IBM Deutschland GmbH has exacted agreement for two hours a week extra work from its employees this year with no increase in pay. Under the agreement with the DAG union for professional employees, many of IBM’s 12,000 German employees will work a 38-hour week instead of 36 hours – but the company had been looking for a 40-hour week, and the agreement includes the possibility of negotiating a 40-hour week at individual factories. IBM reckons the agreement will cut its staff cuts by 5% to 6%. The agreement also reduces annual fringe benefit payments – holiday pay and bonuses – to be reduced to 130% of an employee’s monthly salary, down from 200%. Underlining the new mood of resignation in which some German unions are approaching pay negotiations, DAG says that it will offer the new IBM contract as the basis of negotiations with other computer companies.
