Labor organizations - Construction workers' unrest concludes with salary settlement
Around 30,000 construction workers went on strike back in Germany, causing quite some internal disputes among the employers. Recently, the IG Bauen-Agrar-Umwelt (a construction industry union) reached an agreement with the employers on a contract aimed at settling the wage dispute. This contract, valid from April 1, 2024, would span over three years and was intended to be reviewed by the committees until June 14th. During this time, both sides agreed to pause their labor conflict activities.
This agreement was initially based on the recommendations of mediator Rainer Schlegel for the first two years. After that, the eastern wages would be aligned with the western levels eight months earlier, exactly on April 1, 2026. Additionally, the lowest wage group 1 would also make a comeback as the minimum wage and will see a disproportionate increase.
In the initial stages, all monthly salaries would see an increase of €230, along with a 1.2% increment in the west and 2.2% in the east. For wage group 1, there would be a 2.2% raise in both regions, leading to a basic monthly salary of around €2500 for construction workers. In the second stage, there would be another 4.2-5.0% increase in the west and 4.2-5.0% increase in the east, as well as a 2.2% raise for the group 1 workers, effective from April next year. A year later, the western salaries would climb by 3.9%, and the eastern salaries would match the western level.
This last point was already planned in the previous collective bargaining agreement, which was supposed to occur in December 2026.
Robert Feiger, the head of the IG Bauen-Agrar-Umwelt, viewed this as a triumph of the warning strikes. "This outcome surpasses the arbitrator's recommendation, which we've always demanded," he said. "It was the construction workers who made this happen." He intends to suggest the union committees to accept this deal. The warning strikes saw around 30,000 IG BAU employees join in over the past two and a half weeks, seeking better salaries. They focused their strikes on companies in various locations, with the latest one being in Hamburg.
The employers seemed divided about the arbitrator's recommendation. Although many regional associations desired to agree with it, some didn't. In the craft-oriented Central Association of the German Construction Industry (ZDB), the required 85% approval was barely missed, leaving a small group to escalate the situation. On the other hand, the Main Association of the German Construction Industry (HDB) yielded to the arbitrator's suggestion, with all regional associations approving it.
Certain individuals in the IG BAU expressed their joy over the "workplace accident" that occurred in the employer camp, viewing it as the trigger that led to the strike, resulting in a more favorable deal. The union had already agreed to Schlegel's guidelines in the past, which recommended salaries to increase by €250 per month until May and then a 4.15% bump in the west and 4.95% surge in the east. However, this contract combines those increases with the quick alignment of wages between east and west.
Uwe Nostitz, the head of the employers' negotiations from ZDB, did mention a feeling of relief that the wage conflict was resolved peacefully. "The sooner our companies can collaborate with their employees to begin building again, the better it will be for the entire industry," he said. Jöris, ZDB's tariff manager, also pointed out the technical errors in the arbitration decision. Thankfully, these have been fixed now.
However, the ZDB has now started a debate regarding the relevancy of the arbitration statute. Meanwhile, Beeke, the HDB Vice President, highlighted the three-year contract length. "[It] provides companies with the required planning security in times of challenging order conditions."
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- The tariff dispute in the main construction industry led to a significant strike involving over 30,000 workers in Germany.
- The IG Bauen-Agrar-Umwelt, a construction industry union, and the employers reached a collective agreement to settle the wage dispute.
- The agreement includes a three-year contract, with regular reviews until June 14th, followed by a pause in labor conflict activities.
- Initially, the contract is based on mediator Rainer Schlegel's recommendations for the first two years, with early alignment of eastern wages to western levels.
- From April 1, 2026, the minimum wage reintroduces for the lowest wage group 1, with a substantial increase.
- In the first stage, all construction workers will see salary increases, including a €230 increment and higher percentage raises in the east.
- Trade unions in Frankfurt and other locations supported the warning strikes, which led to around 30,000 IG BAU employees participating across various locations.
- After the peaceful resolution of the wage conflict, Uwe Nostitz from ZDB expressed relief and mentioned technical errors in the arbitration decision that have now been addressed.
- Beeke, the HDB Vice President, commended the three-year contract length, providing companies with much-needed planning security in challenging order conditions.
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