Hettich workers delay pay rises to ease company's financial crisis
Thousands of employees at furniture hardware supplier Hettich have agreed to delay their scheduled pay rise. The decision comes as the company faces financial strain from rising costs and competition. Workers will now forgo an increase originally set for April 1 this year.
Hettich proposed postponing the 3.1% salary hike by one year, citing ongoing financial difficulties. Since 2021-2022, the industry has struggled with soaring raw material and energy costs, supply chain issues, and growing competition from Asian manufacturers. Despite a rebound in demand after the pandemic, these pressures have squeezed profits.
Over 90% of Hettich's workforce accepted the delay, which will save the company several million euros. The move means employees will miss out on more than €1,000 each over the next twelve months. Hettich has stated that participation was voluntary, with no pressure applied to staff. However, the IG Metall union has criticised the decision, accusing the company of putting undue pressure on workers. Hettich has denied these claims, insisting that employees made individual choices without coercion.
The delayed pay rise will help Hettich cut costs amid a challenging economic climate. Employees will now wait until 2025 for their salaries to increase. The company's financial relief comes at the expense of workers' immediate earnings.
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