Status: 10/18/2022 2:55 p.m
Quick agreement between the union and the employers: More than half a million employees in the German chemical and pharmaceutical industry will receive substantial wage increases and one-off payments.
The trade union IG BCE and the employers’ association BAVC have agreed on a new collective bargaining package for employees in the chemical and pharmaceutical industries. The approximately 580,000 employees are to receive special payments totaling 3,000 euros per head. The one-off payments are then tax and duty-free as inflation money and are paid out in two steps of 1500 euros per person: in January 2023 and January 2024 at the latest.
In addition, there are two permanent table-effective salary increases of 3.25 percent each. These wage increases will also take place in two stages: there will be an increase of 3.25 percent from January 2023 and a further 3.25 percent from January 2024. Companies in economic difficulties can postpone the two steps of the wage increase by up to three months by means of company agreements. The package is valid for 1900 companies.
Conclusion with a signal effect
“With this result, we are maintaining the balance between the competitiveness of the company and the interests of our employees,” said Kai Beckmann, President of the BAVC. “This agreement has a signal effect beyond the industry,” said IG-BCE boss Michael Vassiliadis: “It proves that well-done tariff policy can be a central building block of a society-wide bulwark against inflation and energy war.”
As early as April, IG BCE and BAVC had agreed on a partial settlement as a bridging solution due to the uncertainty surrounding the Ukraine war and the high inflation, which expires at the end of October: a one-time payment of 1,400 euros per employee and 1,000 euros per head for companies in economic difficulties .
Largest German gas consumer
Collective bargaining was also affected by the gas crisis, which is causing particular problems for the energy-intensive chemical and pharmaceutical industries. The industry can only pass on the high prices for gas and electricity to customers to a limited extent. With a share of 15 percent, it is the largest German gas consumer and accounts for almost a third of industrial consumption. The deal in the chemicals and pharmaceuticals industry could signal how other industries are dealing with record inflation.