Trade association recommends companies raise increases before collective bargaining agreement

In the deadlocked collective bargaining dispute in the retail sector, the industry association HDE recommends that companies initially increase salaries for employees, even without a collective agreement. The German Trade Association (HDE) announced on Monday in Berlin that it is not foreseeable that a solution will be reached in the collective bargaining negotiations in a timely manner.

According to a decision by the HDE collective bargaining committee, companies bound by collective bargaining agreements now have the opportunity to pay out “voluntary, creditable advance increases of 5.3 percent” from October 1st at the earliest, it said. “Companies can implement this advance increase, which includes collectively agreed wages, salaries and trainee remuneration, in all retail tariff areas from October 2023.”

Depending on their own economic situation, each company must decide for itself whether it can implement the association’s recommendation, the HDE said. “There is no obligation for companies to implement these precisely and in full. It is only mandatory with regard to your upper limit.” The association is committed to finding a solution to the collective bargaining dispute.

For months, the Verdi union and retail employers have been fighting for a new collective bargaining agreement at state level across the country. Verdi is calling for an increase in hourly rates by a uniform 2.50 euros for a term of 12 months. The employers made different offers depending on the federal state. (dpa)

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