New IG Metall Leader Warns of Austerity's Impact on German Industry
The fresh face leading IG Metall raises alarms about the latest round of austerity measures' potential fatal consequences for German industries. Businesses in Benner's sectors were already in a rough spot due to slashed investments and eastward relocation of portions of production, according to the unionist's observations, based on survey data from works councils.
The budget compromise of the traffic light coalition's government brings yet more hardship. Benner criticizes the sudden elimination of environmental incentives for electric cars as a dire signal that has caught the industry off guard, casting doubts even among well-intentioned individuals. Preparing for an automotive sector turnaround, she speaks of the potential for more companies abandoning energy-intensive industries, noting that the existing electricity price package was already overly restrictive.
The addition of billions in grid fees could worsen the situation further, Benner contends. She admits that alongside cuts, there have been positive developments favoring the industry, but the fact that many works councils still cannot identify a cohesive strategy for the future leaves her uneasy. The workforce is ready for increased involvement, particularly in strategic matters.
IG Metall will be directing its attention to the industry in the coming year, Benner declares. She expects that negotiations for higher wages and flexible work hours will be met with stiff resistance.
Benner, who has recently had constructive conversations with Gesamtmetall, the employers' association, emphasizes the importance of strong labor-management partnerships to address the skilled workers shortage and attract more employees to the industry. She advocates for appealing work hours, meaningful corporate objectives, and strategic personnel planning that prioritizes continued education. Society as a whole must focus on reducing the high part-time employment rate for women and improving transition management between school and training to better integrate refugees into the workforce, she suggests.
Also Worth Reading:
- According to Christiane Benner, IG Metall's head, widespread relocation of production to the east and slashed investments have left several metal industry firms in a precarious position.
- The budget compromise of the traffic light coalition brought more burdens, Benner argues, citing the abrupt cancellation of environmental bonuses for electric cars as a devastating shock that raises doubts within the industry.
- Focusing on ecological and digital transformation in Germany, Benner laments a lack of clear strategic direction from politicians. She condemns the government's adherence to the debt limit under conservative opposition pressure as misguided.
- Higher electricity prices and additional grid fees exacerbate the situation, according to Benner, highlighting the need to overcome the debt brake to address pressing challenges.
- Some positive moves in favor of the industry, including continued subsidies for batteries and semiconductors, have not changed the general outlook for other manufacturers, admits Benner.
- In preparing for the upcoming metal and electrical collective bargaining round, IG Metall will engage proactively with companies to promote attractive working conditions and strengthen social partnerships, Benner reveals.
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Additional Insights:
- Local Content Requirement:
- As a means to balance local content without mandating 100% domestic components, IG Metall suggests that foreign companies selling products in the European market should include some European-made components[2].
- Industrial Decarbonisation and Competitiveness:
- Benner and IG Metall urge rapid action to lower domestic industry's energy costs and clarify subsidies for decarbonisation, providing long-term planning security. Decarbonization is seen as both an opportunity for success in a decarbonizing world and a requirement for competitiveness[1].
- Plant Closures and Employee Support:
- IG Metall is critical of Contitech, a division of Continental AG, for its plant closure decision, stressing the need for a viable support strategy for affected employees[4].
- Budget Constraints and Planning Security:
- Low investment levels due to high uncertainty are seen as major obstacles to successful decarbonization, according to IG Metall and industry experts[3].
