German Unions Score Pay Hikes at Maggi and Hochwald as Retail Negotiations Implode and Eichbaum Braces for Closure
Published on 07/14/2026 at 13:14 | Redaktion boerse-global.de
While workers at two major food companies secured concrete wage increases in mid-July, Germany’s broader labor landscape remains deeply fractured. Retail talks have collapsed in multiple states, a cinema chain is facing strikes, and the iconic Eichbaum Brewery in Mannheim appears headed for closure.
At the Maggi plant in Singen, the Food, Beverages and Catering Union (NGG) and employers struck a deal on July 10 after just one round of negotiations. Wages will rise by 5 percent in two steps: 2.5 percent on August 1 and another 2.5 percent on June 1, 2027. The contract runs for 24 months. Workers also receive a one-time net “recreational bonus” of €156, with apprentices getting half that amount.
That same day, an agreement was reached for roughly 2,000 employees of dairy processor Hochwald Foods across its plants in Thalfang, Kaiserslautern, HĂĽnfeld, Hungen and SchlĂĽchtern. Wages increased by 2.5 percent retroactively to July 1, under a 12-month contract.
The relative success in these two companies stands in stark contrast to the situation in retail. On July 13, employer associations in five regions—Bavaria, Rhineland-Palatinate, Saarland, Berlin and Brandenburg—abruptly canceled all scheduled negotiations. For example, talks set for July 15 in Rhineland-Palatinate and July 20 in Bavaria and Saarland were scrapped. The German Retail Federation accused ver.di’s national leadership of undermining a previous agreement already reached in Baden-Württemberg, saying there was “no basis for constructive dialogue.”
Ver.di rejected the accusation and expanded warning strikes. The union is demanding a 7 percent pay increase over 12 months. Employers’ last offer was 3.5 percent spread across two years, including a six-month pay freeze at the start.
Tensions also flared in the cinema sector. The third round of contract talks at the Cinemaxx chain on July 13 was accompanied by strikes and rallies. The parties remain at odds over wage demands and measures to combat increased workloads. Ver.di is seeking an hourly wage of roughly €15.50, based on the European minimum-wage directive. The company’s latest offer was only €0.10 above Germany’s statutory minimum wage. Talks were set to resume in Hamburg on the following day.
In the painting and varnishing trades, the Construction, Agriculture and Environment Union (IG BAU) has called for arbitration. Nationwide negotiations for around 115,000 workers broke down at the end of January and failed again in a third round. The union is demanding an 8 percent raise or at least €1.50 more per hour; employers offered 2 percent.
Regional disparities remain a flashpoint. In Saxony-Anhalt, SPD politician Armin Willingmann urged a better offer for some 3,000 workers in the food industry, noting that wages there are still up to 30 percent below levels in western states.
Meanwhile, the situation for the insolvent Eichbaum Brewery in Mannheim has worsened. After a crisis meeting on July 13, the NGG said it sees virtually no chance of saving the company. A rescue plan hatched in the spring has failed, putting around 250 jobs at risk. The union’s focus has shifted to demanding a social plan and the creation of a transfer company for affected employees.
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