Collective bargaining for the more than 900,000 employees in the construction industry has failed. The IG BAU union also rejected the second offer. Now it’s time for arbitration.
Collective bargaining in the construction industry failed after the third round and is now going to arbitration. The employers did not make a negotiable offer, explained Carsten Burckhardt, federal board member of the Construction-Agrar-Environment Industrial Union (IG BAU). “Twice a little over three percent increase in income over 24 months simply does not compensate for the immense increase in living costs in recent years and months.”
The collective bargaining involves around 930,000 employees. IG Bau is demanding 500 euros more wages, salaries and training allowances per month for a period of one year. The construction industry, represented by the Central Association of the German Construction Industry (ZDB) and the Main Association of the German Construction Industry (HDB), recently submitted a second offer to the union. This provided for a wage increase of 3.3 percent for 2024 and 3.2 percent for 2025.
Sides disagree on the construction industry
“Germany is in a severe construction crisis,” explained Uwe Nostitz, negotiator for the employers and ZDB vice president. “Many construction companies in residential construction, the largest construction sector, are struggling with massive declines in orders.” The union completely ignores this reality of the construction industry and continues to stick to its main demand.
IG Bau federal board member Burckhardt, on the other hand, stated that it was not correct that the construction industry was doing poorly throughout. Civil engineering, infrastructure construction and public construction are on the rise, only the order situation for the construction of single and two-family houses has collapsed.
The collective bargaining negotiations are now going to arbitration. “The course of the negotiations was disappointing,” said Jutta Beeke, HDB Vice President. Based on “two well-founded offers,” the employers are now focusing on an “industry-appropriate solution.” A strike is only possible after a failed arbitration.