PRESS RELEASE NO. 03/2021 IG Metall calls for sustainable industrial development for eastern Germany

Frankfurt am Main — At their conference titled “East German Industry—Between Risk and Opportunity in the Socio-Ecological Transformation,” representatives from IG Metall, academia, and works councils debated structural policy options today, Thursday, to secure and create sustainable jobs through new, sustainable products and new business models. They emphasized the need to take into account the structural differences that still exist between East and West.

Wolfgang Lemb, executive board member of IG Metall, said: “In terms of structural and employment policy in the East, we must learn from the past and advocate for sustainable industrial jobs.”

At the conclusion of the conference, the participants adopted a declaration containing five key demands for structural policy development in eastern Germany.

• Conditional Economic Support: The disbursement of subsidies for restructuring or new business establishment must be tied to certain conditions. These include, in particular, the existence of works councils and the non-obstruction of works council elections, collective bargaining coverage, and investment in training and continuing education.
• Financing/Access to Investment: Through a transformation fund, the government could take equity stakes in companies capable of manufacturing future-proof products but lacking the equity capital for major investments in new technologies.
• Skills Development: For a long time, the East German workforce was considered consistently highly skilled due to its well-trained skilled workers; now, this locational advantage is at risk of being lost in the coming years. The government and companies can and must facilitate closer collaboration between continuing education institutions, companies, and works councils to prepare employees for new requirements through tailored, co-determined training programs.
• Promotion of Networks/Clusters: Having entire value chains within the region is crucial for the stability and sustainability of industrial structures and quality jobs. To achieve this, the expansion of research and development, close ties to research institutions, and strategic cooperation with other companies in the region are essential.
• Infrastructure Development: Infrastructure (transportation, energy, digital networks) is a fundamental prerequisite for regional development. Since this requires not only private but, in particular, public investment, the political influence and relevance of an active and coordinated industrial policy are especially significant.

Especially in the 2021 super election year, IG Metall will hold policymakers accountable for their commitment to equalizing working and living conditions in the East and West.

Further information and press photos of Wolfgang Lemb