There has been some movement in the negotiations for the metal and electrical industries. IG Metall is making an advance. Can this contribute to resolving the collective bargaining dispute?
Frankfurt. IG Metall has proposed a “solution corridor” to employers in the ongoing collective bargaining dispute in the metal and electrical industries to secure investments and locations. The union expressed its willingness to agree to temporary collective agreements under which contributions from the workforce could be agreed in return for binding employment commitments from the company.
“We need leverage to keep investments here,” said the IG Metall district manager of Baden-Württemberg, Barbara Resch, after the third round of negotiations in Ludwigsburg on Thursday. The union wants to prevent even more investments from flowing to Eastern Europe at the expense of Germany, where wage costs are much lower.
The negotiator on the employer side, Südwestmetall boss Peter Krause, called the proposal interesting and a remarkable step by IG Metall. It offers the opportunity to make cost structures competitive in order to secure jobs and implement new business models.
Krause and Resch did not go into details. According to employers, the social partners should have the power to shape the company. “The meeting was worth it,” said Krause. “Although one thing is still clear: we are very far apart in terms of the overall package.”
The union is demanding five percent more money for the 3.7 million employees in the metal and electrical industry from November onwards for a twelve-month period and regulations to secure employment. High-earning companies should also pay a collective profit share. The employers offered a one-off payment in July 2027, which, according to the union, would be between 500 and 850 euros, depending on the earnings situation.
From July 2028 they want to increase collective wages by 1.3 percent. So far they have not been willing to share in the profits. From IG Metall's point of view, given the increased cost of living, this is a negative round because the inflation rate would not even be balanced. Tens of thousands of employees are expressing their displeasure about the inadequate supply this week with warning strikes across the country.
The short-term work stoppages are expected to continue until midday on Monday. Resch explained that the proposal, agreed internally within the union, would be presented in the regional negotiations on Friday. The employers would then have until Monday to respond, which will then be discussed in the third round of talks in North Rhine-Westphalia. The negotiators from North Rhine-Westphalia, Knut Giesler for IG Metall and Arndt Kirchhoff for METALL NRW, also took part in the meeting in Ludwigsburg.
Resch emphasized that it must be clearly defined under which circumstances companies are allowed to use the relief. It is impossible to increase profits at the expense of employees. “Some employers want to go cheap, we’re not prepared to do that.” According to the union, the premise is that investments must be higher than the contributions of the workforce.
The corridor should be open to companies that are faced with investment decisions, but not to companies with a failed business model. In addition, IG Metall must decide on the application of the desired collective agreement with the participation of the members and not the works council, as many companies would prefer.
