German union IG Metall demands 7% wage increase as negotiations begin

Collective bargaining has begun in Germany with the IG Metall union seeking a 7% raise for almost four million workers across the car making, electrical and metal sectors. The talks started on Wednesday and IG Metall has threatened to embark on a strike if its claims are not considered.

Why It Matters:
IG Metall’s demands come at a time when there are fears over the sustainability of the industrial projects in Germany. The willingness of the union to strike may exacerbate the pressure in manufacturers who are facing other issues like threat of de-industrialisation and competition. Germany is Europe’s largest economy, and it continues to work hard to retain its status as one of the best locations for business.

Key Figures:
The union also has a wage structure in which they are demanding a 7% increase for nearly three. 9 million workers within the next 12 months, and 170 euros more for trainees every month as overloaded cost of living in Germany. In this regard, the Bundesbank anticipates that inflation will decline to 2. Down from 6% last year, MIGA anticipates that increase in its revenue this year to an average of 8%. undefined

Challenges Faced:
The BDI business association has noted that about one-fifth of the country’s industrial added value could be threatened by such challenges as high energy costs, a lack of qualified workers, and insufficient investments.

Statements:
Knut Giesler, IG Metall’s negotiator in North Rhine-Westphalia, emphasised the seriousness of the union's stance: “We are making extremely intensive preparations for a collective bargaining round, including one with industrial action. ”

In response, Angelique Renkhoff-Muecke, chief negotiator for the Bavarian Metal and Electrical Industry Association, urged all parties to take responsibility: “The situation is bad, and the collective bargaining partners cannot afford to turn a blind eye.”

What’s Next:
Wednesday’s negotiations marked the start of talks in various states, with discussions in North Rhine-Westphalia set to begin on Thursday. Further negotiating rounds are planned, with potential strikes possible from October 29, when the current agreement prohibiting such actions expires.