Germany: Economic crisis hits collective bargaining

The economic downturn is beginning to have an effect on collective bargaining in March 2009, with some employers in metalworking seeking to defer agreed pay increases, and a new collective agreement in the textiles industry allowing employers to reduce or cancel wage rises if they face difficulties.

The current sectoral collective agreement for the 3.6 million workers in the metalworking industry, signed in late 2008, runs for 18 months.