The IG Metall union is considering a new approach for the next round of collective wage negotiations in the automotive sector. Union representatives are advocating for automatic wage increases for companies that demonstrate particularly strong profitability.
Daniel Friedrich, the IG Metall regional head for the Coast, told the “Süddeutsche Zeitung” (Friday edition) that they require an agreement that is equitable for all involved. He pointed out the severe pressure facing auto manufacturers and their suppliers, contrasting this with the high earnings of sectors like defense and medical technology.
Knut Giesler, the IG Metall regional head for North Rhine-Westphalia, suggested that if firms earn less than 2.3 percent in revenue return, they could automatically be required to reduce some parts of their wages. Instead, he and Friedrich are proposing an automatic wage supplement for companies that achieve a significant return.
Giesler explained that this could involve increasing the “T-Geld” benefit-currently 18.4 percent of a month’s income. If this benefit were doubled starting at a revenue return of 4.6 percent, a skilled worker with a middle income of €3,917 per month could receive a bonus of well over €700. Such an arrangement could benefit roughly 30 percent of the industry’s workforce.
Despite these demands, the union stated it is willing to offer further concessions to companies facing serious economic crises. “In times like these, we need a new tool for companies that are struggling particularly badly,” Giesler emphasized.
However, Giesler rejected calls to eliminate the 35-hour work week. He argued that since major car conglomerates continue to issue dividends, it is indefensible to ask workers to work more hours just so the company can issue a dividend. Furthermore, he contended that simply adopting a 40-hour week would not be enough to compete with highly subsidized Chinese manufacturers. Instead, he argued that the path forward requires industrial policy that supports the development of key industries and reduces energy costs.
