A Boost in Car Repair Shop Workers' Salaries Across Germany
Increased compensation for staff members at auto repair facilities - Increased wage allocations for mechanics and staff in automotive repair workshops
Thousands of workers in car repair shops and dealerships in Hesse, Rhineland-Palatinate, and Saarland will soon be enjoying a pay hike. IG Metall Middle has sealed a collective bargaining agreement with the Hessian automotive industry's tariff community, reportedly promising a 2.3% salary increase from July and an additional 3.3% from August 1, 2026. Apprentices too will see an increase of 80 euros per year of training from July and another 3.3% from August.
Additionally, the parties have agreed that employees could take extra days off, funded by deductions from their income. However, the employer side hasn't confirmed this as yet.
While negotiations are ongoing in other federal states, IG Metall Middle is already engaged in discussions for around 11,000 employees in Rhineland-Palatinate and approximately 8,000 employees in Saarland. In the North-East, where Thuringia lies, collective bargaining negotiations are taking place centrally.
Initially, IG Metall demanded a 6.5% pay raise, improvements in work hours, and a 170 euro increase for apprentices. A series of warning strikes were called to pressure employers, but details about the final agreement have not been disclosed. For more precise information, contacting regional trade unions or industry associations is advisable.
Insights from Collective Bargaining Policies:
- Strengthened collective bargaining coverage is one of the goals set forth in the 2025 coalition agreement, which includes companies bidding on federal contracts valued at €50,000 or more adhering to collective bargaining agreements.
- The coalition supports basing the minimum wage on collective agreements and aiming for a minimum wage of €15 by 2026, while ensuring digital access rights for unions and tax incentives for union membership.
- Regional variances in collective bargaining agreements can occur due to economic conditions, as demonstrated in Hesse, Rhineland-Palatinate, and Saarland.
- The announced collective bargaining agreement in the Hessian automotive industry's tariff community, as part of the community policy, includes a 2.3% wage increase from July and an additional 3.3% from August 2026 for employees.
- The wage of apprentices will also see an increase, with an additional 80 euros per year of training from July and another 3.3% from August, as agreed in the employment policy discussed in this collective bargaining.
- The finance industry will be influenced by the collective bargaining agreements, as the proposed Minimum Wage aims for €15 by 2026, as stated in the coalition's employment policy.
- In the business sector, particularly the automotive industry, employers are being encouraged to adhere to collective bargaining agreements as part of the 2025 coalition agreement, which places companies bidding on federal contracts valued at €50,000 or more under this requirement.
- The technology industry may experience variations in employment policies due to regional differences in collective bargaining agreements, such as those observed in Hesse, Rhineland-Palatinate, and Saarland.
