If you were to take the currently overheated prices as a benchmark, then the area tariff would be put to the test, said Oberschulte.
Berlin The chief negotiator of the Federal Chemical Employers’ Association (BAVC), Hans Oberschulte, warns against allowing oneself to be guided by the high inflation figures in the forthcoming collective wage negotiations for the chemical industry. “If we take the currently overheated prices as a benchmark, then the area tariff is facing a crucial test,” said Oberschulte, who is head of HR at BASF SE, to the Handelsblatt.
Inflation will fall again, the only question is when and how quickly it will go down again. “And the main drivers at the moment are the high energy prices, which are affecting companies and employees alike.”
The industrial union for mining, chemicals and energy (IG BCE) wants to decide on its demand for the collective bargaining round this Tuesday, which affects around 580,000 employees. It is likely that the union – as recommended by the board – will demand wage increases above the rate of inflation, without naming a specific percentage.
The danger is “that there are no upper limits to the imagination,” said Oberschulte. The union shouldn’t just be guided by “a few big flagships with good results”. 80 percent of the chemical industry consists of small and medium-sized companies, for which a degree must also be manageable.
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Oberschulte did not want to respond to the question of whether politicians should relieve employees of the high energy prices, for example through tax cuts. “The chemical industry, whose employees have an average annual income of 64,000 euros, should perhaps hold off on making demands on politicians,” said the BAVC negotiator.
Read the entire interview here:
Mr. Oberschulte, the IG BCE goes into the collective bargaining round without a precisely quantified wage demand. Is that a good or a bad sign?
The danger is that there are no upper limits to the imagination. IG BCE must be careful not to end up raising exaggerated expectations.
“Chemistry is booming,” says the union’s chief negotiator, Ralf Sikorski. Is that not correct?
This blanket statement does not do justice to the heterogeneity of our industry. We have had a small production increase of two percent in basic chemicals since 2018, in the rubber and plastics processing industry the bottom line is a minus of ten percent. And we mustn’t make the mistake of looking to a few big flagships with good results. The chemical industry consists of 80 percent small and medium-sized companies.
Companies that achieved less than three percent return on sales or made losses could postpone the second stage of the wage agreement from 2019. How many companies have used it?
That was exactly 30 of the 1,900 affiliated companies. Despite the pandemic, employers did not question the wage increases agreed before the crisis.
The trade union IG BCE wants to reach a collective agreement that maintains the purchasing power of employees despite the sharp rise in prices.
(Photo: obs)
The beginning of the collective bargaining round is marked by the highest inflation rates in decades. Does that play into the hands of the union?
If we take the currently overheated prices as a benchmark, then the area tariff is facing a crucial test. Inflation will fall, the only question is when and how quickly it will go down again. And the main driver at the moment is the high energy prices, which are affecting companies and employees alike.
Passing on price increases
Unlike employees, companies can pass price increases on to their customers…
This only applies to some companies. In a survey by the German Chemical Industry Association (VCI), 16 percent of the companies stated that they could not pass on increased prices at all, 67 percent only partially. In our industry, table-based fees have risen by 30 percent since 2010, while prices have risen by 20 percent. We certainly don’t have any catching up to do when it comes to wages.
Does politics have to relieve employees of the high energy prices, for example through tax cuts?
The chemical industry, whose employees have an average annual income of 64,000 euros, should perhaps refrain from making demands on politicians.
Read more about inflation and high energy prices
Shouldn’t wages rise sharply just because companies would otherwise not be able to find skilled workers?
In fact, the shortage of skilled workers has also arrived in our industry, even in the large companies. But attractive jobs are not only defined by the salary, but also, for example, by job security.
IG BCE wants companies to train more again to counter the shortage of skilled workers…
The union would like to commit us to a minimum number of apprenticeships. But the problem isn’t the lack of places, it’s the lack of applicants. Last year, seven percent of the vacant apprenticeship positions could not be filled.
Another union demand is an increase in night-time surcharges. How expensive will it be?
So far we have had surcharges of 15 percent for regular night work and 20 percent for irregular night work. The IG BCE calls for a uniform 25 percent and assumes that this ultimately accounts for 0.3 to 0.4 percentage points of the volume of transactions. We’re assuming it’s more likely to be twice as much because the irregular night work accounts for less than five percent and we would therefore have to go from 15 to 25 percent for the majority of shift workers.
More on this: Collective Bargaining – Inflation is fueling wage expectations