All-Day Showdown Looms after Steel Union Negotiations Hit a Roadblock
IG Metall, the powerful metalworkers' union, announced all-day warning strikes in the wage dispute within the north-west German and east German steel industry. The decision followed an inconclusive round of collective bargaining.
Knut Giesler, the lead negotiator for the north-west German steel industry, stated that after both sides had explored a potential solution regarding work hours in various sectors, the negotiations failed primarily due to a dispute over the pay increase. The first round of 24-hour warning strikes was set to commence in the morning, with other companies expected to follow suit.
Similarly, warning strikes were announced for the east German steel industry. Dirk Schulze, the lead negotiator for the eastern steel industry, expressed disappointment over the employers' unwillingness to increase wages adequately while significantly reducing working hours. IG Metall canceled the scheduled round of negotiations for Tuesday in the eastern steel industry.
The steel employers' association referred to IG Metall's proposals as excessively ambitious. Managing Director Gerhard Erdmann criticized IG Metall for using employers' financial offers as a benchmark solely against their exaggerated expectations, ignoring the companies' financial capabilities during a potential economic crisis.
According to IG Metall, the employers had proposed a one-time payment of 1,000 euros for January 2024 and a 3.5% pay raise from July 2024, totaling 19 months. Giesler noted that this offer was so far removed from a potential resolution that negotiations were deemed unnecessary at this stage. IG Metall had demand a 12-month wage hike of 8.5% and a 32-hour workweek with full wage compensation.
There are approximately 68,000 people employed in the steel and iron industry in North Rhine-Westphalia, Bremen, and Lower Saxony, and approximately 8,000 in the east German steel industry. The next round of negotiations in the west is slated for December 15 in Düsseldorf. Negotiations for the eastern German steel industry will resume on December 18.
Related Articles:
The metal wage dispute in the steel industry has culminated in warnings of all-day strikes, with IG Metall initiating the first 24-hour action in light of the employers' refusal to substantially increase wages and decrease working hours. The steel industry's east German branch also faced similar warnings due to the same concerns: insufficient wage adjustments and working hour reductions.
Background
The union had proposed a 12-month wage hike of 8.5% and a 32-hour workweek with full wage compensation. In contrast, the employers had offered a one-time payment of 1,000 euros for January 2024 and a 3.5% pay raise from July 2024, totaling 19 months. The latter proposal had fallen significantly short of IG Metall's demands.
Critics argued that the union's leadership had failed to instigate a full-scale strike or engage workers in discussions regarding the agreement. Some advocated for a more militant approach and the formation of rank-and-file action committees to safeguard jobs and salaries.
As a result, industrial action was somewhat limited, with critics pointing to a lack of decisive leadership and an inadequate mobilization of workers. Regions susceptible to significant consequences, such as Dresden and Zwickau, were particularly concerned about the agreement's potential role in fostering extremist groups.
Related Developments
The metal wage dispute had resulted from intense negotiations between IG Metall and the steel employers, culminating in an agreement that was both praised and criticized. The agreement considered various measures, including pay rises, working hours, and job cuts.
While the agreement resulted in significant wage increases for many, it also led to job losses and real income reductions up to 20%. The agreement's critics argued that the union's leadership had failed to organize a consistent labor dispute despite high worker organization levels. This, in turn, led to a contentious situation, with some calling for a more militant approach from IG Metall.
In conclusion, the metal wage dispute in the steel industry led to warning strikes due to the employers' unwillingness to provide substantial wage increases and reduce working hours. IG Metall's proposed 12-month wage hike of 8.5% and a 32-hour workweek with full wage compensation had not been met by the employers. The situation was further complicated by various criticisms of IG Metall's leadership, making a resolution to this dispute a challenging task.
