Germany's BDSI confectionery organisation brokers pay deal for thousands of Bavarian workers - Confectionery Production

Posted: 16 October 2024

Related topics: agreement, confectionery, industrial action, inflation, manufacturing, pay deal, strategy, strikes

Related people: Dr Mario Mundorf

Related regions: europe, germany, worldwide

Germany’s BDSI confectionery sector organisation, along with the NGG food and restaurants union have reached a financial settlement in a key industry workers dispute over pay, with a two-stage agreement for a 7.5% pay deal being negotiated, writes Neill Barston.

According to local reports, nearly 6,000 employees in the region had notified employers that they were to strike this summer, including at gummy bear maker Lorenz Snack-World, chocolate business Brandt Zwieback-Schokoladen, Piasten, as well as gingerbread manufacturer Lambertz and Lebkuchen Schmidt and Weiss.

However, the BDSI and NGG have this week reached a collective agreement for employees in the confectionery industry in the Bavarian collective agreement area in the third round of negotiations, which took place on 15 October, with the deal covering a term of 22 months (July 1, 2024-April 30, 2026).

As previously reported by Confectionery Production, among the main factors that confectionery sector workers had expressed concern over beyond a perceived lack of pay, were factors impacting businesses and individuals including higher energy, material and ingredients costs, that have placed an ongoing strain on many enterprises within the region.

Notably, the BDSI said the new pay deal would see wages increase by a total of 7.5% in two stages. For the period July 1st. The previous tariff rates will be reinstated by September 30, 2024. From October 1st, 2024 to August 31st, 2025, the tariff fees will increase by 5% (at least €145) and from September 1st, 2025 to April 30th, 2026 by a further 2.5%. In addition, employees will receive an inflation compensation bonus of €500 (trainees €375) in October 2024; part-time employees will receive a pro rata bonus.

The trainee salary will be increased by €100 on October 1st, 2024 and by a further €50 on September 1st, 2025. The trainees receive two days off each for AP I and AP II. Information about a possible takeover will be provided with a notice period of 12 months before the regular end of the training.

According to the BDSI’s assessment, the collective agreement is a balanced compromise. “The companies in the German confectionery industry stand firmly behind their employees, whose excellent work is of great importance. We welcome the fact that, after intensive negotiations, we have succeeded in reaching the first collective bargaining agreement in the confectionery industry in 2024 in the Bavarian collective bargaining area,” explains Dr Mario Mundorf, managing director of collective bargaining policy at the BDSI. “The term of 22 months gives companies and employees planning security for income until April 2026 in a difficult economic environment.”