IG Metall

District of District of Hannover Hannover for Lower and Saxony-Anhalt for and Saxony-Anhalt

August 2001 IG Metall District Head Office New Production A Signal to create Attracted 5,000 Times a Future IG Metall Collective New Jobs

Where there is a will, there is a way.It is possible, after has a future. It is indeed possible to combat all, to create jobs in . And interesting jobs for unemployment. This is the message of the contract System for the VW Project that, innovative jobs with the social conditions of the signed by IG Metall and . This agreement collective agreement. The breakthrough of IG Metall at is a model of ‘employment-oriented collective bargaining Volkswagen is proof of this. These times of large-scale policy‘. It is high time that other employers follow suit. 5.000 x 5.000 unemployment make it quite hard for works councils and trade unions to explain the necessity of defending Few collective bargaining conflicts can claim to have it covers a comprehensive collective qualification minimum standards and conditions in collective caught as much public attention as the Volkswagen initiative, improves the works councils agreements to a wider public. Yet, IG Metall has resisted project 5,000 x 5,000. A catchy formula, for sure. But co-determination rights in decisions concerning all pressures despite all the criticism, despite all the it took two runs to finally push it through. performance and HR benchmarks and defines unjustified animosity. It has paid off not to take the Klaus Volkert, Four collective agreements are the pillars of a progressive principles of a humane and decent Hartmut Meine, Chairman of the easy way out and give in in June: now, up to 5,000 Chairman of the Joint Works Council comprehensive collective system to put this ambitious organisation of work. IG Metall District of Hannover at Volkswagen people get real opportunities. In other words, they get project into practice (see figure below): it is more than a future. Not on appaling low-wage conditions but on just an exemplary programme to manufacture a new The example of 5,000 x 5,000 shows that beggar-my- It has taken almost two years and two In recent years we have been conditions according to the district-wide collective automobile. The project provides jobs and higher neighbour policies with extra-low wages is no adequate rounds of collective bargaining. Yet, unable to prevent the continuous agreement of the metal industry. What is more: the qualification for a large number of unemployed workers means to create jobs. On the contrary, it is an innovative good news is the final outcome. First, reduction of automobile negotiators have broken new ground in the realm of as well. What may sound plain and simple today did model with acceptable wages and working conditions 3,500 unemployed workers will get jobs manufacturing in Wolfsburg. The collective bargaining policy with unique possibilities take dramatic negotiations to achieve. marked by an industry-wide and district-wide collective in Wolfsburg on decent conditions. IG production of several models left of qualification and modern concepts of production. agreement instead of low wages and a 35-hour Metall has thus established an Wolfsburg and was relocated to There is innovative potential, which bears significance IG Metall, the German Metalworkers‘ Union, had workweek instead of an extension of working times. important and distinct alternative at a other sites abroad. Increased not only for Volkswagen but all district-wide or nation- Jürgen Peters, discussed the project very early on and set clearly The new collective agreement runs counter to neoliberal time when other companies are opting efficiency and productivity, wide collective agreements. Manufacturing in Germany Vice-President of IG Metall defined cornerstones for negotiations. Union approval concepts of labour market policy. for a different route shedding labour redundancies and competition of yes but not at any price. The Volkswagen project now on a large scale. other sites were the causes. Hence, combines increased efficiency and productivity with IG Metall’s collective agreement boasts a number of The conditions are quite favourable as despite our successful model of union demands for humane and decent working interesting and possibly pioneering elements. It may well. Based on a 35-hour workweek, securing employment by means of conditions and a state-of-the art organisation of work. not be adopted by other companies without adaptation. the salaries equal those covered by the a reduction of working times, there The result is an experiment in the area of collective Yet, the underlying philosophy is definitely applicable collective agreement for the metal was an above-average loss of jobs bargaining allowing IG Metall and Volkswagen to beyond Volkswagen company. We are calling upon other industry of Lower Saxony as well the in assembly. This just had to be maintain domestic automobile manufacturing in times companies and concerns to also hire unemployed automobile industry in Germany. stopped. The new collective system of fierce international competition while simultaneously workers on reasonable collective conditions instead of We have also set an example by signals the reversal of the trend. establishing forward-looking elements of industrial opting for large-scale redundancies. improving rights of co-determination. For the first time, an innovative relations. 