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Hettich workers delay pay rise to ease company's financial strain

A desperate move to survive: 2,000 workers sacrifice €1,000 each to keep their employer afloat. But is this the new normal for Germany's shrinking furniture sector?

The image shows a poster with two people standing in front of a backdrop of mountains and trees....
The image shows a poster with two people standing in front of a backdrop of mountains and trees. The text on the poster reads "What our free trade means - British Granite Worker - The Fair Wages Clause is all right, but I want work".

Hettich workers delay pay rise to ease company's financial strain

Thousands of workers at furniture supplier Hettich have agreed to postpone a scheduled pay rise. The decision comes after the company proposed a one-year delay, citing financial difficulties. Over 90% of the 2,000 affected employees accepted the offer. The pay increase, originally set for 1 April, was part of a collective bargaining deal with IG Metall. Workers were due a 3.1% raise, but Hettich requested a delay to ease financial pressure. Those who agreed will now forgo more than €1,000 over the next year.

The company claims the move will save several million euros. Hettich has denied accusations of pressuring staff, stating it provided full transparency and allowed individual decisions.

IG Metall has criticised the delay, arguing that employees faced unfair pressure. The dispute reflects broader struggles in Germany's furniture sector, which has shrunk since 2021. Rising costs, labour shortages, and weaker demand after the pandemic have squeezed profits and production across the industry. With most workers accepting the delay, Hettich secures short-term financial relief. The decision highlights ongoing challenges in the furniture industry, where firms continue to adjust to economic pressures. Employees will now wait an extra year for their agreed pay increase.

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