Head of Gesamtmetall anticipates job cuts
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 companies to reduce their workforce in 2024," Wolf told the Reutlinger General-Anzeiger newspaper.
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 impacting the labor market, leading to discussions about potential job cuts. According to Wolf, tariffs in the trade sector might exacerbate this situation. Despite the metal industry's financial success, as highlighted by the President of Gesamtmetall, the high wage settlement could force companies like All Metal to consider labor reductions. This could potentially lead to conflicts with trade unions, advocating for workers' rights.
Source: www.dpa.com