5,000 times 5,000 breaks new ground (see In the not so distant past even the production concept has actually inside brochure) in the realm of collective bargaining: modest progress achieved by the attracted new production that reform of the Industrial Relations Act otherwise would have gone was harshly criticised by conservative elsewhere. And what is more – on politicians and employers alike. Yet, we conditions that are acceptable for have managed to extend the rights of all colleagues. co-determination beyond the scope of minimum legal stipulations. Besides, this collective agreement is an all-time first laying down the very principles of the organisation of work. This is another new facet in the realm of collective bargaining policy where Masthead we have managed to pass a threshold. However, the praise we have suddenly IG Metall Bezirksleitung Hannover received from the wrong side is fuer Niedersachsen und Sachsen- Anhalt completely inacceptable. BDI ( the German equivalent to the British CBI) Otto-Brenner-Str. 7 president Michael Rogowski simply 30159 Hannover cannot hail the new collective Tel. 05 11.164 06-0 agreement while simultaneously Fax 05 11.161 22 73 condemning the extension of co- E-Mail: [email protected] www.igmetall-bezirk-hannover.de determination and the 35-hour work week. ‘In for a penny, in for a pound.‘ August 2001 Anything else is nothing but bigotry. District of Overview of the Collective Agreement District of Hannover Hannover for Lower Saxony and Saxony-Anhalt for Lower Saxony and Saxony-Anhalt

The Project The Road to Success November 1999 The Director of Labour Relations at The 5,000 x 5,000 project Volkswagen and Member of the transcends the boundaries of Board of Managment, Dr.Peter traditional types of industrial Hartz, introduces the 5,000 x 5,000 labour. Volkswagen aims at a project and attracts major media complete re-definition and re- Jobs for the Flexible 35-Hour District-Wide and Qualification Organisation of Work Benchmarking Co-Determination General Working attention. organisation of business. The Unemployed Workweek Industry-Wide Pay Performance and Conditions December 1999 project is a comprehensive effort instead of Low Wages Allocation of Staff IG Metall signals its interest in the to raise efficiency and productivity programme. Yet, an unregulated of production as a whole, from A prime element of the new Average weekly working Basic pay per month is The collective agreement on For the first time, a collective Another novelty in collective The production of the new The new employees also get 48-hour work week is out of the planning over assembly to sales. comprehensive collective time constituted one of the 4,500 Deutschmarks. qualification is a core agreement covers the bargaining is the works minivan requires the the usual 6 weeks of paid question. It is to render the entire process agreement is the provision most conflictive issues Minimum annual bonuses element of the overall regulation of the council’s right of co- foundation of a new leave a year and receive February 2000 more efficient and to prove that of jobs for the unemployed. during the negotiations. In amount to another 6,000 system. Even prior to actual organisation of work itself. determination regarding company, the ‘Auto 5,000 payment during sickness. IG Metall’s collective bargaining domestic manufacturing can First, 3,500 workers will be the end, IG Metall prevailed. Deutschmarks. They include production in October 2002, This has been an old trade performance and human Ltd.‘. Its supervisory board Leave days due to individual commission at Volkswagen successfully compete with its rivals hired to build the minivan The annual average of premiums for night shifts, the new employees will union demand fiercely resources. This warrants of twelve members includes and personal reasons such declares its willingness to enter elsewhere, for example in Eastern at Wolfsburg; another 1,500 weekly working time will be Christmas and leave days. receive training via the opposed by employers‘ influence on the allocation six employee as marriage, the birth of a negotiations. The general mood: Europe. New concepts of will find a job in at 35 hours. 42 hours per week Further premiums are paid federal employment agency. federations. The present of staff to clearly defined representatives with child or death in the family “We are taking up the challenge“. production and sales are one a later date. This constitutes are maximum (including the for work on Sundays and This period will be followed agreement is a tasks and output. considerable influence that are subject to the same February 2001 element of the strategy. But the quite an achievement given early shift on Saturdays); holidays. Additional by another six months of breakthrough regulating: Economic targets are not the goes beyond the regulations as in the More than a year later Volkswagen organsiation of work is being re- current conditions on the overtime is to be individual performance qualification and 1. low-key hierarchies, only criteria in this context. stipulations of theGerman collective agreements in the presents IG Metall with details of designed as well. The employees labour market. While many compansated by days off. bonuses and a profit- employment. During that 2. team work, Ergonomic findings and the Law on Co-Determination. metal industry of Lower the 5,000 times 5,000 project. are to work in teams. The new large-scale companies are Furthermore, ten late shifts participation scheme are time monthly pay at 35 3. holistic and varied work. compliance with regulations Transactions that are Saxony. Conflict-solving March 30th, 2001 factory will have only three levels shedding labour, IGMetall on Saturdays per employee parts of the deal as well. The hours a