Frankfurt am Main – Businesses in eastern Germany have been less severely affected by the pandemic than those in western Germany, according to economic researchers. Nevertheless, the coronavirus has led to a sharp economic downturn in the east as well. In addition, companies there are more vulnerable to crises and are also heavily impacted by climate policy decisions. “The pandemic and the economic transformation must not lead to further deindustrialization in eastern Germany. Skills development and structural policy must work hand in hand to overcome the recession and manage the ecological transition,” demanded Wolfgang Lemb, executive board member of IG Metall, at the virtual Eastern Germany Works Council Conference on Wednesday.
IG Metall is a key contributor of ideas on structural policy. For Saxony, it has presented proposals to secure the region’s position as an industrial hub through its four-point plan. One central demand from this plan has been taken up by policymakers: the establishment of a Saxon industrial holding company to provide companies with liquidity. “However, we would have preferred that the state not settle for the role of a silent partner,” said Lemb. In this four-point plan, IG Metall also proposes expanding the Center for Securing Skilled Workers and Decent Work—agreed upon in the state’s coalition agreement—into a coordination center for crisis management and the sustainable shaping of the transformation. To mitigate the consequences of the crisis, co-determination is a key factor. “Only with strong works councils and a strong IG Metall can protective barriers be built for employees and companies. The past few weeks have impressively demonstrated this,” Lemb noted.
In his speech, former Bundestag President Wolfgang Thierse highlighted just how important the welfare state is, especially in times of economic upheaval. “In light of globalization, digital transformation, and, currently, the pandemic crisis, we know how essential it is to preserve and modernize the welfare state. Solidarity and security are key concepts and key tasks of democratic politics that seeks to provide convincing answers to the widespread sense of crisis, the dramatic nature of change, and the experiences of injustice in the present.”
The East German Works Council Conference takes place once a year; this time, due to the pandemic, it is being held virtually. At the conference, more than 60 works council members from eastern Germany are discussing transformation and how to navigate the recession. Key topics include employee participation in structural change, innovation, and digitalization.
Further information and press photos of Wolfgang Lemb
