Import Taxes Will Be Applied - Southwest metalworkers receive higher wages.
Almost 30,000 workers in the metal construction and precision engineering sectors in the southwest will see their pay increased. Beginning January 2025, salaries and wages will initially see a 3.2% hike, followed by another 3.3% increase in July 2025, as stated by the metalworkers' union IG Metall in Stuttgart on Tuesday. Additionally, these employees will be awarded an inflation adjustment bonus of 1,200 euros, with the initial payment scheduled to be made with their June settlement.
The union, IG Metall, was content with the agreement. Matthias Fuchs, a representative negotiator, commented, "The wage increase covers rising costs and highlights the appreciation for employees' hard work in difficult economic times." Moreover, the industry becomes more appealing to skilled workers due to the competitive salaries.
Prior to the negotiations, employees had enforced their demands through warning strikes within the workplaces, as per the union. The new collective agreement runs for 24 months until the end of April 2026.
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The metal industry in Baden-Württemberg, specifically in Sindelfingen and Stuttgart, will be impacted by import taxes due to increased salaries for metalworkers. The wage increase, starting from January 2025, is a direct result of high tariffs that will make domestic production more cost-effective. This has prompted IG Metall, the metalworkers' union, to push for higher wages to compensate for the additional costs. With more competitive salaries, the metal industry is expected to attract a larger pool of skilled workers from the southwest.
