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PRESS RELEASE Energy Prices: Industrial Unions Call for Aid for Hard-Hit Sectors

Joint Press Release from IG Metall, IG BCE, and IG BAU

IG Metall, Mainforum, Gebäude, Fahnen

29 March 2022 29 March 2022


Berlin – In light of rapidly rising energy prices and looming supply shortages, the presidents of the three industrial unions within the DGB see jobs in Germany at risk in the medium term. Russia’s war of aggression against Ukraine—which IG Metall, IG BCE, and IG BAU strongly condemned—is driving energy prices in Germany to dangerous levels, threatening the country’s position as an industrial hub. At a press conference in Berlin, union leaders called on the federal government to not only implement a medium- and long-term shift in energy policy but also to take short-term measures to cushion the burden on particularly energy-intensive sectors and thus secure jobs. Specifically, the unions are calling for, among other things, liquidity assistance, the option of short-time work, and a reduction in the value-added tax on electricity (see the full position paper).

Jörg Hofmann, President of IG Metall:

“Integrated value chains are of fundamental importance for Europe as a business location. As a basic materials industry, the steel industry stands at the beginning of this value chain and, together with the manufacturing sector, safeguards the industrial base. That is why it is crucial for preserving good jobs—far beyond the steel sector—to find an industrial policy response now to the alarmingly rising energy prices. There must be no taboos in this regard. We call on the federal government to seriously consider, for example, providing liquidity support for particularly affected companies and safeguarding employees in the event of production cutbacks due to excessively high energy costs.”

Michael Vassiliadis, Chairman of IG BCE:

“We must now proceed with great caution and utilize every bit of energy capacity we still have. It is essential to maintain the production of vital goods—such as those for daily life, the energy transition, or the urgently needed housing construction. Skyrocketing energy prices, but above all a potential gas embargo, would hit energy-intensive industry—the backbone of the industrial network—hard. The consequences would not only be short-time work and job losses, but also the rapid collapse of industrial production chains in Europe—with global repercussions. It must be the goal of us all to avert this.”

Robert Feiger, Federal Chairman of IG BAU:

“A high-performing lime and cement industry is indispensable as the foundation for the entire construction and finishing sector, which employs around 3.4 million people. However, the production of lime and cement is very energy-intensive. To keep the construction industry running, the federal government must do everything in its power to ensure energy supplies even in the current crisis situation and, if necessary, cushion extreme increases in energy prices. Even in these uncertain times, the construction industry is once again proving to be a stabilizing force. For example, during the pandemic, it served as a true economic engine for the German economy. In a sense, the construction industry is also systemically important; for instance, housing construction must be stepped up even further in light of the influx of refugees from Ukraine.”

Joint position paper by IG Metall, IG BCE, and IG BAU.

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