Germany: steel industry workers obtain ‘Covid bonus’ and additional annual payments

On Saturday 27 March, social partners in the steel industry of norther Germany struck a new collective agreement for the 70,000 employees in the sector, in the Länder of North Rhine-Westphalia, Lower Saxony and Bremen. Those employees covered by the deal will be eligible for a so-called 'Covid bonus’, an exceptional payment of €500, which will be paid on 30 June 2021. They will then receive an additional payment each year, amounting to €600 from 2023. Depending on the economic situation of the company, these special payments may be used to fund job guarantee measures. The agreement has been signed at a crucial time, amid ongoing negotiations to renew the collective agreement in the metal industry. These negotiations will resume this afternoon and an agreement could well be reached tonight.