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Impending Job Losses in Metal and Electrical Industries
2024-10-16 05:40:08
Business
Economy
Politics

Impending Job Losses in Metal and Electrical Industries

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The metal and electrical industries are poised to face significant challenges, with expected job losses of 250,000 to 300,000 over the next five years. Despite ongoing labor shortages, the industry must adapt by increasing work output.

Stefan Wolf, President of Gesamtmetall, highlights the urgent need for structural reforms akin to the Agenda 2010, advocating for a new 'Agenda 2040'. The sector is grappling with high energy prices, taxes, and bureaucratic burdens, contributing to a structural crisis.

Current employment stands at around 4 million, yet the upcoming retirement of baby boomers exacerbates the labor shortage. Wolf stresses the necessity of flexible working hours to mitigate these issues and aims to ensure that job reductions are handled as socially responsibly as possible.

As tariff negotiations proceed, potential industrial action looms on the horizon.

Related news on that topic:

Crisis in the North German Metal and Electrical Industry

The North German metal and electrical industry faces a significant crisis, marked by alarming statistics. A staggering 40% of companies report having no orders, while capacity utilization stands at a mere 82%, the lowest in almost two decades. Compounding the issue, 71% of firms do not anticipate any sales growth, prompting 22% to consider relocating production, particularly in the automotive and aerospace sectors. The attractiveness of Germany as a production location is diminishing for two-thirds of these companies, primarily due to escalating costs. Industries such as foundries, metal products, and mechanical engineering are notably impacted. As collective bargaining unfolds, the Lürssen Group calls for a timely resolution, while AGV Nord and the federal government are urged to streamline taxes and reduce bureaucratic hurdles. Alarmingly, 19% of companies are cutting jobs amidst an ongoing shortage of skilled workers and a lack of training applicants. A recent study emphasizes the urgent need for investments amounting to €1.4 trillion by 2030, likening it to the post-World War II Marshall Plan. These funds are crucial for infrastructure improvements, digital transformation, and addressing the skilled labor gap. Unfortunately, smaller and medium-sized enterprises struggle to benefit from existing funding programs. The situation is exacerbated in Bavaria, where industrial production has shrunk by 4.4% from January to August 2023, with the machinery sector declining by 6.9%. Overall, industry leaders warn of dire consequences if action is not taken, calling for a comprehensive reform agenda to revitalize the sector.

Wage Disputes in German Industries

Recent collective bargaining negotiations in Germany's metal and electrical industry have become a focal point of labor discussions. Employers offered a 3.6% wage increase over 27 months for more than 130,000 workers in Northwest Germany, alongside a one-time payment and additional leave days. However, the union, IG Metall, demanded a 7% salary hike and a 170€ increase for trainees, advocating for a shorter contract duration of 12 months. They argue that the proposed wage increase fails to counteract inflation and maintain workers' purchasing power. Similarly, in Bavaria, employers proposed a 3.6% wage increase for 870,000 workers. Yet, IG Metall insists this offer is insufficient to boost economic activity or strengthen purchasing power. The union suggests that without a substantial improvement in the offer, potential strikes could follow the expiration of the peace obligation on October 28. In parallel, the confectionery industry faces its own wage disputes. The NGG union is demanding a 9.9% salary increase, while employers have countered with a 2.8% offer. With negotiations at a standstill, 2,000 workers in Berlin's confectionery sector have been called to a 16-hour warning strike. Across these industries, the central theme is the tension between unions demanding higher wages to match living costs and employers citing economic difficulties as a reason for modest offers. The ongoing negotiations highlight the broader struggle to balance employee compensation with economic sustainability in challenging times.

Read 8 more recent news on this topic

The press radar on this topic:

gmx
15. Oktober 2024 um 23:03

Association: Many metal and electrical jobs will be lost

Economy
Gesamtmetall President Stefan Wolf expects 250,000 to 300,000 job losses in 5 years. Despite labor shortages, more work must be done. He calls for flexibility in working hours. According to Wolf, the industry is in a structural crisis; energy prices, taxes, levies and bureaucracy are too high. The last good structural reform was the Agenda 2010; now an Agenda 2040 is urgently needed.
Frankfurter Rundschau
15. Oktober 2024 um 23:02

Association: Many metal and electrical jobs will be lost

Economy
Politics
Finance
Gesamtmetall President Stefan Wolf expects that 250,000 to 300,000 jobs in the metal and electrical industry will be lost in the next 5 years. The industry is in a structural crisis; Wolf calls for an "Agenda 2040" based on the model of the controversial Agenda 2010.
Tagesspiegel
15. Oktober 2024 um 23:02

Economy: Association: Many metal and electrical jobs will be lost

Economy
Gesamtmetall President Stefan Wolf expects that 250,000 to 300,000 jobs in the metal and electrical industry could be lost in the next 5 years. The companies want to design the job cuts in a socially acceptable manner, although there is a shortage of workers at the same time. Wolf calls for more flexibility in working hours and an "Agenda 2040" as a structural reform, since the last major reform was the controversial Agenda 2010.
tz
15. Oktober 2024 um 23:02

Association: Many Metal and Electrical Jobs Will Disappear

Economy
Politics
Gesamtmetall President Stefan Wolf expects that 250,000 to 300,000 jobs in the metal and electrical industry will be lost in the next 5 years. He calls for more flexibility in working hours and a new "Agenda 2040" based on the model of the controversial Agenda 2010.
CW

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