Jump to main content
IndustriALL logotype
Article placeholder image

Youth Job Guarantees Won by IGBCE in German Chemicals Agreement

Read this article in:

3 May, 2010

The ICEM German affiliate, IGBCE, accomplished substantive commitments for youth apprenticeship positions inside an 11-month national labour agreement with the chemical employers’ association, the BAVC. Those commitments will carry over for the next three years, and will mean another 27,000 young people will have career opportunities in Germany’s keystone chemicals industry through apprenticeships.

The 11-month length of the contract is a concession to chemical employers, with hopes that all 1,900 enterprises will regain solid financial footing before the IGBCE and BAVC resume bargaining for wage increases early in 2011. A wage freeze takes effect now for 550,000 workers, with ratification bonuses awarded instead.

IGBCE President Michael Vassiliadis

“It is a good conclusion” for the present, stated IGBCE President Michael Vassiliadis. “It is fair considering the varying conditions in the industry and it helps build a bridge between the economic crisis and recovery.”

Foremost in the new accord is a social-partners commitment for life-long job opportunities for young people, which includes €25 million in money provided by companies of the industry. The employers agreed to create 1,000 permanent jobs for young people in each of three years, with the fund used to subsidize companies at €1,000 per month for each worker given a permanent position.

The IGBCE negotiated the requirement that subsidies can only be given for workers that are IGBCE members.

The ratification bonuses, to be included in workers’ salary pay checks this month, amount to €550 for day-shift workers, €611 for workers on five- or six-day swing shifts, and €715 for night-shift and workers required to work across seven days per week.

Workers in enterprises that have not suffered due to the economic crisis will receive a further €200 bonus on top of their stipends. For enterprises still facing difficulties, and with the consent of the respective European Works Councils, the overall bonus can be reduced, but not below €300.

Peter Hausmann, IGBCE Governing Board member, who heads the union’s Collective Bargaining Department, said the new collective agreement reflects a stronger set of initiatives created by social partners for the industry. We have created “new perspectives created for young people,” as well as better job security provisions for existing workers, said Hausmann.

The agreement was reached on 21 April in Würzburg, following two days of national talks.