In the ongoing wage dispute in the German steel industry, IG Metall is calling for all-day warning strikes in Bremen and Lower Saxony on Thursday. This action comes one day before the fifth round of negotiations, and the union is extending the strikes following an unsuccessful fourth round. IG Metall is demanding a significant wage increase of 8.5% over a twelve-month period and a 32-hour week with full wage compensation. The employers, represented by the Stahl association, have expressed concerns over these demands, labeling them "completely excessive"[1].
The steel and iron industry employs around 68,000 people in North Rhine-Westphalia, Bremen, and Lower Saxony. Key players like Salzgitter AG, headquartered in Salzgitter, Lower Saxony, and ArcelorMittal in Bremen are heavily involved in this dispute.
Given the economic turmoil facing certain industries, including international tariffs and fluctuating global market conditions, collective bargaining processes have become crucial for maintaining a competitive steel industry.
As for compensation, IG Metall initially agreed to a more modest 5% wage increase over a 27-month period, with the funds earmarked for the transformation to electric vehicles instead of immediate distribution to workers. On the other hand, employers, such as Volkswagen, have implemented far-reaching cost-saving measures and wage freezes until 2030, resulting in significant cuts to workers' effective income[1][4].
Additionally, the agreement includes a reduction of 35,000 jobs and a reduction in real incomes of up to 20%, which has sparked criticism from workers and critics alike[1][4]. The focus on cost savings could have broader implications for the automotive and supplier industries, potentially leading to further pressure on workers' job security.
Sources: [1] [4]
