The 550,000 employees in the chemical industry will see their remuneration rise by 4.5%, with a one-month deferral in the increase. The tariff agreement will run for 19 months. This was agreed after two days of tough negotiations in Berlin between the Chemical Industry Employers’ Association BAVC and the Mining, Chemicals and Energy Union IG BCE. The rise will apply from month two, but may be delayed for up to another two months for economic reasons in instances where a works agreement is reached. Companies have the option of allowing employees to share in their economic success in month one.
For the first time a demographic corridor has been agreed that will make it possible to agree weekly working hours of between 35 and 40 hours on an individual and collective basis where this is appropriate for demographic reasons. Companies will also be investing more than EUR 200 million by 2015 to extend working time arrangements to suit each phase of life.
The elements of the tariff package in detail:
Salary increase: 4.5% for 18 months after a one-month wage standstill
Tariff remuneration for employees in the chemical industry will rise by 4.5%, with a one-month deferral in the increase. Apprentices will enjoy a disproportionate EUR 50 increase to make the industry more attractive for those starting their career. The increase will take effect on July 1, 2012 in the tariff districts of Hessen, North Rhine and Rhineland-Palatinate. In the Baden-Württemberg, Bavaria, Berlin (West), Bremen, Hamburg and Schleswig-Holstein tariff districts and in Lower Saxony and Westphalia, it starts on August 1, 2012. In Saarland and the tariff district East, the start date is September 1, 2012. The district remuneration agreements each run for 19 months and expire at the end of December 2013, January 2014 and February 2014 as the case may be.
Working time: demographic corridor to provide more flexibility
For the first time a demographic corridor has been agreed that will make it possible to be more flexible in structuring weekly working hours for demographic reasons. This provides for the option to agree on a working week of between 35 and 40 hours under a voluntary company agreement or subsequent individual arrangement. Management and trade unions will not need to grant their consent where this is used for individual employee groups. Working hours in excess of the regular 37.5 hours per week will normally be compensated with time in lieu, but may be paid.
Over EUR 200 million for working time arrangements to suit each phase of life
In addition to the existing demographic fund, companies will also invest EUR 200 per tariff employee between 2013 and 2015 in a company fund to finance instruments that permit working time to be structured to suit each phase of life. This can be used for such purposes as long-term working hours accounts, the new "Reduced Fulltime 80" model and other appropriate ways to encourage working arrangements suitable to each phase of life, including for seniors. The employer and employees at each company will be able to decide on how the funds are used. The amount may be reduced by up to EUR 100 in total for economic reasons.
New option model "Reduced Fulltime 80" – conversion of age-related working hours reductions
Age-related working hours reductions in the chemical industry (a 3.5 hour reduction for shift workers after the age of 55 and for others, a 2.5 hour reduction from the age of 57) can be used in future to work for longer and more flexibly. In the Reduced Fulltime 80 model, employees contribute their existing entitlements to age-related working hours reductions. At a later date they receive a 20% reduction in working hours with monetary compensation. This compensation will be financed by the age-related working hours reduction contributed and the new company fund, as long as it has cash available.
When they contribute their age-related working hours reduction, employees initially continue to work full time; the company therefore has extra labour capacity for several years. For their part, employees enjoy a greater reduction in hours at the end of their working life. The employer and employees at each company decide when working hours should start to be reduced.
Alternatively, they may agree that the money for working hours reduction can be used at particular phases of life, e.g. to make it easier to combine work and family life. Where this is the case, the monetary compensation will be decided at company level.
Bringing on the next generation: making the industry more attractive
To make the chemical industry even more attractive for young people starting their career, social options are being expanded. The industry is keen to take steps towards dealing with the looming shortage of young specialists by offering opportunities for young people not yet ready for an apprenticeship, a good level of training, secure prospects on completion, regional job-finding platforms for apprentices who cannot be offered a position upon completing their training and the new offering "Professional Compass Chemistry."
Lead negotiator Hansen: "A fair compromise after tough negotiations"
Hans-Carsten Hansen, the lead negotiator for the BAVC, said: “The negotiations were tough, but fair and constructive. Ultimately, we achieved our objectives: a realistic compromise on remuneration and more flexibility in working hours. We went to the absolute limit with remuneration. However, we were able to limit the cost burden by means of the length of the agreement, the deferral month and the variable introduction of the higher tariff. This gave us the desperately needed room to manoeuvre for small and mid-sized companies and many downstream processing operations.”
He added: "We have made substantial progress in the area of demography and working hours. The demographic corridor will create more flexibility for companies and employees. The Reduced Fulltime 80 option allows companies to keep more capacity for the time being and offer a greater step down for senior employees later. This will mean we can work longer and more flexibly in future. This is a smart switch in the way working hours are handled. After this tariff round we also want to develop a new ground plan for working time arrangements to suit each phase of life. Demography is a long-term issue for both employers and employees.”
BAVC Chairman Voscherau: "A strong tariff policy from strong social partners"
The Chairman of the BAVC Eggert Voscherau described the agreement as "an important signal that goes beyond the industry itself. At an extremely uncertain time, we are ensuring that companies enjoy calm, predictability and planning certainty. We have not allowed ourselves to be carried away by the politically-charged, overheated atmosphere surrounding tariff negotiations. We stuck to our guns and reached an agreement specific to our industry. This is important for our industry, important for Germany and important for Europe."
"By reaching this tariff agreement we are meeting our shared responsibility for the future of the industry: the employees are enjoying a fair share of the industry’s business success, which is a plus point at a time when there is stiff competition for scarce skilled labour, and we are also helping to bring about a much needed change of mentality on working hours in a society that is ageing. This is a strong tariff policy from strong social partners," Voscherau concluded.