The approximately 580,000 employees in the chemical and pharmaceutical industry will receive more money.
(Photo: imago/blickwinkel)
Berlin A breakthrough was achieved in the third round of collective bargaining for around 580,000 employees in the chemical-pharmaceutical industry. Wages and salaries will rise in two stages by a total of 6.5 percent. From January 2023, they will initially be increased by 3.25, followed a year later by a second increase of the same amount.
In addition, the companies pay the 3,000 euros in inflation money that the federal government wants to exempt from taxes and duties. Payment will be made in two tranches of 1,500 euros each in January 2023 and January 2024 at the latest. The collective agreement has a term of 20 months until the end of 2024.
The chief negotiator for the Federal Chemical Employers’ Association (BAVC), Hans Oberschulte, spoke of a “crisis-oriented conclusion”. It offers the necessary flexibility for companies “that are in economic difficulties now or in the future”. Both stages of the pay increase can be postponed by up to three months for economic reasons.
If a company is in the red, the pay increase is postponed by two months, and by one month if the net return on sales is less than three percent. If a company concludes an agreement with the works council, a three-month postponement is also possible. The special payments of 1,500 euros each cannot be postponed.
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“We kept our word under miserable conditions and pushed through an intelligent combination of quickly noticeable relief and sustainable wage increases,” said the negotiator of the industrial union for mining, chemicals and energy (IG BCE), Ralf Sikorski. The combination of special payments and a table-based increase in wages meant a net reduction in average workload of 12.94 percent for the employees, and even 15.64 percent in the entry-level wage group.
degree could serve as a model for other sectors
It is the first major deal that was made under the influence of the Ukraine war and sharply increased prices. Inflation has been reaching new heights since the outbreak of war on February 24th. In September, consumer prices rose by ten percent compared to the same month last year.
In the talks, the employers referred to the difficult economic conditions. Since the beginning of the Ukraine war, the companies have had to reduce their production by twelve percent. In addition, an avalanche of energy prices is rolling towards companies.
The union emphasized that the employees expected a significant increase in wages in view of the sharp rise in prices. In addition, rising earnings are a direct investment in the economy because they increase purchasing power and can thus boost consumption.
Negotiations had already started in March. In February, the IG BCE focused on “a sustainable increase in purchasing power” in its resolution on the demand. At that time, the inflation rate was still a good five percent.
>> Read here: Government expects significantly less inflation in 2023 – gas and electricity price brakes should help
Two days after the demand was announced, the Russian war of aggression in Ukraine began. In view of the economic uncertainty caused by the war and the sharp rise in prices, especially for energy, both sides then agreed on a “bridge solution” at the beginning of April. Employers and union agreed to suspend negotiations and resume in October.
Until then, the employees received a “bridging payment” of 1,400 euros. Companies in economic difficulties could reduce the payment to 1000 euros. About seven percent of the companies in the sector made use of this. Including the bridging solution, the term of the collective agreement is even 27 months.
The conclusion could have a signal effect for the ongoing collective bargaining for the approximately 3.9 million employees in the metal and electrical industry. Here, IG Metall started with the demand for eight percent more money.
Collective bargaining for around 2.5 million federal and local employees will also begin in January. Here, the Verdi and DBB civil servants’ union and collective bargaining union demand 10.5 percent.
More: Highest tariff demands for years: is the wage-price spiral now threatening?