Strikes and the chemical industry – that’s something that doesn’t really come together. The last major industrial dispute in the industry took place in 1971, 53 years ago; At that time, around 30,000 workers went on strike for four weeks. But now something could be changing in chemistry – at least there are some signs pointing to this ahead of the collective bargaining round for 585,000 employees, which is gaining momentum in these weeks. The negotiator of the chemical union IG BCE, Oliver Heinrich, is bringing warning strikes into play. “If we don’t come close to a deal by the end of June, then we can make our demands clear in other ways,” says the SZ trade unionist. “Employers should actually know that labor disputes are part of our toolbox.”
The peace obligation in the chemical collective bargaining round ends on June 30th, and the first talks will take place in May. This Wednesday, IG BCE finally decided how much money it wanted to get out for the employees. It should be seven percent more per month; This is intended to close the gap that, according to the union’s calculations, inflation has torn into employees’ wallets. “That’s what our colleagues need,” says negotiator Heinrich – and announces that the deal must be at a similar level. “Demanding twice as much and then agreeing on the middle is not our style. We need a solution that compensates for the loss of real wages.”
Employers want a crisis closure
The climate between unions+++n and employers in the chemical industry was comparatively relaxed for many years because there was a lot to distribute. Whether at pharmaceutical, cosmetics or classic chemical companies like BASF: profits were bubbling and employees’ wages were rising with pretty regularity. But things have changed since February 24, 2022. The Russian attack on Ukraine led to an energy price shock – and this was particularly large in the chemical industry, as production there requires a lot of electricity and gas.
Energy prices have now stabilized again, but they are still significantly higher than in China and the USA. This fuels concerns that more and more corporations could outsource jobs. In addition, the chemical industry is suffering from the overall weak economy in Germany. The employers’ association BAVC warns that production has fallen by twelve percent since 2022, and this year things are hardly looking any better: 43 percent of companies only made low profits or were even in the red, according to a survey by the association. This only allows one conclusion, says managing director Klaus-Peter Stiller: “An industry in crisis needs a collective agreement for the crisis. And that is exactly what we will be working on with IG BCE in the next few weeks.”
However, their chief negotiator Heinrich sees it completely differently; Talking about an entire industry in crisis is wrong. “Some companies are struggling, that’s true.” But there are also many “crisis winners”, such as cosmetics and pharmaceutical companies; Overall, production is picking up again. The situation in traditional chemistry is not dramatic; this even applies to the industry giant BASF, which recently made a name for itself with its austerity programs. The Ludwigshafen-based group continues to pay out high dividends to its shareholders, argues Heinrich, and the situation is similar for many competitors.
According to SZ information, the different economic situations of the companies should be discussed in collective bargaining. The IG BCE then wants to bring into play the possibility of expanding the rules according to which companies can deviate from the collective agreement – for example by postponing wage increases if they make losses. According to the union’s wishes, there should also be a rule for companies that make particularly high profits: They should pay their employees more than other companies.
People are already thinking about which companies would be suitable for going on strike
However, the proposal is unlikely to pacify the emerging conflict. The tone between the two sides is harsher than usual this year. “Anyone who calls for a zero round, as the employers de facto do, is driving the employees into disarray without any need,” says trade unionist Heinrich. The employers, in turn, say rather coolly: “IG BCE did not take advantage of the opportunity to adapt its expectations for the collective bargaining round to the situation in our crisis-ridden industry.”
The fact that strikes in the chemical industry are becoming more likely is indicated not only by the rough climate of discussions but also by an incident in December. IG BCE terminated an arbitration agreement that had existed since 1982; it allowed a strike vote on strikes only after arbitration. “This narrows our strategic options and is no longer up to date,” says Oliver Heinrich. The termination takes effect at the end of June – just when the peace obligation in chemistry ends.
However, the collective bargaining board emphasizes that it is not aiming for strikes per se. “I stand for collective bargaining and objectivity.” However, he had to acknowledge that there was a certain “expectation” among the members. On the one hand, this comes from the wage losses caused by inflation, and on the other hand from the successes that other unions have achieved with industrial disputes, such as the train drivers’ union GDL and Verdi. “The strike waves of the recent past have not escaped them. There are quite a few who say: Let’s do it.” Regardless of specific collective bargaining rounds, IG BCE is currently modernizing its strike management – it must become faster, more flexible and more digital.
Heinrich is already familiar with strikes from his previous union life. As regional district chief in the northeast, he played a key role in the labor dispute at the Dresden chip manufacturer Globalfoundries, where the IG BCE won a collective agreement for around 3,200 employees there. In 2024 he became a collective bargaining officer – and meets Merck manager Matthias Bürk, a negotiator for the employers who is also new to this position. Apparently the trade unionist Heinrich has already thought about which chemical companies would be suitable for industrial action. “Strike locomotives could be companies that are barely able to function economically because of their strength. And there are many of them.”