Collective bargaining conflict: collective bargaining parties in the construction industry reach agreement

Wage conflict
Collective bargaining parties in the construction industry reach agreement

Members of the education and science union (GEW) and IG BAU demonstrate on the sidelines of the second round of negotiations in the wage conflict in the public service. Photo: Arne Dedert / dpa

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After tough negotiations, the bargaining parties in the construction industry can agree on wage increases in three steps. In addition, incomes in East and West are to be aligned by 2026.

The around 890,000 employees in the German construction industry will get more money in the future.

For the months of July to October 2021, you will receive a corona bonus of 500 euros in the west and 220 euros in the east, such as the industrial union Bauen-Agrar-Umwelt (IG BAU) and the main association of the German construction industry and the central association of the German construction industry early on Friday morning informed.

The tariff package also provides for wage increases for employees in three steps. The collective bargaining partners in the construction industry agreed on this after five rounds of negotiations and two rounds of arbitration. The previous collective agreement expired in June.

As of November 1, 2021, incomes in the west will be increased by 2 percent and in the east by 3 percent, as it was said. On April 1, 2022 there will be a further increase of 2.2 percent (east: 2.8 percent) and on April 1, 2023 by a further 2 percent (east: 2.7 percent). In addition, employees in the west will receive one-off payments of 400 euros as of April 1, 2022 and 450 euros as of April 1, 2023. In addition, a gradual increase in training allowances was agreed. The collective agreement has a term of 33 months.

In addition, it was stated in the new contract, according to the information, that a 100 percent equalization of western and eastern incomes as well as training allowances must be achieved in 2026. However, every company in the eastern collective bargaining area can also determine an east-west alignment earlier for its employees by means of an in-house collective bargaining agreement. The agreement also provides for compensation for the often long journeys made by employees to their construction sites.

The Federal Tariff Commission of IG BAU has to make a final decision in the next few days on the acceptance of the negotiated paper. The committees of the employers’ associations must also deal with this accordingly. The first collective bargaining round was in May.

IG-BAU chairman Robert Feiger says: “Our ideas for fairer pay for employees were definitely higher, but we can live with this compromise.” With the help of the arbitrator, “a strike at the last minute” had been averted for the time being. Now the way is clear for the immense tasks that are pending: Around 400,000 apartments have to be built in Germany every year, the order books of the construction companies are full.

The employer negotiator and Vice President of the Central Association of the German Construction Industry, Uwe Nostitz, said: “We had lengthy and difficult negotiations with a complex and sometimes new subject.” Construction Industry Vice President Jutta Beeke added: “We have succeeded in negotiating a comprehensive package and achieving a result that can ensure planning security in the company over a long period of time.”

dpa

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