Oettinger Brewery Employees Face Extended Working Hours Despite Wage Increase

The recent collective bargaining negotiations between the Food, Beverages and Catering Union (NGG) and Oettinger Brewery have resulted in a new agreement that introduces both wage increases and expanded working hours during peak production periods. The deal, reached after lengthy discussions, is designed to address the current economic climate within the beverage industry.

The central point of contention during negotiations was the framework agreement governing working conditions, particularly the weekly working hours during Oettinger's busiest months. The union had sought to limit the weekly working hours in the summer peak season; however, the final agreement permits the company to increase weekly hours to up to 45 from June to September to meet heightened demand.

As part of the compromise, employees will receive a cumulative wage increase of 3.8 percent over the next two and a half years. This includes a 2 percent rise effective retroactively from June 1, 2025, an additional 0.8 percent from January 2026, and a further 1 percent from November 2026. The wage agreement is set to remain in effect until the end of 2027.

The new agreement also introduces paid breaks for shift workers while operations continue and codifies statutory requirements regarding probationary periods and protection against efficiency-driven layoffs. However, weekly working hours will continue to vary across Oettinger's locations: employees in Oettingen will work 38 hours per week, those in Walldorf 37 hours, and staff in Mönchengladbach will maintain their existing arrangements.

While management and union representatives have characterized the agreement as a necessary adaptation to the challenging market environment, the outcome means that real wage growth for employees will likely remain below the prevailing inflation rate, leading to a potential loss in purchasing power over the contract period. Recent economic analyses indicate an inflation rate of approximately 2.3 percent, suggesting that the wage adjustments may not fully offset increased living costs.

Beyond wage and hour reforms, the agreement excludes the Braunschweig production site, which is scheduled for closure by the end of the year. Approximately 140 employees at this location will be covered by a social plan, including options for transfers to new employment programs and severance payments. The company plans to consolidate production at its Oettingen and Mönchengladbach facilities, while some logistics and materials management operations, involving around ten staff members, will remain in Braunschweig.

The broader brewing sector in Germany continues to experience significant pressures. In the past five years, the number of breweries has decreased by 93, a decline attributed mainly to rising operational costs. The German Brewers Association reports that 1,459 breweries remained in operation nationwide as of 2024, with 52 closures occurring in the previous year alone. High inflation and increased expenses have intensified the challenges, particularly for small and medium-sized breweries.

The recent developments at Oettinger reflect industry-wide trends of consolidation and adaptation to shifting economic circumstances. The company's new labor agreement exemplifies the balance many manufacturers now seek between maintaining operational flexibility and providing fair compensation to their workforce amid ongoing market volatility.