A new contract on wages and working conditions in the German chemical industry agreed by the chemical workers union IG BCE and the national chemical employers association BAVC on Feb. 5 calls for a linear pay increase of 3.7% over a 14-month period for 550,000 employees of 1,900 chemical and pharmaceutical companies.

The union had been seeking a rise of 5.5% over a 12-month period.
Industry apprentices also will receive more pay. Over the period 2014 to 2016, the employers have pledged to create 9,200 new apprenticeships per year.

The agreement will take effect retroactive to Feb. 1 in three federal statements. In the thirteen remaining states it will be put in place from Mar. 1 or April 1.

Both sides also agreed that companies in financial difficulty can postpone the increase for two months.

In separate statements, IG BCE and BAVC called the new contract "a reasonable and viable compromise."