Frankfurt am Main/Leipzig/Stuttgart – Tens of thousands of workers demonstrated at an IG Metall day of action at all German automotive sites against the abusive use of service contracts for wage dumping and called on policymakers to consistently implement the laws announced in the coalition agreement. IG Metall is therefore calling on lawmakers to effectively prevent such abuse. To this end, works councils at the host companies need better rights to information. Employers must be required to inform the works council about any contracts for services used and the respective contracted company. Expanded co-determination rights for works councils are also necessary, as contracts for services can displace existing permanent jobs. And clear criteria are finally needed—as provided for in the coalition agreement—to distinguish contracts for services from temporary agency work and “solo self-employment.”
Today’s day of action is aimed not only at politicians but also at companies, said Detlef Wetzel, First Chairman of IG Metall, on Thursday in Leipzig. For all industry-related services, companies must conclude reasonable collective bargaining agreements with IG Metall. IG Metall has already achieved initial successes nationwide. At two rallies, Wetzel pointed out that, in nine Leipzig-based companies using work contracts alone, there are collective bargaining agreements with IG Metall covering approximately 2,500 employees. “IG Metall Leipzig has thus done pioneering work and set new standards,” said Wetzel. For example, BMW plans to give priority in the future to logistics service providers that can demonstrate a company-level collective bargaining agreement with IG Metall. “I am confident that we can achieve something similar at Porsche,” the union representative announced. At the same time, Wetzel pointed out that IG Metall is not fundamentally opposed to contract-for-service agreements, “but rather to those that are used exclusively to lower wages and worsen working conditions.”
Jörg Hofmann, vice chairman of IG Metall, also spoke out against the increasing outsourcing of activities that are part of a company’s core competencies. “By outsourcing, companies are streamlining their operations and raking in substantial profits: the cheapest contractor wins the bid,” Hofmann said in Stuttgart. In the automotive industry, for example, over 150,000 jobs in the areas of industrial logistics, development services, and industrial services have been outsourced. Those who suffer the consequences are the contract workers. For example, a materials supplier earning the minimum wage might receive only half the collectively bargained wage. On top of that, they get fewer vacation days and poor retirement benefits. “Companies pocket the difference as extra profits and completely shirk any social responsibility,” the union representative criticized.
According to a recent survey by IG Metall, over 4,000 works council members reported that more than two-thirds of companies now award contracts based on work agreements. This means the trend toward outsourcing has more than doubled since 2012.
For more information, visit: /vorstand/en/presse
