Press Statement 1st Steel Summit, October 22, 2018, Saarbrücken

Jörg Hofmann, President of IG Metall, on the Steel Alliance:

Jörg Hofmann, President of IG Metall, expects the Steel Alliance to provide impetus for industrial policy in the sector. Hofmann: “The Steel Alliance should make it clear that joint efforts by companies and policymakers are needed so that the industry can remain competitive in the long term.” The union leader sees the steel industry facing three challenges: oversupply on global markets (even though China has recently taken capacity off the market), climate protection and emissions trading, and digitalization.

German steel companies would have good prospects if they manufactured innovative products using environmentally friendly production processes, says Hofmann. “To achieve this, research activities must be stepped up. Companies should join forces to form research consortia. That is the fastest and most successful way to drive innovation forward. Policymakers must make such collaborations possible.” Jobs, too, depend on innovation. If innovation fails to materialize, employment is at risk.

In recent years, productivity in the steel industry has risen sharply. In 1980, 42 million metric tons of steel were produced in West Germany by 270,000 employees. Today, the same amount is produced by 85,000 employees. Digitalization will bring a further wave of rationalization. Hofmann therefore calls on companies to step up their efforts in workforce training. In addition, works councils need the right to take the initiative so they can make continuing education mandatory.