Preussen Elektra agreement cuts hours and creates jobs
Published: 27 August 1997
In July 1997, a new company agreement was concluded for the 11,000 or so employees of the German energy corporation, Preussen Elektra, by the Public Services, Transport and Traffic Union (Gewerkschaft Öffentliche Dienste, Transport und Verkehr, ÖTV), the chemical workers' union, IG Chemie, and the employers' association for the energy sector (Arbeitgebervereinigung energiewirtschaftlicher Unternehmen). The agreement runs for two years until 31 October 1999.
A company agreement signed in July 1997 at Preussen Elektra Corporation in Germany foresees the introduction of a 36-hour working week and the creation of 400 new jobs.
In July 1997, a new company agreement was concluded for the 11,000 or so employees of the German energy corporation, Preussen Elektra, by the Public Services, Transport and Traffic Union (Gewerkschaft Öffentliche Dienste, Transport und Verkehr, ÖTV), the chemical workers' union, IG Chemie, and the employers' association for the energy sector (Arbeitgebervereinigung energiewirtschaftlicher Unternehmen). The agreement runs for two years until 31 October 1999.
Both collective bargaining parties have declared that the central aim of the recent collective bargaining round was to save old, and even create new, jobs at Preussen Elektra. Therefore, the most important element of the new agreement is the conclusion of a two-hour weekly working time reduction and the introduction of a 36-hour week from 1 January 1998. The employees will receive full wage compensation for the working time reduction, but have to accept that there will be no further wage increases for the next two years - which in practice means that there will be a decrease in real wages. As a partial compensation, the agreement provides that the company will make a yearly flat-rate payment to each employee of DEM 400 in 1997, DEM 800 in 1998 and DEM 600 in 1999.
In return, Preussen Elektra promises to create at least 400 new full-time and open-ended jobs during the term of the agreement, in particular through taking on vocational trainees. In addition, the company agrees to create 55 new vocational training places in 1998, and will give those concerned at least a one-year fixed-term contract after the end of their training.
Finally, the collective bargaining parties agree to set up a joint working group which, until the end of 1997, should develop proposals for new working time models (working time accounts, sabbaticals etc) to find flexible and differentiated way to introduce working time reduction.
Eurofound recommends citing this publication in the following way.
Eurofound (1997), Preussen Elektra agreement cuts hours and creates jobs, article.
