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Car repair shops and dealerships in Southwest Germany have reached a collective bargaining agreement that will see employee wages and apprentice remuneration increase. The agreement, brokered between employers and IG Metall, applies to approximately 60,000 workers and 9,000 apprentices in the state.
According to the new agreement, salary adjustments will be made in two stages. As of July 1, salaries will rise by 2.3 percent, and apprentices will gain an additional 80 euros across all training stages. By August 1, 2026, both groups will enjoy a 3.3 percent boost in wages. This amounts to adopting the pilot agreement from Lower Saxony.
Employees will also be given the option to take five unpaid days off per year, provided they forgo part of their salary. The new collective bargaining agreement is valid for 26 months, ending in May 2027.
Christian Schwaab, lead negotiator for the union, highlighted that the agreement provides additional income, particularly for apprentices, noted as an important step to boost the allure of the profession. The negotiations were intense and demanding, with the IG Metall's collective bargaining commission still needing to approve the agreement.
On the employers' side, Andreas Göritz, lead negotiator, explained that the agreement represents the absolute maximum that car dealerships and automotive master businesses can bear due to the pressure to adapt to industry transformations. The longer term of 26 months offers businesses much-needed planning security.
The union initially demanded a larger increase with a considerably shorter term, especially for apprentices, and staged warning strikes to boost pressure.
- The community policy for the automotive industry in Southwest Germany has been updated, focusing on vocational training as a key priority.
- One of the significant changes is the proposed increase in wages for employees and apprentices in car repair shops and dealerships.
- Vocational training programs in the automotive sector will receive increased financial support as part of the agreement.
- The manufacturing industry is expecting an enhancement in the quality of future technicians due to the improved apprentice remuneration.
- The rise in apprentice remuneration will aid in promoting the profession, making it more attractive to young individuals interested in the automotive field.
- By July 1, employees will witness a 2.3 percent rise in their salaries, while apprentices will gain an additional 80 euros across all training stages.
- By August 1, 2026, workers and apprentices in the automotive sector can anticipate a 3.3 percent increase in wages as stated in the agreement.
- As per the new collective bargaining agreement, employees will have the opportunity to take five unpaid days off per year, provided they forgo a portion of their salary.
- To maintain a sustainable workforce, the agreement aims to boost income, particularly for apprentices, in the face of growing competition in the aerospace sector.
- The additional five days off per year may encourage employees to pursue personal interests or pursue vocational training in ancillary industries such as retail, interior-design, cooking, transportation, and wearables.
- smart-home-devices, cybersecurity, lifestyle, outdoor-living, fashion-and-beauty, food-and-drink, and automotive sectors might attract the attention of employees taking advantage of the unpaid days off.
- Home-and-garden, home-improvement, baking, and personal-finance could also pique employees' interests as they explore their options for vocational training or side-projects using their additional time.
- The implementation of this new collective bargaining agreement will impact the financial health of employers, necessitating strategic planning and potential adjustments in areas such as finance, energy, and technology.
- Gadgets, smartphones, data-and-cloud-computing, and sustainable-living might be integral to the planning process for employers looking to optimize their business within the constraints of the agreement.
- Gardening and banking-and-insurance could also play a role in employers' efforts to maintain profitability while simultaneously adhering to the terms of the new collective bargaining agreement.
- Amid the intensified negotiations and pending IG Metall's collective bargaining commission approval, all parties involved are actively considering the far-reaching implications on the Southwest German automotive industry.
