Wage Agreement in the Food Sector: Schwarz Produktion Signs New Collective Bargaining Agreement for Saxony-Anhalt and Thuringia

Weißenfels, 16 July 2026

  • Agreement to gradually achieve full alignment with terms of Lower Saxony CBA
  • Term of around five-and-a-half years provides planning certainty for staff and locations
  • Region can continue to rely on investment of more than EUR 300 million

Yesterday, following a sixth round of talks, Schwarz Produktion and Nahrung-Genuss-Gaststätten (NGG), the German trade union that represents employees in the sectors of food, beverages, tobacco, hotels and catering, successfully wrapped up negotiations on a new collective bargaining agreement (CBA) for the Company’s factory employees in the food sector in Saxony-Anhalt. Schwarz Produktion, through its companies, has thus become the first member of the regional collective bargaining association to finalise an agreement, sending a clear signal regarding the long-term viability of its sites in Saxony-Anhalt and Thuringia.

Gradual Full Alignment and Long-term Stability

At the heart of the new agreement is the gradual and complete alignment of collectively agreed pay rates with the level agreed for the fruit, vegetables and mineral water industry in Lower Saxony. The new CBA applies retrospectively from 1 January 2026 and runs until at least 31 December 2031. The length of the full term will ultimately depend on the comprehensive CBA for the relevant bargaining area, still to be negotiated. At roughly five-and-a-half years, the long duration of the term locks in a high degree of planning certainty for both the employees and the companies of Schwarz Produktion.

“From the outset, we emphasised that for us it wasn’t a matter of if there would be full pay alignment, but rather when and how,” said Jörg Aldenkott, CEO of Schwarz Produktion. “We were clear from the very beginning that a full alignment would not have been economically feasible within only three years. The five-and-a-half year term is a workable compromise for both sides. It gives our employees clear, attractive prospects while ensuring that we can maintain the competitiveness of our regional facilities. This agreement also represents a major financial undertaking. We will shoulder this by continuing to systematically optimise process efficiency and production activities at our locations.”

The Agreement at a Glance

The agreement provides for two pay rises in 2026: a 3.5 percent increase in July, including a one-off payment of a holiday allowance for the months when the facilities are vacant, and a 2.25 percent increase in December. In the years leading up to 2030, the pay rises granted in Lower Saxony will be adopted and increased by a further 2 per cent each year, until full alignment with the standard pay rate is achieved by 1 July 2031.

Secure Jobs and Reliable Cost Base for Millions in Investments

As a crisis-proof employer, Schwarz Produktion provides a high level of job security for around 1,700 employees in Saxony-Anhalt and Thuringia, including at Bonback in Halle, the MEG plants in Jessen, Leißling and Roßbach, and at Bon Pasta in Erfurt, even in a challenging economic climate. The long term of the CBA provides a foundation on which to secure far-reaching regional investment.
Over EUR 300 million is currently being invested in large-scale efforts to expand the Bonback bakery in Halle (Saale), creating around 400 new jobs covered by collective bargaining agreements. A further EUR 17 million has recently been invested in a state-of-the-art bottling plant at MEG Jessen to ensure that the site remains at the cutting edge of technology.

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