Companies operating within the metal and electrical sectors anticipate significant layoffs.
Gesamtmetall's head predicts substantial layoffs in the metal and electrical sector in the near future. "I estimate that we could see 250,000 to 300,000 job losses in the metal and electrical industry within the next five years," Stefan Wolf, president of Gesamtmetall, told Funke media group's newspapers on Wednesday.
However, with the retirement of the largest workforce generations approaching, these layoffs might be "made as socially acceptable as possible," Wolf hinted. Surprisingly, despite the impending job losses, there might be a labor scarcity, prompting a need for more work hours, Wolf cautioned.
Wolf, the head of Gesamtmetall, advocated for a "reasonable energy policy" from the incoming federal government. He argued that energy costs are excessively high and the expansion of renewables is taking an unreasonable amount of time. "We've got the highest corporate taxes among major economies and unnecessarily high social security contributions," Wolf added. Most importantly, "the mountain of bureaucracy" must be significantly reduced, he proposed.
Presently, wage negotiations are active in the metal and electrical industry. IG Metall union is demanding a 7% salary increase for its approximately 3.9 million employees, with a one-year contract. Initially, employers offered a 3.6% wage hike over a 27-month period. The peace accord expires at the end of October, implying the likelihood of labor unrest.
Despite the impending job losses in the metal and electrical sector, there might be a surprising labor scarcity due to retirements, which could necessitate longer work hours. Additionally, other industries might need to adapt to the "Other" retirements, as Wolf hinted at making layoffs as socially acceptable as possible.
