New collective agreement signed in chemicals

On 16 June 2005 the bargaining parties in the German chemicals industry agreed upon a new package of collective agreements. A 19-month pay agreement provides for a 2.7% increase, plus an additional flat-rate payment equivalent to 19 times 1.2% of a months salary. The flat-rate payment can be cut or cancelled for economic reasons if the parties at company level - ie the employer and works council - agree to do so. Furthermore a new agreement has been signed on increasing the number of apprenticeship places by 1.6% in 2006 and 1.7% in 2007.

On 16 June 2005, after only two rounds of talks, the Mining, Chemicals and Energy Industrial Union (Industriegewerkschaft Bergbau, Chemie, Energie, IG BCE) and the German Federation of Chemicals Employers' Associations (Bundesarbeitgeberverband Chemie, BAVC) signed a package of new collective agreements for about 570,000 or so employees in the German chemicals industry. The package includes a new pay agreement and a new agreement on increasing the number of apprenticeship places.

The new pay agreement applies from 1 June 2005 (in some bargaining regions, from July or August) and has a duration of 19 months. With effect from 1 June 2005 (in some bargaining regions, from 1 July or 1 August), wages and salaries will increase by 2.7%.

There will be an additional flat-rate payment. This is equivalent to 19 times 1.2% of the collectively agreed monthly pay and will be paid on 28 February 2006.

There is, however, an 'opening clause' allowing the parties at company level - ie the employer and works council - to agree on deviations from the pay agreement as far as the flat-rate payment is concerned. This includes altering the payment date and the application of the payment. For economic reasons, the company-level parties may also agree on cutting or cancelling the flat-rate payment.

The bargaining parties agreed to continue the special provisions in the previous pay agreements that allow newly recruited employees to be paid at rates which are 5% below the standard rates, and permit 10% lower rates for all those who have been unemployed for at least nine months prior to recruitment (the latter provision applies only to western Germany). These lowered rates can be paid during the first 12 months of employment if the employment contract is open-ended.

Apprentices receive both the general increase and this flat-rate payment based on their remuneration which had been frozen in 2004.

For eastern Germany, the bargaining parties in chemicals have agreed basically on the same package of agreements, though with additional increases in line with a previous agreement (DE0205204F) to adjust pay rates in eastern Germany to the western German level by 2009.

In line with previous agreements to promote an increase in apprenticeship and similar training at company level in chemicals (DE0406205F) the bargaining parties have agreed to a rise in the number of apprenticeship places. The sector's employers have thereby committed themselves to increasing the total number of apprenticeship and training places (Ausbildungsplätze) in western Germany by 1.6% in 2006 and 1.7% in 2007.

The bargaining parties did not reach consent on the demand of the trade union to introduce a special exclusive bonus for trade union members.

Just as in previous years, the lack of confrontation remained a notable feature of collective bargaining in chemicals. Both bargaining parties showed content with the outcome.

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