Frankfurt – Despite political and economic uncertainties, the situation for companies in the metal and electrical industries remains overwhelmingly solid. This is the result of a survey of works council members conducted by IG Metall, in which works council members from approximately 3,360 companies participated over the past two weeks.
Scaremongering is unfounded
Jörg Hofmann, President of IG Metall, therefore warns—in light of the survey results—against the scaremongering recently heard from the employers’ side: “The many uncertainties given the broader political climate naturally lead to unease and tension within companies as well. In some small and medium-sized businesses where energy costs account for a large share of expenses, the situation is indeed serious. These companies need swift, targeted support from policymakers. Overall, however, there is no cause for doom and gloom. This is confirmed by the key figures from our survey.”
High Capacity Utilization, Many Orders
According to the survey, three-quarters of companies report good or very good figures regarding capacity utilization, order backlog, and new orders. About two-thirds of companies are currently generating good or very good revenue. The picture is mixed when it comes to profits and investments. Here, just under half of the works council members surveyed rate the situation as good or very good. However, this leads to acute liquidity bottlenecks in only 12 percent of companies. Only slightly more than two percent of companies face a risk of insolvency in the next three months.
Rising Prices Are Being Passed On
According to the survey, significantly more than two-thirds of companies are passing on price increases, at least in part. This is significantly more than in the spring of this year, when, according to works council estimates, only just over half of companies were able to do so.
The employment situation has also remained largely stable so far. Just under a quarter of the works councils surveyed report current hiring of permanent staff.
Collective bargaining demands are feasible
Based on the survey, Jörg Hofmann sees IG Metall’s position in the ongoing collective bargaining round for the metal and electrical industries as confirmed: “Our collective bargaining demand is and remains reasonable and is quite clearly feasible for companies in the industry. Employers must finally put a substantial offer on the table. They owe this not only to their employees. As bargaining parties, we must now ensure that purchasing power stabilizes in order to prevent a deeper recession in the German economy.”
Between September 26 and October 9, 2022, IG Metall surveyed works councils organized within the union about the economic situation at their companies. Employee representatives from approximately 3,360 companies within IG Metall’s organizational scope participated in the survey.
Survey Results
