Upcoming wage negotiations in the retail sector: HDE sounds the alarm
Ahead of the start of collective bargaining in the German retail sector this spring, the German Trade Association (HDE) is warning against excessive union demands and job losses in what are historically challenging times for the industry.
“The overall economic conditions are currently still very poor, and the retail sector is no exception. Rising labor costs, for example due to excessive wage agreements, oppressive bureaucracy and regulatory burdens, and ever-increasing social security contributions are a veritable cocktail of poison in this difficult situation, which could jeopardize jobs in the retail sector on a massive scale,” says HDE collective bargaining director Steven Haarke.
The trade union expressly supports social partnership, which is a very valuable asset. The current initiative by DGB leader Yasmin Fahimi for an “alliance for work and innovation” between the social partners in the Federal Chancellery is also to be welcomed.
“This initiative clearly shows that the unions have now also recognized the dramatic nature of the situation for Germany as a business location,” said Steven Haarke.
However, from the HDE’s point of view, it is particularly important that all stakeholders refocus their attention on the constitutionally protected autonomy of collective bargaining.
“The increases in the statutory minimum wage are eating deeper and deeper into collective agreements. This is increasingly becoming a heavy burden on collective agreements in all sectors.”
Steven Haarke, HDE Collective Bargaining Director
Before the start of this year’s collective bargaining rounds in the retail sector, which employs more than 3.1 million people, the HDE is therefore issuing an urgent warning against creating expectations among employees that will ultimately prove unrealistic as a result of excessive wage and salary demands by the unions.
The latest collective agreement has brought retail workers a total salary increase of 14 percent over the period from 2023 to 2025, resulting in a demonstrable increase in real wages.
“At that time, we reached high up on the shelf, and we did so during extremely difficult times for the industry,” Haarke continued.
This wage increase is difficult for many employers in the retail sector to shoulder, given the current economic situation and rising costs.
Declining employment figures in the retail sector
“There is hardly any room for maneuver this year, otherwise there is a risk of massive job losses in the industry. The union now has a responsibility not to cause irreversible damage to the industry,” Haarke continued.
Germany is heading toward a new high in unemployment figures. According to the Federal Employment Agency, 2.9 million people in Germany were unemployed again in December 2025.
Employment figures in the retail sector also declined again for the first time. According to a recent special evaluation by the Federal Employment Agency, the industry has lost more than 60,000 jobs subject to social insurance contributions since 2022.
“Unfortunately, that’s probably not the end of it,” said Haarke.
Collective bargaining in the retail sector will begin in April 2026. The industry employs 3.1 million people, making it one of the largest collective bargaining rounds in Germany.
