Germany: Historic agreement gives Hochtief workers 7,14 per cent pay rise

The new agreement with Hochtief will for the first time apply equally to workers in both East and West

The German construction workers union IG BAU has reached an agreement with the construction company Hochtief that will give construction workers a pay rise of 7,14 in three stages until 2020.

Negotiations were tough and despite great economic developments with profits expected to increase with 15 per cent this year, Hochtief was at first not willing to increase the salary of their workers.

It is also the first time that all Hochtief workers will receive the same pay rate across Germany. Previously the company has had separate agreements for workers in the East and West.

"This is a historic agreement as it is nationwide and applies equally to all Hochtief workers in the country," said Dietmar Schäfers from IG BAU who is also BWI's deputy President. "So Hochtief pays more as in the collective agreement for Construction in Germany!"

From May this year workers will get a pay rise of 4 per cent that will be paid out retroactively, then 2 per cent in 2019 and an additional 1 per cent in 2020.