Custom duties or import taxes imposed on goods entering a particular country. - The Significance of the Metal Tariff Controversy in Baden-Württemberg
Bargaining sessions for salaries in the metal and electrical sector of Baden-Württemberg are commencing this week. The initial round commences on Wednesday at 2 pm in Kornwestheim, within the region of Ludwigsburg. The wage discussion might be grueling as employer and employee representatives had significant discrepancies in their requests prior to the negotiation.
Here's a rundown of the essential wage negotiations happening in Baden-Württemberg this year.
Why are these wage negotiations significant for individuals in the southwest?
This is crucial because the metal and electrical industry is the backbone of Baden-Württemberg's industrial sector. Approximately one million individuals work in this field, encompassing automobile manufacturers and their suppliers, as well as mechanical engineering.
What is IG Metall advocating for?
The principal demand is higher pay. The labor union is petitioning for a 7% increase in salaries for employees. Additionally, trainees and dual students deserve extra consideration, with an additional 170 euros per month. The contract should span 12 months.
What were the demands in other sectors last time?
Caution is essential when comparing demands, as numerous factors besides wage increases often affect negotiations, and the specifics may differ.
For example, the railway and transport union EVG recently requested a 7.6% wage rise during wage negotiations with private railway companies in Germany.
In the chemical industry, a consensus was reached in June for a general wage increase of 6.85%.
How are employers reacting to the union's demands?
Negotiator Harald Marquardt described the demand as "overly exorbitant and unreasonable in light of the overall situation." Many companies are barely breaking even or even incurring losses. "For them, any additional financial burden is already too much," said Marquardt.
Why could this round of negotiations be particularly challenging?
Because the industry is suffering. "The economic situation in our industry is poor," said employer representative Marquardt. There's no indication of recovery.
Car manufacturers like Mercedes-Benz or Porsche have recently experienced decreased sales, profits are under strain, and expenses are a growing concern. Suppliers have mostly been making headlines due to job cuts. Moreover, mechanical engineering in the southwest has yet to meet last year's order figures.
When could a settlement be reached, and what part does Baden-Württemberg play in this?
It's challenging to predict. An agreement after the initial round of negotiations is not likely. In the previous wage round in the fall of 2022, the negotiations went on for about two months longer.
IG Metall's Baden-Württemberg district typically carries significant influence in wage negotiations. Nationwide, regional negotiations occur first, followed by the establishment of a pilot district, whose agreement is then adopted with minor modifications by the other districts. This pattern has often emerged in Baden-Württemberg, as it did during the previous wage round.
Could work stoppages pose a threat to the affected companies?
Yes, if they fail to reach an agreement by the end of October. At that point, the so-called peaceful period concludes, and work stoppages may arise and become likely.
Given the crucial role of the metal and electrical industry in Baden-Württemberg, electrical engineering graduates and professionals should closely follow these wage negotiations. The outcome could significantly impact their salaries and working conditions.
Moreover, electrical engineering students and trainees in this region might also benefit from any salary adjustments, as IG Metall has included them in their demands for higher wages.
