Germany - Bargaining compromise in chemical industry - March 31, 2026

After two days of negotiations, the IGBCE (Industrial Union of Mining, Chemicals and Energy) and the employers' association BAVC (Federal Association of Chemical and Pharmaceutical Industries) reached a nationwide collective agreement. The agreement covers 585,000 employees in the chemical and pharmaceutical industry and includes pay increases in two stages as well as contributions to job security. This is the first major industry-wide collective agreement. This year, € 300 per person will be paid into the chemical sectors’ demography fund earmarked for measures aimed at safeguarding jobs in the industry. In 2027, a 2.1% pay increase will follow, along with payment of another € 300 per person into the demography fund. In 2028, a further 2.4% pay increase will take effect. The new agreement has a term of 27 months, running until May 2028.

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