CEO Wolf expects staff cuts in the coming year
Stefan Wolf, head of Gesamtmetall, is forecasting a difficult year for the metal and electrical industry. "What we are seeing is that the number of applications for short-time working in member companies has risen sharply this year. I expect that companies will cut staff in 2024," Wolf told the "Reutlinger General-Anzeiger" (Tuesday). The number of insolvencies in the metal and electrical industry will also increase. "This will affect larger and smaller companies. It's a question of structure." Those who have not prepared for the transformation are more at risk.
Wolf also prepared employees for lower wage settlements. The last agreement, which was valid until October 2024, was high, as the situation had not developed as positively as hoped, perhaps too high. "We will have to cut back in the metal and electrical industry in the future." The President of the employers' association Gesamtmetall warned of the negative consequences of a high agreement. The metal industry earns very well. However, there are many sectors in which wages are not as high, but which are also important, such as care, education and healthcare.
The economic situation in the metal industry is expected to be challenging, leading to elevated applications for short-time work and potential staff cuts in 2024, as stated by CEO Wolf. The increase in insolvencies in this sector, affecting both large and small companies, underscores the need for adaptation and structural changes, given the anticipated negative impact of tariffs.
Source: www.dpa.com
