Craftsmen in the metalworking industry and labor organizations still have considerable strides to make
The wage discussions in the metal and electrical sector have proposals and counterproposals on the table. The journey towards consensus is still a long one. Employers repeatedly bring up the slow economic climate from their perspective and push for a prompt resolution.
In the second round of negotiations in Bremen, employers' association Nordmetall, represented by Lena Ströbele, proposed a 3.6% wage increase over 27 months. This includes a 1.7% increase effective July 1, 2025, followed by a 1.9% hike the following year. The critical state of the industry, marked by escalating insolvency rates, is acknowledged by both parties. "We need to stop this downward spiral first," Ströbele added.
However, the IG Metall union rejected the proposal. They demand a 7% wage increase for Germany's 3.9 million employees in the primary industry. Effective from October 1, this increase would last for 12 months. Daniel Friedrich, IG Metall's lead negotiator and head of the coastal branch, described the offer as underwhelming, stating, "The term is too long, the increase is too small and comes too late - the offer disappoints and even trails behind the anticipated inflation for the upcoming years." A mutually beneficial resolution seems challenging to attain swiftly, as the positions of both parties remain widely apart.
Friedrich argued that catching up on real wage losses from recent years is necessary, and private consumption plays a significant role in bolstering the economy.
Negotiations in other districts, such as Bavaria, Baden-Württemberg, and North Rhine-Westphalia, have also resulted in identical employer proposals. The Bavarian negotiations saw 3,500 participating employees and 500 young employees pushing for an additional 170 euros monthly training allowance in Bremen, which employers are willing to discuss.
Rumors suggest pending talks about which of the eleven wage districts will negotiate the pilot agreement. Apart from the coastal region, where this would be a first, Bavaria is considered a strong contender.
Employers in Bavaria advocate for an extension of a corona rule that permits struggling companies to deviate downward if they slip below a specified net margin. Friedrich countered this argument, pointing out that there are alternative ways for troubled businesses to distinguish themselves.
The wage discussions in northern Germany will continue on October 29 in Kiel. After this date, warning strikes may be initiated following the expiration of the peace obligation. Bavaria's employer chief, Angelique Renkhoff-Mücke, expressed hope that an agreement can be reached without resorting to warning strikes. Companies require stable planning conditions. "We aspire to achieve a result extremely quickly."
The Commission has stated the importance of finding a resolution in the wage negotiations, considering the widespread participation of employees in various districts. Following the rejection of the initial proposal, IG Metall urged the Commission to consider a more substantial wage increase to make up for real wage losses and boost private consumption.
