IG Metall and Südwestmetall enable company bike leasing in Baden-Württemberg

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Good news: Following negotiations, IG Metall and Südwestmetall in Baden-Württemberg have decided to allow employees in metal and electrical companies bound by collective bargaining agreements to use part of their pay to finance a bicycle or e-bike from May 1, 2022.

However, this option is available only if the employer and the works council agree on it, according to IG Metall. The unions stated that the driving force for the new collective agreement is a significant increase in interest of both employers and employees in models providing incentives for sustainable mobility.

Collective bargaining agreement includes option of provisioning leased bikes via salary conversion

“The collective bargaining agreement provides new options for employees who are keen on cycling to work. This is not only eco-friendly; it also demonstrates once again how social partnership works in practice in the southwest,” says Roman Zitzelsberger, District Manager of IG Metall Baden-Württemberg.

Wilfried Porth, Chairman of Südwestmetall, added: “The fact that we have created a collective bargaining framework for this comes at the right time, both from the point of view of climate protection and in view of the massive increase in fuel prices.”

The move of IG Metall is a key decision, particularly in terms of climate protection and sustainable mobility. Employees who want to cycle to work now have the opportunity to do so at attractive conditions thanks to the new “Collective Agreement on the Company Option of Providing Leased Bikes by Way of Voluntary Salary Conversion.” In addition, employees only have to pay tax on the monetary benefit of the use of the bike (0.25 percent of the bike’s list price per month).

The deduction of the monthly lease payment from the collectively agreed gross remuneration necessitates the consent of the collective bargaining parties, which has now been granted.

Company bike leasing in Baden-Württemberg for unionized companies as of May 1, 2022

“As a company bike provider, we are pleased that the collective bargaining agreement gives employees the opportunity of using a company bike as a sustainable and healthy alternative to the company car. Therefore, we expressly support this decision and offer straightforward and reliable processing to all interested companies,” says Luisa Weckesser, Bikeleasing press spokeswoman.

Wasilis von Rauch, Managing Director of Zukunft Fahrrad, also sees the collective bargaining agreement as a major success: “Opening up Baden-Württemberg’s collective bargaining agreements to company bike leasing is a breakthrough for healthy and sustainable mobility.” Interest in company bikes runs very high among both employers and employees, he said. “We hope that other unions will now also recognize the added value for employees and adapt the collective agreements,” von Rauch said. Federal policy could also send a key signal in support of cycling by safeguarding the successful company bike model through a separate provision in the Income Tax Act.

How to use Bikeleasing-Service in your company

The Bikeleasing-Service offering is ideal for companies wanting to motivate their employees through an attractive and eco-friendly incentive and to attain long-term employee retention. Modest monthly lease payments can save employees up to 40% on the acquisition of a bicycle or e-bike compared to a private purchase. Private use of the bike is also permitted, of course. For entrepreneurs, there is no financial outlay and very little administrative effort because the process is absolutely straightforward.


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