Just before the outbreak of the war in Iran, employee representatives in companies viewed the economic outlook more positively than they had in nearly three years. This is shown by the IG Metall works council survey conducted in March 2026. The uncertain geopolitical situation now threatens to undo this improvement in sentiment.
“The federal government must now do everything in its power to mitigate the economic consequences of the war in Iran,” demands Christiane Benner, First Chair of IG Metall. “In particular, rising energy costs must not jeopardize the economic recovery and jobs. Every euro of public money that curbs costs, supports growth, and promotes employment is money well spent in this situation.”
In addition to the slightly positive economic outlook, the survey also reveals a decline in short-time work as reported by works council members. Nevertheless, they see an urgent need for action: even before the war in Iran, according to the respondents, their companies’ investments at their locations were too low to meet the challenges ahead.
Survey participants identify three specific political causes for the low level of investment:
- unclear political and legal frameworks,
- excessively high energy prices,
- slow or complicated approval procedures.
Dissatisfaction with the federal government is correspondingly high: 86 percent believe the government is doing too little to maintain Germany as a manufacturing hub.
For employee representatives, the answers that policymakers must provide are clear: immediately lower energy prices, responsibly expedite procedures, and sensibly reduce bureaucracy. However, the respondents do not place the onus solely on the government. Nearly two-thirds of works council members also believe that decision-making and change processes within the companies themselves are too slow.
Union leader Benner comments: “Yes, we need to cut red tape in public administration and establish framework conditions that won’t be overturned overnight. But a look at the reality within companies shows that employees there, too, suffer from overly bureaucratic internal processes—more than two-thirds say so in our survey! The call for openness and flexibility therefore extends to the rigid hierarchies and cumbersome management structures found in many companies.”
In its “Initiative for Jobs and Economic Recovery ,” IG Metall has signaled a clear willingness to immediately address the issue of faster decision-making processes on the ground in workplaces. The same applies to the debate on sick leave, regarding which the union has announced a “proactive health policy.”
Works council members are also monitoring sick leave rates at their workplaces. Nearly two-thirds (63 percent) of works council members attribute this to increased psychological strain and work-related stress factors.
A weaker welfare state does not address this challenge; rather, it tends to exacerbate it. Respondents, too, are fed up with these sham debates. Ninety-four percent oppose abolishing the eight-hour workday. Collective bargaining agreements and company agreements—which respondents, as key players within their workplaces, are particularly well-positioned to assess—already provide sufficient flexibility in this regard.
Christiane Benner: “The survey shows: The time to act is now! This applies equally to businesses and policymakers. Create framework conditions that protect and secure the economy! Invest in Germany as an industrial hub and in the workers here! No one needs distractions like sham debates about shirkers or unlimited working hours. They neither secure jobs nor foster innovation.”
Further information on the survey:
IG Metall’s works council survey has been conducted every six months for several years. The current survey period ran from February 16 to March 6, 2026. Employee representatives from 2,452 companies nationwide participated. These companies collectively represent over 1.3 million employees.
Further information and press photos of Christiane Benner
