Metaller-KV: The new minimum basic wages at a glance

Metaller-KV: The new minimum basic wages at a glance

2020 is not a year like any other. This recently became apparent in the collective bargaining negotiations in the metal industry. Normally, representatives of employers and employees argue and haggle over every percentage point and even every decimal place in tough negotiations, sometimes even threatening strikes. This year, however, the union and employers surprisingly agreed on a new collective agreement for the around 130,000 employees in the metal technology industry in the first round of negotiations, which was then also adopted by the other sub-sectors of the metal industry. 

The actual and KV wages and salaries for workers and employees will increase by 1.45 percent in 2021 in accordance with the new collective agreement. The minimum basic wages were increased to the same extent. This increase corresponds to the inflation rate over the past twelve months. According to union figures, there are more than 190,000 employees in the metal industry, most of them (127,000) in the metal technology industry, but also no fewer than 35,000 in the vehicle industry. According to the collective agreement that has now been negotiated, the new minimum wage is 2000 euros. 

“A lot is different in this wage round”

In advance, the employers even wanted to postpone the KV negotiations until 2021. Employer representative Christian Knill expects major problems for companies and, as a result, for jobs in the coming months and years. The chairman of the Metal Technology Industry Association (FMTI) had already said in advance of the negotiations that there was “nothing to distribute this year, only worries”. Industrial companies such as FACC and voestalpine have already announced job cuts, and the MAN truck factory in Steyr with 2,300 employees is to be completely closed by 2023. Knill's counterpart, the union chief negotiator Rainer Wimmer (Pro-Ge), said: "A lot is different in this wage round." You have now taken responsibility. 

Ultimately, a compromise was reached that was probably acceptable to everyone involved and took into account the special circumstances resulting from the Covid-19 pandemic. In the lowest wage groups 6 and 7, a fixed minimum wage of 2,000 euros was agreed last year for January 1, 2021. The apprentice compensation, as well as the collective agreement allowances and distance allowances, should also be increased by 1.45% to compensate for inflation. Night work and shift allowance for the 3rd shift will be €2.39 from January 1, 2021 (this was also agreed in 2020).

The leisure option

Instead of increasing the actual wages, the possibility of agreeing on paid time off can be created through a written agreement between employer and employee or, in companies with a works council, through a works agreement. If an agreement is concluded, the following provision applies: If you work full-time, you are entitled to at least 2 hours 10 minutes of free time per month. 

From January 1, 2021, the following minimum basic wages apply (in euros):

Allowances (in euros):

Apprentice compensation from January 1, 2021 (in euros):