2023/2024 Wood and Plastics Collective Bargaining Round Decision to terminate collective bargaining agreements

Collective bargaining in the wood and plastics processing industry is moving forward: By Wednesday of this week, all bargaining committees had decided to terminate the collective bargaining agreements as of the end of November. The demands are currently being discussed at the workplaces. These are to be finalized by the respective district bargaining committees by October 8. The final demands will then be submitted to the employers, although there may well be minor regional differences.

Discussions at the workplaces show that a permanent pay increase that provides financial relief is a top priority for many. This is also confirmed by an IG Metall survey conducted at the workplaces: 63 percent of those surveyed support a demand of over 8 percent. To that end, over 71 percent of our colleagues are already prepared to take to the streets to demand their demands once the peace obligation ends.

This stance is understandable: Because hotels were closed and fear of infection was high, vacationing at home became increasingly attractive. Manufacturers of travel trailers and motorhomes were able to benefit from this. For many workers in the wood and plastics processing industries, this meant working overtime to the absolute limit to fulfill orders for panels, prefabricated homes, windows and doors, new kitchens, furniture, and recreational vehicles.

Employees have received little recognition for these extraordinary efforts. Many companies still have full order books—yet even here, the crisis triggered by the outbreak of the war of aggression in Ukraine and the high inflation rate are slowly making themselves felt. The wood and plastics sector is reporting lower sales compared to the previous year. The capacity built up by the industry is not being fully utilized due to consumer reluctance.

Counteracting the Skilled Labor Shortage with Good Wages

However, a look at the economic data also shows that, despite the slowdown in sales, the wood and plastics processing sectors cannot afford to be unattractive in terms of wages and salaries. There is already a labor and skilled worker shortage in these sectors. Over the next 10 years, nearly 25 percent of employees will leave their companies due to the aging workforce. Companies are not prepared for this.

This fall, collective bargaining negotiations will really pick up steam: Following the recommendations from the bargaining committees, the IG Metall executive board will officially adopt the demands at the end of October. Employers and IG Metall will meet for the first time to negotiate by December. The peace obligation ends on January 12, 2024. Warning strikes will then be possible.