The current landscape in these sectors is challenging due to multiple factors. Expensive energy and CO2 pricing have placed vast pressure on energy-intensive manufacturers, with some facing the risk of imminent closure. Thousands of workers fear for their jobs while grappling with the ongoing cost-of-living crisis.

Many companies are operating below normal capacity, with the chemical industry’s utilisation rate at only 70%. In contrast, some producers, particularly in the pharmaceutical sector, are experiencing booming profits. Despite these varying conditions, IGBCE and its counterpart, BAVC, successfully negotiated a deal after several protracted rounds of talks. 

At the outset, the employers called for a wage freeze, asserting that there was nothing to redistribute. However, according to the agreement, wages will increase in two stages: first by 2.1% in January 2027 and later by an additional 2.4% in January 2028. Companies that are performing well can bring forward both pay rises by three months. 

On top of the wage increase, employers will provide a bonus of €300 per worker (€150 for apprentices) both in 2026 and 2027. This bonus will be allocated to a sector-specific fund aimed at job retention measures, such as retraining projects, reduced hours, or site security initiatives. This solidarity mechanism, known as the Chemical Industry Demographic Fund, was established in 2010 to help companies better address demographic changes and shortages of skilled labour. More than €350 million will be invested in job security over the next two years. Companies that are performing well can pay out part of or the total amount, subject to an agreement with the works council.

“This is a ‘crisis agreement’ that pushed us to the limits,” comments IGBCE President Michael Vassiliadis who also serves as President of industriAll Europe. “The economic developments of recent years have taken a toll on both the industry and its workers. The war in the Middle East has further exacerbated the situation for both sides. Finding a fair deal for all parties involved in such a complex situation was not easy.”

He added, “One thing is certain: with this agreement, the workers are making an advance payment – for securing their jobs and for more investment in Germany. Now, the government must deliver in accordance with its Chemicals Agenda 2045, and employers must launch an investment offensive to sustainably strengthen the industry. We will hold decision-makers accountable.”

"While IGBCE has protected purchasing power and jobs during the crisis, resilience in such turbulent times requires shared responsibility. Workers cannot be the only ones footing the bill,” said Isabelle Barthès, Deputy General Secretary of industriAll Europe.