Striking brewery employees in Saxony persist in their action
In the heart of Central Germany, a wage dispute between Saxon breweries and their employees, represented by the Food, Beverages and Catering Union (NGG), is causing ripples across the industry. The conflict, which has been ongoing since August 2022, shows no signs of resolution as striking workers continue to demand a 7 percent wage increase from their employers.
The key issues at the heart of this conflict revolve around wage levels, employer stance, negotiation breakdown, and the impact on production. The employees argue for a significant raise, citing below-satisfactory offers from the employers. On the other hand, the employers claim that wage levels are already high and point to falling beer sales as a justification against large pay raises.
Two rounds of negotiations have failed, with the union accusing employers of a blockade and unwillingness to compromise. The disputes have severely restricted delivery capacity, causing many markets and pubs in the affected regions to run out of products.
The NGG's demand for a seven percent wage increase does not align with the declining beer sales, a trend that is currently affecting Germany as a whole, with a seven percent drop in sales reported nationwide. Despite this, the union has threatened to extend strikes for another week if employers do not make concessions.
The wage gap between East and West in the industry is another point of contention. Employees in Saxony receive more than 4,000 euros less per year than their colleagues in the West. The employers' first offer did not include an adjustment of wages to the Western level.
The dispute has affected several breweries, including Sternburg, Wernesgrüner, and others. No new strike days have been ruled out, and employees from Sternburg Brauerei Leipzig, Krostitzer Brauerei, Radeberger Brauerei, Freiberger Brauerei, and the Wernesgrüner Brauerei participated in a demonstration at the negotiating site on Thursday.
As the dispute continues, around 250,000 hectoliters or almost 50 million bottles of beer could not be produced or filled. This could potentially lead to a shortage in beer supply, a concern given the high per capita consumption of beer in the Central German states, particularly in Saxony.
Uwe Ledwig, regional chairman and chief negotiator of the NGG, stated that the employers' offer is "moving, but not in the tank." Jens Loebel of the NGG added that the offer was far from their own ideas, with the union demanding seven percent more wages and 100 euros more for trainees.
As the negotiations continue, both parties will need to find a compromise to avoid further disruptions in production and supply. The future of the beer industry in Saxony hangs in the balance.
The ongoing wage dispute between the NGG and Saxon breweries, rooted in wage levels, employer stance, and geographical wage disparities within the industry, has disrupted manufacturing and threatened the supply of beer. The financial impact of the conflict, with potential beer shortages and a decline in sales, necessitates a resolution in the best interest of all parties to prevent further disturbances in the industry.
