Retail bargaining round completed

In December 2003, the 2003 collective bargaining round in German retail ended when the bargaining parties in the Berlin area concluded a new collective agreement. The main issue in negotiations was a supplement for late working hours on Saturdays, following the introduction of new legislation earlier in 2003 which extended shop opening times until 20.00 on Saturdays. The various regional agreements provide for pay increases of 1.7%-1.9% in 2003, plus similar increases in 2004, and new supplements for working late on Saturdays.

The 2003 collective bargaining round in retail, covering 16 bargaining regions, finally ended after seven months of negotiations on 8 December 2003 when the bargaining parties - the United Services Union (Vereinte Dienstleistungsgewerkschaft, ver.di), the Employers' Association for the Retail Trade (Hauptverband des Deutschen Einzelhandels, HDE) and the Joint Federation of Large and Medium-sized Retail Employers (Bundesarbeitsgemeinschaft der Mittel- und Großbetriebe des Einzelhandels, BAG) - reached a new collective agreement for the Berlin bargaining region. The accord in Berlin completed the 2003 bargaining round, which besides the annual pay increase had particularly focused on the issue of increased pay for working late on Saturdays. The latter had been demanded by the trade union following the introduction of new legislation in March 2003, which extended shop opening times until 20.00 on Saturdays (DE0303203F).

The first collective agreement in the 2003 retail bargaining round - which was accompanied by a number of local and regional strikes - was concluded on 16 July 2003 in Hamburg, with most other settlements following in the summer and autumn. The agreements have a duration of 24 months and provide for pay increases ranging between 1.7% and 1.9% for 2003, and about the same rises for 2004. All collective agreements, however, include various numbers of 'zero months'- ie the agreed pay increases do not come into effect immediately at the beginning of the duration of the agreement but are delayed. A number of regional collective agreements in western German retail include a lump-sum payment as partial compensation for these zero months. All the agreements include increases in remuneration for apprentices.

On the issue of additional pay for hours worked late on Saturdays, the bargaining parties agreed that employees are entitled to a 20% supplement for hours worked late in the afternoon. This supplement has been granted in the form of a working time 'bonus', thus effectively cutting the average working week. Whereas in the various western German bargaining areas this supplement will be granted for hours worked from 14.00 or 14.30 to 20.00, eastern German employees and those in Berlin are entitled to the 20% time bonus only for work after 15.00. Companies which open late on only one Saturday per month will not have to pay any bonus. The collective agreements also make provision for employees to be entitled to at least one free Saturday a month - a provision which reflects a clause in the new Shop Closing Hours Act (Ladenschlussgesetz).

Employers expressed satisfaction that the supplements for Saturday work are in line with the bonus rates which had been paid for unsocial hours before the latest extension of shop opening hours, and that the bonus is significantly below trade union demands. Ver.di on the other hand is satisfied that it has defeated earlier demands by employers to terminate all bonus pay for working on Saturdays. The union is content that working hours on Saturday afternoons and evenings retain a special status and will not be regarded as regular working time.