Negotiation Poker in the Construction Industry: The Hour of Mediation Has Arrived

Negotiations in the German construction industry are on thin ice. Despite intensive discussions, no agreement is in sight for the approximately 930,000 employees. Talks will continue, and the tension persists: everything is still up in the air. This information was disclosed by a spokeswoman for the Central Association of the German Construction Industry. After three rounds of negotiations ended without results, the Industrial Union of Construction-Agriculture-Environment (IG BAU) felt compelled to officially declare the collective bargaining negotiations a failure. This led to the convening of a conciliation procedure that began in Wiesbaden under the leadership of Rainer Schlegel. Schlegel, who has acted as the former president of the Federal Social Court, is no stranger to finding solutions in collective bargaining disputes in the construction sector. IG BAU has made a clear demand: an increase of 500 euros per month for wages, salaries, and vocational training allowances, with a one-year collective agreement. In contrast, the employers presented an offer spread over two years, with salary increases of 3.3 percent in the current year and 3.2 percent in the following year. Robert Feiger, the chairman of IG BAU, announced that the mood among the employees could be described as "explosive." He finds the current offer insufficient to prevent impending strikes and recommends that the employers significantly improve their offer. In response, Uwe Nostitz, the employer representative and member of the Central Association of the German Construction Industry, pointed to the current crisis in the primary construction industry, especially in housing construction, which is currently characterized by significant decreases in orders. The employers see a completely different viewpoint from the union. Further developments are to be awaited – the arbitration could be both a turning point and a spark in the tense wage disputes.