IG metall union reaches deal with north-west German steel industry

Steel employers in north-western Germany and the IG Metall trade union have reached a collective bargaining agreement, granting workers a 1.75% pay rise from January 1, 2026, union and industry officials said on Wednesday.

Apprentices will see a disproportionate increase of €75 per month. The agreement runs through December 31, 2026, and comes after the statutory labour peace obligation expired at midnight. The deal remains subject to approval by IG Metall's tariff commission and executive board.

The pact also extends agreements on job security, temporary contracts, and partial retirement schemes. Measures include apprentice retention, reduced working hours down to 28 hours per week with partial wage compensation, flexible working time accounts and phased retirement arrangements.

Knut Giesler, head negotiator for IG Metall North Rhine-Westphalia, said it had taken four negotiation rounds to reach a resolution. "The 'Project Responsibility for Steel' nearly failed, but in the end all parties took responsibility," he said. The agreement reflects the steel industry's challenging situation, he added.

Reiner Blaschek, chairman of the Employers’ Association of the Steel Industry, described the settlement as placing a heavy burden on companies. "The outcome significantly strains the capacity of our industry," he said, but added that the compromise provides some planning certainty for 2026.

Germany's steel sector faces a difficult environment due to a slowdown in key customer industries, particularly automotive, rising energy costs, cheap Chinese imports and investment needed for greener production.

High US import tariffs further complicate matters, while major producers like Thyssenkrupp plan to cut thousands of jobs.