Real-terms increase in German chemical industry


The German chemical workers’ union, the IGBCE, has signed an agreement with the employers in Germany which provides a substantial real terms increase this year, and looks set to do the same in 2017.


The settlement, covering around 550,000 workers, was signed on 23 June. It runs for two years and provides a 3.0% increase in the first 13 months and a further 2.3% for the second period of 11 months. The starting date varies by region, from 1 August to 1 September, and companies in facing financial difficulties, can delay the increases by up to two months. 


With inflation running at 0.3% (June), the 3.0% increase delivers a substantial real terms improvement, and the total settlement of 5.3% is worth almost exactly the same as the German metalworkers’ agreement, reached in May. This increased pay by 4.8% in total, but over 21 rather than 24 months. 


As well as a pay increase, the two sides agreed a new programme to prepare young people for apprenticeships. The programme is directed at those who currently do not have the necessary qualifications to start an apprenticeship course, the gateway to higher-paid employment.


It is expected that young refugees in Germany will also benefit from the plan.


Michael Vassiliadis, president of the IGBCE, said the two-year deal meant that “employees have a share of the success of the chemical industry”.