Germany Warning Strikes 2026 Employer Checklist on Collective Agreements and Pay

PEOPLEGRIP GmbH | Part 1 | As of 2 November 2026

Germany warning strikes employer guide cover on collective agreements pay and supply chains

Warning strikes began in Germany’s metal and electrical industry on 1 November as the 2026 pay negotiations continued without agreement. Companies with manufacturing or sales operations in Germany should check collective agreement coverage, contractual reference clauses, pay during work stoppages and supply-chain exposure. Companies outside direct sector agreement coverage can still be affected through contracts and their supply chains.

Key takeaways

• IG Metall demanded a 5% pay increase for a 12-month term. Employers proposed a one-off payment in July 2027 and a 1.3% increase in pay scales in July 2028. These remain proposed terms.

• The peace obligation relevant to this pay round ended on 31 October. The figure of approximately 3.7 million refers to employees in the industry, not the number taking part in strikes.

• OT membership is not a blanket exemption from industrial action. Contractual incorporation of collective terms is distinct from direct collective agreement coverage.

• Pay for strike participants and pay for non-striking employees affected by a stoppage require separate assessments.

  
  

What has been proposed

The employer proposal includes a one-off payment of 1% of average collectively agreed annual gross pay, a 1.3% increase in pay scales in July 2028 and a term running to the end of 2028. Regional payment amounts and conditions must be distinguished.

For Baden-Württemberg, Südwestmetall proposed EUR 700 in July 2027. Companies with a net return on sales below 2.3% could postpone or, in some circumstances, cancel the payment. These amounts and conditions should not be treated as uniform across Germany.

IG Metall rejected the proposal and is increasing pressure through warning strikes. The parties have not yet reached agreement, and further bargaining takes place regionally. Employers should therefore follow subsequent developments and the final settlement before treating the proposed increases or payment conditions as confirmed payroll terms.

The peace obligation and warning strikes

The peace obligation(Friedenspflicht) generally restricts industrial action over matters governed by an effective collective agreement. The obligation relevant to this pay round ended on 31 October 2026, and warning strikes began at midnight on 1 November. This does not mean that every collective agreement or every peace obligation has ended.

A warning strike Warnstreik is a temporary stoppage used to exert pressure during negotiations. IG Metall explains that it can call warning strikes without a formal strike ballot. Its 75% approval threshold for a full strike concerns the union members called to vote and forms part of its internal procedure. It is not a universal statutory voting requirement for strikes in Germany.

Nor does expiry of an agreement immediately remove existing pay and working conditions. Section 4(5) TVG provides for the after-effect(Nachwirkung) of collectively agreed norms until they are replaced by another arrangement. The continuing application of terms must be assessed in the context of the company’s coverage arrangements.

Is your company covered by a collective agreement

Start by checking the regional, sectoral and personal scope of the relevant agreement for the legal entity and establishment. Being part of an automotive, machinery or electronics supply chain does not itself establish coverage under the metal and electrical industry agreement.

An employer association member with collective agreement coverage should confirm its membership status and the applicable agreement. Direct and mandatory application of individual employment terms depends on the employer’s and employee’s relevant collective bargaining status and the agreement’s scope. A company-level collective agreement or a declaration of general applicability may also establish coverage.

OT membership means association membership without collective agreement coverage. In case 1 AZR 775/10, the Federal Labour Court held that, following an effective switch to OT status and timely notification to the union, a warning strike aimed solely at enforcing association-level bargaining demands was generally unlawful. This should not be extended into a prohibition on strikes for every purpose. Action seeking a company-level agreement, for example, requires separate assessment.

A non-member or OT employer may still have to apply collectively agreed terms through employment contract reference clauses(Bezugnahmeklauseln). A dynamic reference may incorporate subsequent changes, while a static reference may incorporate a particular version. The wording and scope of the clause are decisive. Contractual incorporation does not itself establish direct collective agreement coverage under the TVG.

How should pay be handled

During participation in a lawful strike, the main obligations to perform work and pay remuneration are generally suspended. Employers do not owe pay for the time spent participating. Union strike pay(Streikgeld) is subject to the union’s separate eligibility rules.

Pay cannot automatically be withheld from non-striking employees who cannot work because production has stopped. The employer may bear ordinary operational risk(Betriebsrisiko) under section 615 BGB, but stoppages caused by industrial action can engage separate industrial-action risk principles(Arbeitskampfrisiko).

Relevant factors include whether operations can continue, whether doing so is economically reasonable, whether the effects are direct or indirect and how continued pay would affect the balance between the parties to the dispute. Sharing an industry or bargaining area is not, by itself, a sufficient basis for withholding wages.

Introducing short-time work(Kurzarbeit) must also be distinguished from eligibility for the short-time work allowance(Kurzarbeitergeld). Strike-related stoppages can trigger suspension provisions under section 100 SGB III. Employers should not assume the same benefit treatment as for an ordinary decline in demand.

Checklist for German operations

1. Confirm coverage. Check association membership and status, company-level agreements, the relevant agreement’s scope and any declaration of general applicability.

2. Review employment contract references. Identify dynamic or static wording, the agreements and terms incorporated and the employees covered.

3. Prepare for stoppages. Establish safety, site access, production and delivery procedures, arrangements for employees who can continue working and internal communication responsibilities.

4. Separate payroll scenarios. Distinguish strike participation from downtime affecting non-strikers and review the legal basis before deductions. Where a works council(Betriebsrat) exists, check its relevant rights and communication procedures.

5. Assess supply-chain and short-time work exposure. Review critical suppliers and customers, alternatives and stock levels. Assess the basis for introducing Kurzarbeit separately from benefit eligibility.

6. Brief headquarters on the actual exposure. Explain coverage and contractual arrangements, expected operational effects and the response plan alongside the headline news.

7. Review the final settlement. Apply increases, effective dates, one-off payments, adjustment conditions and any retroactive terms according to the settlement and the company’s coverage arrangements.

   
   

Next negotiations and employer action

Further bargaining dates vary by region. IG Metall’s schedule updated on 30 October listed the Küste region’s third round as provisionally scheduled for 6 November, while several other dates remained open. Follow the relevant regional announcements for subsequent developments.

While negotiations continue, German entities can clarify coverage, review contracts and establish payroll decision criteria. Any actual strike or stoppage should be assessed against the specific facts before action is taken.

Contact PEOPLEGRIP if you would like support reviewing collective agreement coverage and HR preparedness for your German operations.

References

1. IG Metall. Tarifrunde Metall und Elektro 2026 Warnstreiks gestartet. 1 November 2026. Source

2. IG Metall. Tarifrunde Metall und Elektroindustrie 2026 regional bargaining schedule. Updated 30 October 2026. Source

3. Südwestmetall. Tarifrunde 2026 Südwestmetall legt Angebot vor. 27 October 2026. Source

4. METALL NRW. Tarifrunde 2026 NRW Metallarbeitgeber legen Angebot vor. 27 October 2026. Source

5. Tarifvertragsgesetz TVG sections 3–5, especially section 4(5). Source

6. Federal Labour Court. Judgment of 19 June 2012 1 AZR 775/10. Source

7. Federal Labour Court. 4 AZR 232/20, paragraphs 54–55. Source

8. Bürgerliches Gesetzbuch BGB section 615. Source

9. Federal Labour Court. 1 AZR 495/10. Source

10. IG Metall Berlin. So laufen Tarifverhandlungen ab. 28 October 2026. Source

11. SGB III section 100 and Federal Employment Agency instruction 202410002 of 4 October 2024. Source 1 · Source 2