Escalation in Construction Wage Dispute: Union Threatens Strike

© EULERPOOL NEWS·

The atmosphere in the German construction industry is tense. Just before the expiration of the peace obligation, the Industrial Union of Construction-Agriculture-Environment (IG BAU) signals its readiness to fight. If the employers do not accept the arbitrator’s ruling by the end of this deadline, a labor dispute is imminent. "Then there will be a strike! Then it'll really hit the fan," threatens Robert Feiger, Federal Chairman of IG BAU, during a rally in Bremen. The fronts in the wage conflict appear to be hardened. A glimmer of hope remains nonetheless. IG BAU views the acceptance of the arbitrator's ruling by the Bavarian Construction Industry Association last Tuesday as positive. Their CEO, Thomas Schmid, emphasizes the resulting significant cost increase but also acknowledges the performance of the employees, which is recognized by the proposed wage increases. The demands are clearly defined: After three unsuccessful negotiation rounds, the arbitrator Rainer Schlegel proposed a two-stage wage increase – starting with a flat-rate rise in salaries by 250 euros from May, followed by a percentage increase of 4.15 percent in the west and 4.95 percent in the east after eleven months. IG BAU had accepted this proposal, whereas the employers’ associations' negotiation committee voted against it immediately after the arbitration talks. The countdown is on: Until Friday, May 3rd at 2 pm, employers have time to accept the arbitration award. Otherwise, according to Feiger, there would be a return to the original demands of the union – an increase of 500 euros per month per employee. The Federal Chairman motivates his members to mobilize: "Fire up your companies and mobilize all colleagues." The industry, with about 930,000 employees, could experience significant impacts from strikes if no timely agreement is reached.

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