Innovative agreement on partial retirement in the steel industry

On 2 March 1998, the social partners in the German steel industry signed a new framework agreement on employment conditions which permits the conclusion of company agreements on partial retirement.

On 2 March 1998, the steel industry employers' association, Arbeitgeberverband Stahl, and the metalworking industry trade union, IG Metall, signed a new framework agreement on employment conditions on partial retirement (DE9710133F and DE9708224F). The agreement covers the steel industry employees of the western German states of Bremen, Lower-Saxony and Northrhine-Westphalia and is valid from 2 March 1998 to 31 December 2000.

According to the agreement, management and works councils may voluntarily conclude works agreements on the introduction of partial retirement. It is also possible to include employees who are not covered by collective agreements (außertarifliche Angestellte). Before the start of the negotiations, the social partners for the steel industry - Arbeitgeberverband Stahl and IG Metall- have to be informed about the negotiations. During the bargaining process, both are granted consultation rights, and before the works agreement is concluded the two organisations have to agree. This works agreement will then automatically be given the status of a collective agreement.

Arbeitgeberverband Stahl regards this agreement as an example of a modern firm-specific industry-level agreement. Several companies are expected to start negotiations during which they will be supported by their employers' association.