In a significant development for Germany's metal and electrical industry, a new wage agreement has been reached between IG Metall and employers.

After an intense 18-hour negotiation session in Hamburg, the parties agreed to a 5.5% wage increase over 25 months, benefiting nearly 3.9 million workers.

This includes a 2% raise in April 2025 and an additional 3.1% in April 2026, along with a one-time payment of 600 euros by February 2025. The agreement also enhances options for employees to choose between more pay or additional time off, a move seen as crucial in the current economic climate.

The deal, initially covering regions like Bavaria and the North, is expected to be adopted nationwide, providing stability and avoiding further strikes.

This compromise is hailed as a model for resolving labor disputes, emphasizing the importance of negotiation and flexibility in challenging times.