German chemical industry wage talks collapse as crisis deepens
Wage talks for Germany's chemical and pharmaceutical sector have paused after just two days. The negotiations, covering 1,700 companies and 585,000 workers, hit a standstill over how to handle the industry's deepening economic troubles. Employers and unions remain far apart on solutions for pay, job security, and long-term survival.
The dispute centres on sharing the burden of years of decline. Employers warn that without major changes, more plants could close, while unions push for stronger protections beyond wages alone.
Matthias Bürk, lead negotiator for the BAVC employers' group, described the industry as facing a fundamental shift in wage policy. He stressed that companies need relief to recover competitiveness, calling for a pause in wage pressure to allow firms to reposition themselves. According to Bürk, the sector has lost a fifth of its output since 2018, with one in four production sites now sitting idle.
Since 2018, 142 of the 1,700 firms in the chemical-pharmaceutical industry have announced plant closures or shutdowns. Bürk argued that job security cannot simply be guaranteed by agreement—it depends on restoring the sector's financial health. He warned that years of losses mean there are no profits left to distribute, leaving little room for wage increases.
The IGBCE union, however, is demanding binding collective measures to protect jobs, not just higher pay. They want guarantees that go beyond salaries to prevent further site closures and redundancies. Bürk countered that the best way to secure German jobs is through an urgent plan to improve competitiveness, not rigid rules.
Talks will resume in Wiesbaden on February 23 and 24, with both sides under pressure to find a compromise. The outcome could shape the future of an industry already shrinking rapidly.
The stalled negotiations highlight the severity of the crisis in Germany's chemical sector. With output down sharply and plants closing, the next round of talks will determine whether employers gain flexibility or unions secure stronger job protections. The result may decide how many of the remaining 1,700 companies can survive the coming years.
