Germany's Chemical Industry Faces Crisis as Wage Talks Collapse Over Job Cuts
Wage talks in Germany's chemical and pharmaceutical industry have stalled after just two days. The negotiations, covering 1,700 companies and 585,000 workers, hit a deadlock over how to address deep economic troubles. Employers and unions remain far apart on solutions for a sector that has lost a fifth of its output since 2018.
The dispute now centres on balancing job security with the urgent need to restore competitiveness. Both sides agree the industry is at a turning point—but disagree sharply on the way forward.
The chemical sector's struggles have worsened over the past five years. Production has dropped by 20% since 2018, leaving one in four plants idle. Around 25,000 jobs have vanished, with heavy losses in key regions like North Rhine-Westphalia, Hessen, and Sachsen-Anhalt. In Marl, Evonik cut 2,000 positions, while BASF in Ludwigshafen shed 2,600 roles.
Employers, represented by the BAVC association, insist that wage policy must change to help the industry recover. Chief negotiator Matthias Bürk called for a 'paradigm shift', arguing that job security depends on regaining competitiveness. He dismissed the idea of simply mandating employment guarantees, stating that real protection comes from a stronger market position.
The IGBCE union, however, is pushing for binding collective bargaining measures. Their focus extends beyond pay rises to include concrete safeguards for jobs. With no signs of economic improvement, the union wants to ensure workers are shielded from further cuts.
Talks will resume in Wiesbaden on February 23 and 24. Both sides acknowledge the severity of the crisis but remain divided on how to share the burden of decline.
The stalled negotiations leave 585,000 employees in limbo as the industry faces its worst slump in decades. Without a breakthrough, further job losses and plant closures could follow. The next round of talks will determine whether employers and unions can find common ground—or if the sector's decline will deepen.
