Wage Agreement Reached in Northern Confectionery Industry

Employees in the confectionery industry in Hamburg and Schleswig-Holstein are set to receive increased wages after a new collective bargaining agreement was reached. The accord between the Federation of German Confectionery Industries (BDSI) and the Food, Beverages, and Catering Union (NGG) mandates a multi-stage pay raise over 24 months, effective until April 30, 2028.

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The wage agreement demands a lot from the companies economically and pushes them to the limit of what is financially sustainable.

Retroactive to June 1, wages will increase by 2.9 percent. Further raises of 0.3 percent are scheduled for November 1, 2026, and another 2.9 percent on June 1, 2027. Additionally, employees will receive recreation bonuses of 80 euros each in September 2026 and May 2027, with pro-rata payments for part-time workers. Apprentices will also see their wages increase proportionally and receive half of the recreation bonuses.

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With the two-year term, it was possible to give companies in Hamburg and Schleswig-Holstein a high degree of planning and cost certainty.

Mario Mundorf, the BDSI's managing director for collective bargaining policy, stated that the agreement places significant economic demands on companies, pushing them to their financial limits. However, he noted that the two-year term provides a high degree of planning and cost certainty for businesses in Hamburg and Schleswig-Holstein.

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It is a bearable collective agreement, but it carries a risk in terms of inflation development.

Finn Petersen, the regional chairman of NGG Nord, described the agreement as a "bearable" outcome, though he expressed concerns about potential inflation developments and wished for a shorter contract duration. He also indicated that the union had hoped for more benefits for apprentices.

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We would have wished for a shorter term.