PRESS RELEASE IG Metall demands an 8.5 percent pay increase for employees at car dealerships and repair shops

Frankfurt am Main – Employees at car dealerships and auto repair shops are to receive an 8.5 percent pay increase. This was decided on Tuesday by the IG Metall executive board in Frankfurt ahead of the upcoming collective bargaining round for the automotive trade. “Prices and working conditions are putting more strain on employees than ever before. They urgently need sustainable wage increases now,” said Ralf Kutzner, executive board member of IG Metall.

Specifically, in addition to the 8.5 percent wage increase over 12 months, the union is calling for a social component, for example in the form of an inflation adjustment bonus. For apprentices, IG Metall is seeking disproportionately higher apprenticeship wages.

Companies Are Looking for Skilled Workers but Are Driving Employees Away

According to an IG Metall survey of 4,700 employees at auto repair shops and car dealerships, work has become harder and more stressful for 82 percent of them in recent years. Nearly two out of three employees are considering changing employers: Their basic willingness to resign is high (37%) or even very high (25%). According to two-thirds (69%) of those surveyed, their companies are currently losing skilled workers.  

Ralf Kutzner: “The mood in car dealerships and repair shops is alarming. Inside, technological change and working conditions are putting pressure on employees; outside, it’s prices.  Any employer who drives their people away now is jeopardizing the mobility of tomorrow. Our colleagues expect good collective bargaining agreements and full steam ahead for more pay and recognition!” In the IG Metall survey, 91 percent of respondents stated that they are feeling the impact of rising energy and food prices very keenly in their wallets.

Industry’s Economic Situation Is Strong

87 percent of employees report a strong order situation. Ralf Kutzner: “The new and used car business is booming, orders are piling up outside the repair shops, and profits are hitting record highs. Employees are giving it their all—and for that, they must now receive an 8.5 percent pay raise.”

The automotive industry employs 435,000 people nationwide. 91,000 employees are covered by a collective bargaining agreement. In 2023, IG Metall will conduct automotive collective bargaining negotiations simultaneously and on a decentralized basis across its districts. The no-strike clause ends on March 31, 2023. Warning strikes are possible starting April 1.

Further information and press photos of Ralf Kutzner