Under this agreement, apprentices will receive a monthly increase of €140.

A new collective agreement for Germany's metal and electrical industry will increase salaries by 5.1%, starting with a 2.0% raise on April 1, 2025, followed by an additional 3.1% raise a year later.

The agreement, reached after 18 hours of negotiations, includes a one-time payment of 600 euros to be distributed by February 2025.

Economists view the agreement as a reasonable compromise, reflecting the ongoing industrial recession and challenges in the automotive sector.

Following the end of the peace obligation, IG Metall organized warning strikes involving over 600,000 workers, but plans for full-day strikes have been canceled due to the agreement.

The agreement currently applies to the IG Metall districts of Küste and Bavaria, with expectations for nationwide implementation affecting nearly 4 million workers.

Barbara Resch, IG Metall district leader, emphasized that the outcome is beneficial for employees and aims to alleviate their financial burdens.

Employers plan to adopt this pilot agreement in Lower Saxony, with implementation set for November 22, 2024.

Harald Marquardt, a negotiator for Südwestmetall, noted that despite challenging circumstances, the parties were able to find compromises, making the deal manageable for many businesses.

Stefan Wolf, president of Gesamtmetall, expressed satisfaction with the agreement while acknowledging the difficulties of negotiating during a recession and the importance of avoiding strikes.

The agreement provides flexibility for companies in financial distress, allowing them to postpone or reduce certain payments.

Despite competitive pressures and high energy costs, many metal companies are expected to manage the wage increases without severe economic crisis implications.