I. Policy Updates/Government Issues Affecting the German Market

In Germany, there has been a fundamental change in the social security contribution rules for income up to €1,600 as of October 1, 2022, and up to €2,000 as of January 1, 2023: The previous parity changes to the detriment of the employer, who must pay significantly higher social security contributions.

A ruling by the German Federal Labor Court is still under discussion, on the basis of which a fundamental obligation to record working hours digitally is to be feared.

Of course, the current crisis situation due to the pandemic and the economic crisis caused by the war in Ukraine and the resulting energy crisis is also one of the biggest challenges for our industry. The extremely increased costs for energy, but also for almost all labor and consumables, are difficult for customers to realize. Together with the development of wages (see “Market Challenges”), this therefore dampens the always positive future forecasts of our companies. This was underlined not least by our current economic survey in fall 2022.

II. Success Stories

The German Association of Guilds was awarded the Media V-Award by the German Association for Association Management (DGVM) for its social media campaign in the Corona crisis "#Rückendeckung" (#Backing). The BIV had launched the campaign in spring 2020 on the occasion of the pandemic. #Rückendeckung symbolizes that building cleaning was and is system-relevant in the corona crisis and is a necessary building block against the pandemic. At the heart of the campaign is diverse video and graphic content for social media. This was supplemented by PR activities, including a nationwide light campaign at the Reichstag in Berlin, Cologne Cathedral and the Siegestor in Munich, as well as representative surveys, interviews and exclusive reports in the trade and national press.

(Photo: from left to right) Holger Eickholz (Chair of our Public Relations Committee), Steffi Reuter (Managing Director Public Relations and Vocational Training  @ the BIV) and Hans Ziegle (Deputy Federal Guild Master) at the Award Ceremony when we received the Media V-Award from DGVM).

From November 8 to 9, 2022, the Federal Guild Association, together with Holzmann Medien, publisher of the trade magazine "Rationell Reinigen" organized the Future Forum Building Services 2022 in Munich. After the pandemic-related cancellation in 2020, around 500 participants received insights and impulses for their operational future through presentations on the current topics of the industry. The program ranged from new customer requirements to sustainability and IT security to a highlight lecture by business philosopher Anders Indset. He is one of the world's leading business philosophers and a trusted sparring partner for international CEOs and political leaders. Dubbed "Rock'n'Roll Plato" by the media, his approach to practical philosophy makes him one of the most sought-after keynote speakers and also made a lasting impression on our participants.                                                

III. Market Challenges

In October 2022, our new collective wage agreement came into force, including a 12.55% increase for the lowest wage group. The reason for this was that the statutory minimum wage in Germany was raised from 10.45 to 12 euros by the new German government on October 1, 2022. Our lowest wage group was also to rise to 12 euros on January 1, 2023 under a collective agreement already concluded in 2020. However, this date was already obsolete due to the entry into force of the statutory minimum wage. Moreover, in the unanimous opinion of our members, it was absolutely necessary to maintain the wage gap to the statutory minimum wage in order to offer an attractive incentive to work in the industry in times of staff shortages.

In the near future, more and more companies in the industry will be required to report on their sustainability activities. This poses a great challenge for our companies, since in the personnel-intensive cleaning sector in particular, companies with relatively few employees will have to prepare such a report due to the criteria.

Finally, the issue of cybercrime is presenting our industry with even greater challenges. Due to the enormous increase in attacks, which has gained even more momentum due to the Corona pandemic and the current economic situation, the question is no longer "if" but "when" a company will be attacked. The BIV supports its members with various guides and regular newsletters on the subject. BIV has also set up its own working group of IT experts from member companies.

IV. Additional Updates

Johannes Bungart is retiring from his long-standing post as managing director of the Federal Guild Association of the Building Cleaning Trade, the BIV. Among other things, he was honored for his many years of service at the BIV general meeting on November 7, 2022 in Munich.

For 33 years, Johannes Bungart decisively and successfully shaped the development of the industry over the past decades. Due to his manifold merits, he was appointed honorary member of the Federal Guild Association.