Collective bargaining failed
There is a strike in construction
May 13, 2024, 10:30 a.m
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The construction industry is one of the largest employers in Germany, and IG BAU is fighting for better pay. The union considers an arbitrator’s decision a success, but the employers block it.
The IG BAU union has called for strikes in the construction industry on Monday at several, as yet unnamed, locations in Lower Saxony. On Tuesday, further strike actions will follow “selectively” across the country, a union spokesman said. The collective bargaining negotiations failed due to the rejection of an arbitrator’s decision by the two negotiating employer associations, the Central Association of the German Construction Industry (ZDB) and the Main Association of the German Construction Industry (HDB).
Lower Saxony was chosen because the employers there, along with some other regions, prevented the arbitrator’s decision from being implemented, according to the union. A central rally will take place in Osnabrück on Monday.
IG BAU had accepted the arbitrator’s decision
The employers rejected the arbitrator’s decision. The criticism was that the recommendation contained formal errors and did not take into account the difficult economic situation in the industry. IG BAU, on the other hand, accepted the arbitrator’s ruling from the former President of the Federal Social Court, Rainer Schlegel. After that, incomes should increase by a flat rate of 250 euros in May and eleven months later by another 4.15 percent in the west and 4.95 percent in the east.
In the meantime, employers want to voluntarily increase employees’ wages. The Main Association of the German Construction Industry (HDB) and the Central Association of the German Construction Industry (ZDB) have suggested that companies add 5 percent in the West and 6 percent in the East. The lowest wage group 1 should also increase nationwide to 14 euros an hourly wage on May 1st. The proposal is higher than the employers’ offer in the collective bargaining negotiations that preceded the arbitration.
The HDB criticized the announced strikes. “For our companies, every day that no construction takes place means economic damage in an already uncertain situation, especially in residential construction,” said association general manager Tim-Oliver Müller when asked. “A damage that also comes at the expense of our employees, who are indispensable to us.” It is now important to quickly re-enter talks with IG BAU. “Until then, further agitation should be avoided, as this will not help the employees.”
“Employers didn’t take advantage of their opportunity”
“The employers have not taken advantage of their opportunity and have not fulfilled their responsibility,” explained the federal chairman of the union, Robert Feiger, in Frankfurt. Now it will automatically be more expensive for the companies: “We are now striking again for our original demand for 500 euros more per month for all employees.”
With 930,000 employees, the construction industry is one of the largest employers in Germany and, with sales of around 162 billion euros in 2023, according to the construction industry association ZDB, an important pillar for the German economy. The industry had supported the economy for years during the real estate boom, but now it has become a problem child due to the crisis in housing construction.