Igz Collective Agreement

By way of comparison, the CGB/INZ collective agreement provides for hourly wages of 1 and 7.80 euros in West Germany on a scale 3 (skilled workers), while employees receive lower rates of pay during the period when they are not leased to a user company. Even lower tariffs were agreed in another collective agreement signed in June 2003 between the CGB and another small employers` organisation for small and medium-sized enterprises in the sector – the Association of Small and Medium-sized Enterprises for Temporary Work (MVZ). On 20 February 2003 (DE0303202N), the DGB and BZA concluded an initial framework agreement defining the “broad outlines” of a tariff package. The agreement set standard wages for temporary workers and, in order to respect the principle of equal pay, the social partners agreed that temporary workers sent to user companies where the conventional rate of pay for permanent workers was higher than the normal rate of temporary workers should receive additional remuneration. The exact amount of these allowances should be negotiated separately between BZA and the trade unions organised in the sectors concerned. The other terms of the collective agreements are expected to be concluded by May 31, 2003. For the first time in the history of German collective agreements, all DGB member associations and major employers` organizations have entered into inter-professional collective agreements at the federal level for temporary workers. At the presentation of the DGB-BZA package, DGB negotiator Reinhard Dombre said he was pleased with the outcome of the negotiations. He added that the interests of workers had been preserved and that the industry could become a normal economic sector like any other.

The DG points out that the two sets of collective agreements improve working conditions in this sector by compared to current standards. The iGZ-DGB tariff package provides for both compensation and many other labour relations issues. The main brochure on wages summarizes the payment framework contract, the wage payment contract, the main collective agreement and the collective agreement for the safeguarding of employment. In May 2003, representatives of all trade unions affiliated with the German Confederation of Trade Unions (DGB) signed separate collective agreement packages with two major employers` organisations in the temporary labour sector. Agreements cover salary, working time, paid leave and bonuses. The negotiations followed the new interim labour legislation, which came into force in early 2003. The collective agreements of temporary workers provide for the accounting of working time. However, some additional provisions regarding working time accounts must be taken into account when acting workers are employed in the so-called minimum wage. In this case, time accounts can only be kept if the minimum wage contract allows it.