New agreements signed in east German chemicals industry
Published: 27 December 1998
On 1 December 1998, the Mining, Chemicals and Energy Union (Industriegewerkschaft Bergbau, Chemie, Energie, IG BCE) and the employers' association for the east German chemical industry (Arbeitgeberverband Nordostchemie) signed new collective agreements for the 32,000 or so employees in the sector. The agreements, which will run until 30 June 2000, provide for a two-stage wage increase: from 1 January 1999, wages and salaries will increase by 3.7%; and from 1 January 2000, they will rise by 2.3%. Furthermore, all employees will receive a flat-rate payment of DEM 60 per month in respect of November and December 1998. According to IG BCE, the overall pay increase for the whole term is equivalent to 6.1%.
In December 1998, the social partners in the east German chemicals industry concluded new collective agreements which provide for a two-stage pay increase totalling 6.1%.
On 1 December 1998, the Mining, Chemicals and Energy Union (Industriegewerkschaft Bergbau, Chemie, Energie, IG BCE) and the employers' association for the east German chemical industry (Arbeitgeberverband Nordostchemie) signed new collective agreements for the 32,000 or so employees in the sector. The agreements, which will run until 30 June 2000, provide for a two-stage wage increase: from 1 January 1999, wages and salaries will increase by 3.7%; and from 1 January 2000, they will rise by 2.3%. Furthermore, all employees will receive a flat-rate payment of DEM 60 per month in respect of November and December 1998. According to IG BCE, the overall pay increase for the whole term is equivalent to 6.1%.
Vocational trainees will receive a flat-rate payment of DEM 160 in January 1999 and a 2.3% rise in vocational training pay from 1 January 2000. In addition, the collective bargaining parties agreed to create a joint forum for the promotion of vocational training in the east German chemicals industry. The new forum is intended to bring together the activities and initiatives of the existing regional forums in the six east German federal states.
Furthermore, from 1 January 2000 the east German collective agreements will introduce an "additional payment related to length of service" (Entgeltgarantie) for lower income groups, which will be equivalent to further wage increases of between 1.25% and 4.5%. These payments have long been a regular part of west German agreements and have now been partly introduced into eastern Germany.
The new east German chemicals agreements also repeat the "opening clause" in the west German agreement, which provides for the introduction of a "wage corridor". Under certain circumstances, this allows companies to reduce the collectively agreed wage by up to 10% for a limited period of time (DE9706216F).
Finally, the industry's collective agreements on partial retirement were renewed and extended until 2004. The collective agreements guarantee all employees at least 85% of the previous net income during partial retirement.
Eurofound recommends citing this publication in the following way.
Eurofound (1998), New agreements signed in east German chemicals industry, article.
