Collective bargaining - Chemicals collective agreement: Bonus days for trade unionists
In the chemical industry wage negotiations, IG BCE and employers have agreed on an additional free day only for union members. For the first time, this was agreed upon in a large-scale collective bargaining agreement, alongside general wage increases of 6.85 percent excluding benefits for union members. Union members must disclose their membership to the employer and receive an extra day off on membership anniversaries.
The goal of the agreement is to increase tariff binding, both parties announced on Thursday. In practice, collective agreements generally apply only to union members. Employers often apply them to all employees, which can lead to resentment over "free riders" who enjoy the benefits without paying union dues. These amount to roughly 1% of the average monthly gross income for IG BCE members.
The member bonus was a simple solution, according to the IGBCE negotiation leader Oliver Heinrich. "This way, we're opening a new chapter in tariff policy." He expressed hope that in companies, there would no longer be a search for special solutions. "We trust each other," said IG BCE CEO Michael Vassiliades about the relationship with employers. Approximately 35% of the 585,000 tariff-bound employees are members of the union and are entitled to the bonus day. He hoped that this percentage would increase with the new rule.
The peace pact had expired on June 30
During the ongoing negotiations, employers emphasized that they did not want to divide the workforce. "For us, it's important that we don't undermine the principle 'equal pay for equal work'", said BAVC negotiation leader Matthias Bück. The bonus was a sign of appreciation and should reward the volunteer work of union members in their free time.
The negotiations, during which employers first presented an offer in the third nationwide round, were under time pressure. The peace pact had expired on June 30. After that, warning strikes would have been possible. Instead, protests took place outside working hours at several large chemical sites with thousands of participants. The parties also extended their previously announced mediation agreement, which still does not involve external arbitrators.
The union demand for a 7% wage increase was approximately fulfilled with 6.85% in two stages, but spread over a 20-month period. The first stage of 2% takes effect from September 1, while the second stage comes into force on April 1, 2025. This can be delayed by up to three months in individual companies due to economic reasons.
The signs point to growth again
Employers described the double crisis situation of the industry in the negotiation and demanded an appropriate settlement. The crippling conjuncture with weak demand and high import pressure is compounded by structural disadvantages such as high energy costs, high labor costs, and excessive bureaucracy.
At least in the important pharmaceutical sector, the signs are once again pointing towards growth. Orders from North America and Europe have caused sales to increase by nearly 5 percent in the first four months, as reported by the Chemical Industry Association (VCI) a few days ago. This was able to offset the weak domestic business. Production and prices showed slight gains. The prospects were assessed as stable to positive.
- In the chemical industry's collective bargaining agreement, Oliver Heinrich, the IG BCE negotiation leader, praised the agreed-upon member bonus as a new chapter in tariff policy.
- The labor dispute between IG BCE and employers in Bad Breisig was resolved with the inclusion of an additional free day for union members in the tariff-binding agreement.
- The bonus day for union members in Germany's chemical industry was introduced in response to employers' desire to prevent resentment over "free riders" and maintain equal pay for equal work.
- Employers in the pharmaceuticals sector, such as those in Bad Breisig, are facing challenges including high labor costs and import tariffs but are still experiencing growth opportunities.
- The chemical industry's wage negotiations resulted in an increase in tariff binding and union membership bonuses, benefiting approximately 35% of the 585,000 tariff-bound employees.
