Germany - Collective agreement in chemical industry - November 30, 2019

On 22 November 2019, the Mining, Chemicals and Energy Union (IG BCE) and its counterpart on the employer side, the BAVC, concluded a new collective agreement covering 580,000 employees in the German chemical and pharmaceutical industry. The innovative agreement, which runs for 29 months, includes the following key elements: first, a staged pay increase varying over time from 1.5% to 1.3%; second, the creation of an ‘account for the future’ which provides employees with the choice between additional pay increases or more time off; third, the introduction of an employer-financed, long-term care insurance. According to the IG BCE, the value of the whole package equals a pay increase of 6%.

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