BAD BREISIG (dpa-AFX) - Difficult negotiations in a time of conflict: The third round of nationwide collective bargaining for approximately 585,000 employees in the chemical and pharmaceutical industries has commenced. The industrial union IG BCE and the employers' association BAVC are locked in talks in Bad Breisig, Rhineland-Palatinate, grappling over wage increases and job security amid a persistent economic downturn. The negotiations are scheduled to continue through Wednesday.
Talks were adjourned without result at the end of February, and the conflict in the Middle East has now added a layer of complexity to the proceedings. The chemical sector is particularly vulnerable to rising energy prices; it is a major consumer of oil and gas, while these commodities also serve as essential feedstocks for plastics, fertilizers, pharmaceuticals, solvents, and cosmetics.
Germany's third-largest industrial sector in crisis
While employers are insisting on wage restraint due to the crisis facing the chemical industry, IG BCE is seeking to secure jobs and achieve pay increases above the rate of inflation. Inflationary pressures are expected to mount following the outbreak of war in the Middle East. However, the union has refrained from naming a specific wage demand. The current collective agreement expired at the end of February.
The chemical and pharmaceutical industry ranks as Germany's third-largest industrial sector, following automotive and mechanical engineering. According to the industry association VCI, the sector generated revenues of approximately 220 billion euros in 2025. While the pharmaceutical segment continues to grow, the traditional chemical industry has long been mired in a slump, burdened by high energy costs, US tariffs, weak economic activity, and global overcapacity./als/DP/stw