week will be 4,000 Employees, teams and the regarding regular daily subject to the board’s mechanisms including the IG Metall enters the negotiations of hierarchy. With the teams has managed to establish a and year are possible. bonus system guarantess, Deutschmarks. Qualification works council have working times and breaks approval such as the arbitration board ensure the after an intense internal debate. assuming responsibility for the counter-trend. The works Workers can ‘save‘ up to 200 that during the duration of will continue to play an guaranteed rights of also play a decisive role. acquisition of shares require settlement of disputes that May 11th, 2001 quality of output pressure will council will take part in hours on a so-called the project the employees important role even later. proposal and objection. This protects employees a two-thirds majority, for might arise in applying the Third collective bargaining round: increase enormously. Hence, hiring new staff. ‘flexibility account‘, a get a salary which is at least The average time spent in While other automobile against excessive pressure instance. The works collective system. Volkswagen insists on an average qualification is to play a major role Furthermore, after a six- regulation which resembles on a par with the district- qualification and training manufacturers distance from above and warrants council’s rights of co- 48-hour workweek. in the project. The first 3,500 month probation period the the BMW model for its wide collective agreement will be three hours per week themselves from concepts acceptable performance determination were May 21st, 2001 unemployed workers to be hired employees will be given Leipzig plant. This credit of the metal industry in and employee. IG Metall of team work, they do loom targets. IG Metall managed extended as well. In the fourth collective bargaining will receive basic qualification and unlimited contracts. This is must be balanced by days Lower Saxony. In concrete had to make a concession: large in this agreement. The to veto a target-based salary The employees get a say round Volkswagen finally gives up training prior to actual production. pretty unique. While the Law off within the course of the terms: the new employees only half the time spent in collective regulation of the scheme propsed by concerning measures of its demand for a 48-hour The attainment target of these on Part-Time and Temporary year. These generous earn no less than workers measures of qualification organisation of work clearly Volkswagen. If pre-defined qualification, the workweek. A first obstacle has been three months is, as Volkswagen Employment flexibility arrangements in the automobile industry and training will be paid. highlights the successful quantity and quality targets benchmarking of removed. Other conflictive issues put it, ‘industrial suitability‘. During has made temporary jobs were an IG Metall at large. During the The other half will be an combination of a project of are not met, the employees performance and staff remain. production these employees will the general rule in the metal concession, to be sure. Yet, qualification period prior to investment of the individual increased efficiency and are required to put in extra allocation. That is quite June 18th, 2001 receive permanent further training industry, IG Metall and the works council has full production this equals employee. Each worker is productivity with demands hours. Yet, these hours are unusual at a time when even The conflict intensifies. Volkswagen and qualification. The Volkswagen have rights of co-determination 4,000 Deutschmarks per entitled to an individual for more humane and credited to their working minimal improvements of insists on a 42.5-hour workweek. infrastructure required comprising deliberately embarked on a in scheduling working month. In the first year the qualification and acceptable working time account if the employer works council rights by the The model seems doomed. ‘factories of learning‘ and team different route. times. guaranteed annual salary development plan. The conditions. is responsible for the cause reform of the Industrial June 25th, 2001 rooms is in the making at the new amounts to 59,500 rageney works council and of non-completion. Relations Act are harshly Dramatic negotiations end without Volkswagen plant. A new company, Deutschmarks, 64,000 management are to jointly criticised by conservatives an agreement. IG Metall’s the ‘Auto 5,000 Ltd.‘, was founded Deutschmarks in the second define the methods and and many employers. representatives unanimously for this project (which will begin year and about 69,000 contents of these plans. The agreement with agree: “Volkswagen has gone too long before October 1st, 2002, the Deutschmarks in the third Measures of qualification Volkswagen is a remarkable far!“ deadline for serial production of year. are to be documented and plea for more co- July 11th, 2001 the new minivan). The Ltd. will be certified. This is more than determination that conveys IG Metall and VW signal their part of the Volkswagen concern mere talk about a message: future-oriented willingness to enter negotiations and be housed in three buildings qualification; rights and investments require more anew. of the works at Wolfsburg. duties are clearly defined. co-determination August 10th, 2001 Federal Chancellor Mr Schröder supports both parties‘ readiness for a second go. August 28th, 2001 Success at last. After 17 hours of negotiations IG Metall and Volkswagen sign the agreement on the collective system for the Volkswagen project 5,000 times 5,000.