In the collective bargaining negotiations for the German chemical industry, IG BCE and employers agreed on an additional day off for union members only. For the first time, exclusive benefits for union members have been enshrined in a large collective agreement alongside the general salary increases of 6.85 percent. However, they must notify their employer of their membership and receive a second day off on membership anniversaries.

Collective agreement for chemical industry: 6.85 percent higher salary

The aim of the agreement is to increase collective bargaining coverage, both sides announced on Thursday. Strictly speaking, collective bargaining agreements generally only apply to union members. However, employers usually apply them to all employees, which has occasionally led to anger over “free riders” who enjoy advantages without paying membership fees to the unions.

In the end, a simple solution was negotiated for the member bonus, the benefits of which are immediately apparent to people and which does not place too much strain on companies, said IGBCE negotiator Oliver Heinrich. “This is opening a new chapter in collective bargaining policy.” He expressed the hope that companies would not now be looking for special solutions.

In the ongoing negotiations, the employers had also stressed that they did not want to divide the workforce. “It is important to us that we do not touch the principle of ‘equal pay for equal work’,” said BAVC negotiator Matthias Bürk. The bonus is a sign of appreciation and is intended to reward the voluntary work of the union members in their free time.

Salary increase in two stages

The negotiations, in which the employers only submitted an offer in the third nationwide round, were under time pressure. The peace obligation would have expired on June 30. After that, warning strikes would have been possible. So protests outside of working hours at several large chemical sites with thousands of participants remained. The parties also continued their arbitration agreement, which was terminated on June 30 and continues to operate without external arbitrators.

The union’s demand for seven percent more money was almost met with 6.85 percent in two stages, but was spread over a period of 20 months. The first stage of 2 percent will take effect on September 1, while the second step will come into force on April 1, 2025. This can be postponed by up to three months in individual companies for economic reasons.

During the negotiations, the employers described the dual crisis situation in the industry and demanded a suitable agreement. The sluggish economy with weak demand and high import pressure is encountering structural disadvantages such as expensive energy, high labor costs and excessive bureaucracy.

At least in the important pharmaceutical sector, the signs are pointing towards growth again. Orders from North America and Europe in particular have caused sales to grow by almost 5 percent in the first four months, as the Chemical Industry Association (VCI) reported a few days ago. This also made it possible to compensate for the continued weak domestic business. Production and prices rose slightly. The future outlook was assessed as stable to positive.