Metal and Electrical Industry Faces Significant Job Reductions

The metal and electrical industry is bracing for significant job cuts as Gesamtmetall President Stefan Wolf predicts a loss of 250,000 to 300,000 positions over the next five years. This reduction is attributed to a combination of high operational costs and a dwindling workforce due to the retirement of the baby boomer generation. Despite the expected layoffs, companies face the paradox of needing more labor to meet demand in the absence of sufficient workers.

Wolf has called for a comprehensive reform agenda, dubbed "Agenda 2040," aimed at addressing these challenges. This initiative echoes the earlier "Agenda 2010" and seeks to mitigate the impact of these job losses by tackling issues like high energy prices, corporate taxes, social contributions, and bureaucratic hurdles.

The situation is further complicated by ongoing wage negotiations where the labor union IG Metall is demanding a 7% salary increase. These negotiations, if unresolved, might lead to warning strikes slated to commence at the end of October.

The automotive sector, a significant part of the metal industry, also reflects these challenges. Companies like ZF Friedrichshafen and Bohai Trimet are planning substantial workforce reductions due to decreased demand and high energy costs. ZF Friedrichshafen alone is set to cut 1,800 jobs by the end of 2023 as part of a broader plan to eliminate 14,000 positions over the next four years in Germany.

Overall, the metal and electrical industry must navigate these tumultuous changes while seeking solutions to sustain its workforce and operational viability in the face of mounting economic pressures.