In the collective bargaining dispute in the Baden-Württemberg metal and electrical industry, the metal employers did not submit an offer in the first round of negotiations. Südwestmetall's negotiator, Peter Sebastian Krause, said in Ludwigsburg: “The competitiveness of our companies is at stake. Instead of wage increases, this time it has to be about real relief for companies.” IG Metall district manager Barbara Resch explained that the employees primarily need security for their income and their jobs. The collective bargaining round is a security collective bargaining round for the union. The solution cannot be renunciation.
The second round of negotiations is scheduled to take place on October 27th. According to association information, the German metal and electrical industry is in the longest recession in post-war history. In the current year 2026, the decline in production in Germany will amount to 2.2 percent compared to the same period last year. Gesamtmetall chief economist Lars Kroemer said that production was still 15 percent below the pre-crisis level of 2018. "At the same time, Germany's largest industrial sector, with over 3.7 million employees, is still heading towards its third year of recession in a row."
Negotiator Krause from Südwestmetall also said that 350,000 jobs have already been lost in the industry nationwide since the peak in 2019, including 100,000 in Baden-Württemberg. Resch further said that the discussions were about stabilizing incomes and the industrial location. “We are ready to work together with Südwestmetall to advocate for the future of the industry to politicians.”
The union entered the talks with a demand for 5 percent more money over a period of twelve months. Compensating for the recent sharp rise in inflation is considered the minimum goal. Around 900,000 employees across the country in Baden-Württemberg are affected in sectors as diverse as the automotive industry, mechanical engineering, electrical engineering and defense equipment.
Protest in front of the hearing room
Before the start of the talks, IG Metall said it mobilized 3,500 employees for a protest march through Ludwigsburg. In front of the hearing room, they used drums and whistles to draw attention to their demands. Banners read, for example, “#Ready to strike” or “The future needs people”. District manager Resch made it clear that the union was not afraid of a dispute with employers.
In Baden-Württemberg, Mercedes-Benz had previously initiated a discussion about working hours and brought up a return to 40 hours of weekly working time without wage compensation. The 35-hour week is regulated in the collective agreement. However, this is not on the agenda in the current collective bargaining round because it has not been terminated. The current round is purely a wage round.
As a rule, some of the companies that are not bound by collective agreements also focus on the results and accept agreed wage increases. That is why the collective bargaining round has effects far beyond the companies covered by collective bargaining agreements.
The peace obligation ends at the end of October 31st. From then on, warning strikes are possible.
