Third round of negotiations in chemistry: rising wages or standstill?

Third round of negotiations in chemistry: rising wages or standstill?

The third round of negotiations for the collective agreement in the chemical industry began in Vienna on April 23, 2025. Around 50,000 employees from this sector are affected by the negotiations. So far, the unions have not presented any specific wage demands and no percentage offer has been presented by the employers. According to vienna.at, the employee representatives are threatening works meetings if an agreement is not reached.

The unions are calling for a sustainable overall package with real wage and salary increases. Particular attention should be paid to taking low incomes into account. Employers, on the other hand, point to the difficult competitive situation and the high wage and energy costs, which strongly influence their negotiating position.

Economic framework conditions

The current economic conditions are under the shadow of a long-lasting recession. The industry has been in a particularly tense situation since the beginning of 2023. While inflation is 2.8 percent in April 2025, it was significantly higher at 6.8 percent in the previous year. This illustrates the tense economic conditions under which the unions and employers are negotiating wages and salaries in the spring wage round. This not only includes the chemical industry, but also extends to the electrical, glass and paper industries, with a total of almost 125,000 employees, as the press reports.

Employers, such as Robert Tencl, CEO of Traktionssysteme Austria, say that they have to struggle with the income increases of previous years. In particular, the sharp rise in material prices and energy costs, which have doubled compared to the pre-war years, are placing a considerable burden on companies.

Outlook on collective bargaining

Negotiations for around 60,000 employees in the electrical and electronics industry begin on Friday. The unions have announced that they will initially keep their demands secret and are aiming for inflation compensation. Employers, on the other hand, expect the negotiations to proceed moderately. In addition to the chemical and electrical engineering industries, the recession is also affecting the glass and paper industries, meaning that holes in the pockets of workers in these sectors also have to be filled.

The uncertainties caused by the ongoing war in Ukraine and the associated energy crises are increasing concerns in the negotiations. At the same time, employers warn of possible wage-price spirals that could be triggered by excessive wage increases. The context of these collective bargaining rounds is also characterized by a difficult economic environment in which wage agreements must be requested gradually. According to Tagesschau, a collective bargaining dispute and possible labor disputes cannot be ruled out, as the positions between unions and employers differ greatly.