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Pay Gains Achieved in East German Paper, Chemical Sectors

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4 August, 2005ICEM News release No. 29/2000

some 30,000 chemical workers in Eastern Germany and East Berlin are to receive a pay rise of 5.6 percent over two years, under an agreement signed by their union IG BCE on Saturday. Wages will go up by 2.8 percent on 1 July this year and a further 2.8 percent on 1 July 2001.

Another agreement last week secured a two-stage 6.2 percent rise over two years for around 5,000 East German paper workers.

West German workers in the same sectors will be receiving a two-stage 4.2 percent rise over roughly the same period under agreements signed earlier last month.

When Germany reunified, wages in the East were much lower than in the West. Under separate bargaining arrangements, the gap is gradually being narrowed.

The East German agreements extend the scope for part-time work by older employees, and guarantee them take-home pay equal to at least 85 percent of their last net full-time wage. There is also provision for expanding the number of apprenticeships available in the East German chemical and paper industries. The aim of both measures is to help reduce unemployment in Eastern Germany.

At the global level, IG BCE is affiliated to the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).