Chemical Industry Collective Agreement in Austria: Seventh Round of Negotiations Without Result, Strikes to be Expanded

In the week prior, the unions had already called for several two-hour warning strikes. These took place, among others, at Boehringer Ingelheim, in the Linz Chemical Park, at Lenzing, and at Octapharma. With the escalation of strikes, the employee side aims to increase pressure on the employer side, which has united behind the Federation of the Austrian Chemical Industry (FCIO).

The unions had temporarily reduced their official wage demand from 3.5 percent to 3 percent to get the negotiations moving. However, the employer side presented an offer that, from the perspective of the union negotiators, is insufficient. Hubert Bunderla of PRO-GE and Mario Mayrwöger of GPA described the offer as "more than outrageous" and accused the employers of contempt towards the employees.

Employer Side Defends Against Accusations

According to the unions, the employers' offer provides either 0.5 percent plus a one-time payment of 300 Euros or, alternatively, 2 percent, with the latter only effective from October 2026 to April 2028. "This would correspond to an annual increase of only 0.79 percent," calculated the employee negotiators. They see this as a significant discrepancy compared to the economic situation of the industry and inflation.

From the FCIO's perspective, the negotiation evening proceeded differently. The Federation stated that the unions had ended the talks "for incomprehensible reasons" late in the evening and instead announced further strikes. Employer representative Ernst Gruber emphasized that strikes harm the location, but excessive agreements harm it even more: "Strikes harm the location, but excessively high agreements harm it even more."

Importance of the Chemical Sector in Austria

The FCIO justified its position by referring to the situation in Germany, where a zero-wage round had been agreed upon for the chemical sector for 2026. Gruber also pointed to massive job cuts: "In the fourth quarter of 2025 alone, we lost 600 jobs." This is intended to illustrate that the economic situation of the industry is strained and the scope for wage increases is limited.

Outlook: No New Negotiation Date

The Austrian chemical industry comprises around 230 companies with more than 50,000 employees. It operates in sectors such as pharmaceuticals, plastics and plastic products, fibers, paints, fertilizers, and organic and inorganic chemicals. The collective agreement was actually supposed to come into effect on May 1st.

Thus, the positions of the employer and employee sides remain far apart even after the seventh round. The unions threaten to intensify strikes, while the employer side sticks to its offer and points to the difficult economic situation. Both sides appear willing to escalate the conflict if necessary, and a new round of negotiations is not in sight for the time being.