"The situation is catastrophic. And there is no improvement in sight" - Association warns of loss of 300,000 jobs

The crisis in the German metal and electrical industry could cost hundreds of thousands more jobs in the coming years. In a report in the “Bild” newspaper, the employers’ association Gesamtmetall warns of the loss of up to 300,000 jobs in the next two to three years. This would correspond to a reduction of around 10,000 jobs per month.

“In view of the underutilization, a further 300,000 jobs in the metal and electrical industry alone are at risk in the next two to three years,” “Bild” quoted Gesamtmetall managing director Oliver Zander as saying. According to the report, the associated additional loss of prosperity for Germany could be around 35 billion euros per year.

According to Zander, the industry has already lost around 350,000 jobs in the past seven years. This results in an annual loss of value creation of around 42 billion euros. There are currently around 3.7 million people working in the German metal and electrical industry. If the number of employees falls by a further 300,000, around 3.4 million employees would be the lowest level since reunification.

The burdens on companies include growing competition from China, high labor and energy costs in Germany, bureaucracy and US tariffs. IG Metall also blames management errors, particularly in the automotive industry, for the difficult situation.

The announced job cuts at automotive and industrial supplier Schaeffler also show how tense the situation is. The company wants to cut 3,460 jobs in Europe, including 2,660 in Germany. In addition, the plants in Dortmund and Morbach are to be closed, activities at the Berlin location are to be discontinued and the Schwalbach location is to be abandoned.

At the same time, the collective bargaining dispute in the metal and electrical industries is ongoing. IG Metall is demanding five percent more money over a term of twelve months and has called for warning strikes.

The employers are offering a one-off payment of one percent of the average annual gross salary in July 2027 and a permanent salary increase of 1.3 percent from July 2028. The collective agreement is scheduled to run for 26 months until the end of 2028. IG Metall described the offer as inadequate and a de facto “minus round”.

Zander rejects the union's demands given the economic situation. "The situation is catastrophic. Companies are often fighting for survival and there is no improvement in sight," he told the "Bild" newspaper. The demand for five percent more wages is “irresponsible” and endangers further jobs.