MADRID, 18 Nov. (EUROPA PRESS) -

The German union IG Metall, the largest in Germany, has reached a "pilot agreement" in the negotiation of the collective agreement for metal and electricity workers in Baden-Wurttemberg for an 8.5% rise in wages in two stages and the payment of a compensation premium for inflation of 3,000 euros.

The agreement, which can serve as a reference for the almost 4 million workers in the sector, contemplates a wage increase of 5.2% from June 2023 and 3.3% from May 2024, as well as the payment of 1,500 euros in each of the two years as a compensation premium for the increase in inflation.

The new collective agreement will be valid until September 30, 2024 and the board of directors of IG Metall has recommended applying it in all areas of collective bargaining, thus ending five rounds of negotiations and the threat of strike action in a key sector of the largest economy in Europe.

"Employees will soon have significantly more money in their pockets, and permanently," said Jörg Hofmann, IG Metall's first president, noting that the agreed wage increase "is added to the tax-free inflation compensation bonus." .

"Both - inflation compensation bonus and percentage increase - bring employees noticeable relief in view of rising prices," he added.