Steel compensation talks commence with 3.1% proposal from employers
Wage discussions for the steel sectors in northwest and eastern Germany started on Monday, with employers offering a 3.1% salary boost over 15 months. IG Metall swiftly dismissed this as " förkomlig " or completely inadequate. In response, the union is demanding a 8.5% raise over 12 months.
The union believes soaring inflation over the last year and a half has severely impacted employee wages, leaving many strapped for cash. Employers, however, argue that anticipating inflation of less than three percent, the 8.5% demand is "förkomlig ."
The first round of negotiations for both collective bargaining districts took place jointly in Düsseldorf.
Employers firmly reject 32-hour workweek proposal
IG Metall strongly advocates for a 32-hour workweek with full-time compensation, which the steel employers' association categorically rejects as impractical and financially unsound.
Reduced work hours positively impact workers' well-being
Dirk Schulze, Berlin-Brandenburg-Saxony District Manager and the primary negotiator for East German steel industry, believes reducing working hours will boost the industry's appeal to potential employees. Higher productivity, fewer sick days, and improved work-life balance make it more attractive than other sectors, he maintains.
Social responsibility and employment preservation
Knut Giesler, IG Metall NRW district manager and lead negotiator, stresses the responsibility of employers to maintain employment and compensation during the transition to green steel production. Reduced working hours with full-time compensation helps bridge this gap, ensuring employment continuity in the sector.
Union opposes employers' proposed steel tariffs
The proposed steel tariffs by employers are viewed negatively by the trade unions. They argue that these tariffs will erode workers' purchasing power and further worsen inflation, leading to a smaller real wage increase proposed by the employers.
Employers emphasize the importance of preserving competitive tariffs
Employers in the steel industry insist on maintaining competitive tariffs to safeguard the sector's survival. Reducing tariffs may lead to substantial revenue loss, potentially resulting in job losses and a decrease in investment in the industry.
Enrichment Data Integration
Workers will not see the promised wage increase until 2030 and have to contend with reduced bonus payments and holiday pay, leading to significant income reductions. However, the "Future Contract" between IG Metall and VW includes provisions for reducing weekly working hours to 28 hours with compensation for the first two hours, with decreasing percentages for additional hours. The US has announced a 25% tariff on steel imports, slated for March 12, 2025. This move is intended to protect the American steel industry from perceived unfair trade practices and global excess capacity, sparking concerns and potential countermeasures from the EU and UK.
