Frankfurt am Main – “You can’t show solidarity alone”—the motto for this year’s May 1st was set even before the COVID-19 pandemic, but it could not be more apt for the current situation. “Everyone is affected by the pandemic in one way or another. Whether they work at a medium-sized mechanical engineering firm, an automaker, or a small business: Many workers are worried about their future and that of their families. Solidarity is now the order of the day. For IG Metall, the top priorities are protecting workers’ health and securing jobs and incomes,” said Jörg Hofmann, President of IG Metall, on Wednesday in Frankfurt.
In recent weeks, IG Metall has achieved a great deal for workers. Despite the deep economic crisis and the complete standstill of entire industries, short-time work has been implemented across the board in workplaces, thereby largely preventing layoffs to date. Collective bargaining agreements also secure the jobs and incomes of millions of workers. In addition, IG Metall urged the government to take decisive action. Examples include the collective bargaining and statutory increases in short-time work benefits, the extension of unemployment benefits, aid packages for businesses and companies, and health and safety standards. These measures have been incorporated into the binding health and safety standards adopted by the Federal Ministry of Labor. Hofmann: “Once again, the role of unions with large membership bases is proving its worth in times of crisis as a solid anchor of economic and social stability. The crisis shows that policy approaches based on the notion that everyone is best off on their own are misguided.”
The crisis has taken a deep toll on society. More than 700,000 businesses have now registered for short-time work. Hofmann: “This deepest economic recession resulting from the pandemic will continue to occupy us for months to come. Now is the time for social partnership to prove its worth. The goal is to overcome the crisis together with today’s workers and invest in a sustainable future.”
Employees have contributed to crisis management by drawing down their working time accounts or using up vacation days, as well as by accepting pay cuts during short-time work at many companies. “Without these contributions from employees, many companies would already be insolvent or in dire straits today. We now expect employers to take responsibility for jobs and business locations, rather than resorting to layoffs and relocations,” said Hofmann.
The IG Metall chairman is calling for a debate on the criteria used in allocating public funds for aid programs. “Companies that receive government aid must not use it to finance layoffs and restructuring plans. Nor can I imagine that there will be no cuts to executive salaries and dividends when these aid programs are utilized.”
Hofmann also criticizes the fact that employers are campaigning against higher short-time work benefits while at the same time receiving reimbursement for all social security contributions—including the employee’s share—when short-time work is implemented. “Employees have helped finance this relief for companies through their contributions and are now demanding support as well.”
Overcoming the COVID-19 crisis while simultaneously tackling ecological and digital structural change: this is the dual challenge facing policymakers and the business community. Hofmann: “This demanding task can only be accomplished with more investment. That is why we need an economic stimulus package to provide growth momentum as we emerge from the crisis. We must advance the energy and transportation transitions, accelerate the shift to alternative propulsion systems, and expand infrastructure. Such an economic stimulus program must be coordinated at the European level.”
This also includes considering how the automotive industry—a key European sector—can regain momentum. “We won’t be able to avoid offering purchase incentives. In addition to a fair distribution between government aid and contributions from automakers, these incentives should be designed in such a way that they help reduce CO2 emissions and support employment among suppliers and manufacturers. This requires an open approach to technology.”
Further information and press photos of Jörg Hofmann
Watch Jörg Hofmann’s video statement
To the video statement by Christiane Benner
To Jürgen Kerner’s video statement
To the podcast with Irene Schulz
More information
