Germany’s largest industrial union, IG Metall, is demanding a 5% pay increase for about 3.7 million workers in the country’s metal and electrical industries as collective bargaining talks approach.
The union said the demand reflects workers’ expectations for higher incomes and greater job security, while also seeking profit-sharing arrangements at companies performing strongly. Negotiations are scheduled to begin on October 7, with warning strikes possible from November 1 if no agreement is reached.
The wage talks come at a difficult time for Germany’s industrial sector, particularly the automotive industry. Major manufacturers including Volkswagen and Mercedes-Benz have warned about high production costs and intense competition from Chinese manufacturers.
Mercedes has said German production is not competitive by international standards because of factors including labour costs, while warning that two plants could face closure if costs are not reduced.
IG Metall President Christiane Benner said the union would not accept arguments that workers should bear the burden of the industry’s difficulties. The union is also pressing for employment and location security.
The upcoming negotiations will therefore have implications beyond wages, as Germany’s manufacturers seek to reduce costs while workers push for higher pay and protection against job losses.
Leave a comment