Hanover – IG Metall is calling on companies and policymakers to create future prospects, particularly for workers in the supplier industry. “The extent of indifference and irresponsibility toward the domestic location has reached a new level,” declared 220 works council members at the IG Metall Supplier Conference in Hanover. Jörg Hofmann, President of IG Metall, called on companies and policymakers to provide more support: “Social measures to accompany the transformation are indispensable. Taxpayers cannot be expected to foot the bill for the transformation of processes and products—amounting to billions—while at the same time imposing austerity measures on the workforce during their own transformation.”
With nearly 800,000 employees, the automotive and supplier industry is one of the core sectors of the German economy. Over 200,000 employees currently work directly in the powertrain sector. According to IG Metall’s “Hanover Declaration,” the goal must be to preserve industrial value creation in Germany, the innovative strength of suppliers, and thus jobs: “Developing the industry in a way that ensures its future viability and shaping the transformation in a socially and environmentally responsible manner are central tasks for policymakers, companies, and unions.” Instead, more and more companies are relocating their production and development to other European and Asian countries. According to an IG Metall survey in Baden-Württemberg, 44 percent of supplier companies are already doing so, and another 14 percent are planning to do so.
To ensure a socially and environmentally responsible transformation of the supplier sector, IG Metall calls for:
- Co-determined Future Strategies: “We call on companies to work together with works councils on an equal footing to develop new business models featuring future-proof products.” It is important to increase the depth of value creation in Germany, reduce dependence on other countries, and focus more on new areas such as battery cells, recycling, and the circular economy. Regional transformation networks present an opportunity to achieve this. Investments in future-oriented products at existing locations are crucial. “IG Metall will actively push for future-oriented collective bargaining agreements with the participation of the workforce, thereby securing commitments to locations and products as well as employment.”
- Fair Competition: German and European policymakers must not allow workforces and locations to be pitted against one another economically. There is therefore an urgent need for responses—such as to the “Inflation Reduction Act”—through an active and strategic industrial policy for Europe as the leading market for a successful energy and mobility transition. Small and medium-sized enterprises, in particular, need innovative models for liquidity and equity support. European funding policy must take all regions into account.
- Proactive Skills Development: Businesses and policymakers must invest in employees and also enable them to pursue a second vocational training program during their working lives. “Innovations arise in the minds of workforces that are well-qualified and motivated,” the statement reads. Training grants and subsidized training leave are important first steps, but they must not be derailed by financial constraints.
“Those who receive subsidies must also be obligated to invest in their locations in Germany and secure employment,” the position paper states.
Hanover Declaration
