Digital Equipment applies metalworking sectoral pay agreement

27 July 1997
Stefan Zagelmeyer
Germany
In July 1997, the German subsidiary of the US-based computer manufacturer Digital Equipment Corporation (DEC) struck a new company collective agreement with the metalworkers' trade union Industriegewerkschaft Metall (IG Metall), and a new works agreement with the DEC works council. The company agreement provides for the application of the sectoral collective wage agreements of the Bavarian metalworking industry, including the provisions regarding the pay structure and the grading system, to all 2,700 DEC employees. Furthermore, the agreement is the first in the metalworking to abolish the distinction between white-collar and blue-collar workers. All employees at DEC are to be allocated to the different pay groups by 1 January 1999. The works agreement foresees the introduction of performance-related pay for all employees working in the sales department. Both agreements contain a status quo clause [1] (Besitzstandsklausel). [1] www.eurofound.europa.eu/ef/efemiredictionary/status-quo-clause
Article

In July 1997, the German subsidiary of the Digital Equipment Corporation (DEC) and the IG Metall trade union signed a company agreement which provides for the Bavarian metalworking sector collective pay agreement to be applied to all DEC employees in Germany.

In July 1997, the German subsidiary of the US-based computer manufacturer Digital Equipment Corporation (DEC) struck a new company collective agreement with the metalworkers' trade union Industriegewerkschaft Metall (IG Metall), and a new works agreement with the DEC works council. The company agreement provides for the application of the sectoral collective wage agreements of the Bavarian metalworking industry, including the provisions regarding the pay structure and the grading system, to all 2,700 DEC employees. Furthermore, the agreement is the first in the metalworking to abolish the distinction between white-collar and blue-collar workers. All employees at DEC are to be allocated to the different pay groups by 1 January 1999. The works agreement foresees the introduction of performance-related pay for all employees working in the sales department. Both agreements contain a status quo clause (Besitzstandsklausel).

The Digital Equipment Corporation, one of the world largest computer manufacturers, is not a member of an employers' association, nor had it been party to any collective agreements until 1993. In 1992, IG Metall undertook a recruitment drive in order to build up sufficient organisational strength for collective bargaining. After a two-week strike, DEC and IG Metall signed a company level "recognition agreement" (Anerkennungstarifvertrag) in 1993, which laid down (1) that the provisions of the current sectoral metalworking agreements were to be generally applied throughout the company and (2) favourable supplementary provisions for DEC employees on dismissal, co-determination, childcare leave, and continued education, which deviated from the sectoral agreements. Furthermore, the deal included the provision that DEC and IG Metall would negotiate a new grading system based on metalworking sector collective agreements.

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