Labor action in the building sector
The construction sector is a significant job provider in Germany, and the IG BAU union is pursuing higher wages. The union views an arbitrator's decision as a win, but the employers are hampering it.
Next week, the IG BAU union will initiate strikes in the major German construction sites, initially affecting unnamed locations in Lower Saxony. Further targeted strikes are planned for Tuesday all around the country. The collective bargaining negotiations halted when the two associations representing the employers, the ZDB and HDB, declined to accept an arbitrator's ruling.
The choice of Lower Saxony is due to employers there, along with some other regions, preventing the implementation of the arbitrator's decision. A central rally is scheduled in Osnabrück on Monday.
IG BAU had accepted the reconciliation award
The employers contested the arbitrator's recommendation. The recommendation contained mistakes and did not consider the industry's challenging economic situation, they argued. IG BAU, on the contrary, had accepted the arbitrator's decision penned by former president of the Federal Social Court, Rainer Schlegel. In accordance with this, wages were to rise by a €250 flat rate in May and further by 4.15% in the west and 4.95% in the east in 11 months.
Recently, the employers entail voluntary salary boosts for workers. The HDB and ZDB, employers' associations, have suggested a 5% raise in the west and 6% in the east. The minimum wage group 1 should also increase to €14 per hour nationwide starting May 1st. The proposal is more generous than the prior employers' salary demands prior to arbitration.
The HDB condemned the announced strikes. "For our companies, each day without construction incurs economic damage, particularly in the uncertain residential construction market," said Tim-Oliver Müller, HDB's managing director, when asked. "This economic damage also impacts our employees, who are essential to us." It's crucial to re-start negotiations with IG BAU as soon as possible. "In the meantime, we should refrain from further provocation since this will not benefit the employees."
"Employers have not taken advantage of their opportunity"
"The employers have not taken advantage of their opportunity and have disregarded their responsibilities," explained Robert Feiger, Federal Chairman of the union, in Frankfurt. The strikes will automatically become more expensive for the companies: "We're now back to demanding our original request for €500 more per month for all employees."
With about 930,000 workers, the construction sector is one of the largest employers in Germany and a vital element of the German economy with a €162 billion turnover in 2023, according to the industry association ZDB. The sector supported the economy for years during the real estate boom but transformed into a problematic sector due to the residential construction crisis.
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The strikes in the construction industry, initiated by IG BAU, are causing concerns among employers, particularly in Lower Saxony and other affected regions. The employers argue that the arbitrator's decision, which led to the strikes, is not considerate of the industry's economic situation.
Despite the employers' associations, ZDB and HDB, proposing more generous wage increases than their initial demands, the strikes in the construction industry continue to disrupt the sector, causing economic damage to both companies and employees.
Source: www.ntv.de
