Employers and employees have agreed on a two-year deal: in 2026, there will be a collective agreement and actual wage increase in line with the rise in inflation.

The wood industry has reached a significant agreement in collective bargaining negotiations, which were concluded after intensive and constructive discussions. With the approval of both parties, around 27,400 employees in the industry can expect a 2.8 percent salary increase from May 1. This adjustment was agreed as part of a comprehensive strategy to ensure competitiveness and recognize the achievements of employees.

Real salaries and wages will also be increased by 2.75 percent. However, the agreement limits this increase to a maximum of 90 euros per month. This ensures that the increase remains affordable for companies and that employees receive appropriate recognition.

Long-term collective agreement with inflation adjustment

The social partners agreed on a two-year collective agreement that will come into force on May 1, 2026, and provides for wage adjustments in line with the inflation rate. Particularly noteworthy is the agreement that guarantees dynamic adjustment to changing economic conditions. If consumer prices rise significantly, it may be necessary to reopen collective bargaining. Such a clause provides employees with a safety mechanism to maintain their standard of living in the event of high inflation.

Specifically, it has been stipulated that if the consumer price index rises by more than 3.3 percent between March 2025 and February 2026, the collective agreement may be reviewed and adjusted. This innovative provision is a significant step toward flexible contracts that protect both employers and employees from unexpected economic fluctuations.

The agreement was reached after three rounds of intensive negotiations. The negotiations covered the interests of around 1,300 companies within the wood industry. This sector is an important branch of the economy with unique requirements and challenges that had to be taken into account in the preparations and discussions.

The current collective agreement will remain in force until April 30, 2027, providing both sides with a stable basis for planning in the coming years. This stability is crucial for companies' long-term planning and for the security of employees.

Parallel to these negotiations in the wood industry, the social partners in the chemical industry are also in discussions about upcoming wage and salary increases. These simultaneous talks underscore the widespread need throughout the German economy to find fair and sustainable solutions to the current economic challenges.