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German Chemical Pay Talks Adjourned After Second Round Fails to Reach Deal

Negotiators are weighing a Demofonds top-up that would finance company-level measures to prevent layoffs.

Overview

  • IG BCE and employer association BAVC ended the second-round talks in Wiesbaden without agreement, with negotiations to resume on March 24–25 in Bad Breisig.
  • IG BCE entered this round without a percentage wage demand, linking protection of real incomes to binding steps on employment security.
  • BAVC is urging wage restraint after sizable increases in 2024–25, noting an average annual salary of €76,000 and arguing companies need a breather to restructure.
  • The emerging concept would add a fixed per‑employee payment to the sector’s Demofonds to fund measures such as reduced working time with partial wage compensation, with use decided by works councils and management.
  • Talks are set against a prolonged industry slump with production at a 20‑year low, capacity use near 70 percent, and unions warning of tens of thousands of threatened jobs as IG BCE plans workplace actions absent progress.