Berlin – In light of the loss of tens of thousands of jobs in Germany, IG Metall is calling for a new realism in matters of industrial and trade policy. “The world of a rules-based trading order has imploded. The U.S. and China have turned their backs on fair competition,” said IG Metall President Christiane Benner at the union’s industry conference in Berlin. “We must counter this new reality. Less government is the wrong approach; an active government must be the guiding principle. We need an active industrial policy with a vision for shaping the future. The market alone will not fix things.”
Mandating Local Value Creation
IG Metall is convinced that mandatory local content regulations are a key response to the new geo-economic reality. “Local content is the logical response to a world in which tariffs, subsidies, and unfair trade practices have long since come to define everyday life,” said Jürgen Kerner, Second Chair of IG Metall. “Anyone serious about strengthening resilience, protecting critical technologies, and reducing dependencies cannot ignore local content.”
The union is therefore calling for binding quotas, obligations, and requirements to bring more value creation back to Germany and Europe. “Market access doesn’t come for free. Anyone who wants access to our markets must also invest here—in locations, jobs, and value creation,” Kerner demanded before representatives from politics, academia, and industry. He warned of the consequences should such regulations fail to materialize: “Then we’ll be financing the restructuring of our industries, the ramp-up of electric mobility, and the energy transition—only to end up purchasing key components from overseas, making ourselves dependent, and exposing critical infrastructure, while our factory floors remain empty.”
Staying the Course on the Energy Transition
The union views the recently published monitoring report on the energy transition from the Federal Ministry for Economic Affairs with skepticism. “The report must not be used as a justification for slamming on the brakes on the energy transition,” Kerner warned. “Electricity demand will indeed rise exorbitantly in the coming years. We all have a stake in seeing it rise—with more electric cars, heat pumps, and electrified industrial processes.” Gas-fired power plants, which are fundamentally useful as a bridge technology, should not be pitted against solar, wind, and biomass.
Rather, IG Metall is calling for a massive expansion of the power grids, more storage and electrolysis capacity, expedited permitting processes for industrial sites, more direct supply to commercial and industrial small and medium-sized enterprises, more effective use of existing grid infrastructure, and a significant expansion of the distribution grid. Long-term financing and the necessary subsidies must be secured. In addition, IG Metall continues to push for the rapid introduction of a competitive industrial electricity price of 5 cents per kilowatt-hour. Jürgen Kerner: “The industrial electricity price must serve as the bridge that provides planning certainty until sufficient affordable electricity from renewable energy sources is available.”
No tricks with the special fund!
In addition to setting the right course in trade and energy policy, IG Metall is convinced that the economic crisis requires massive public investment. The Special Fund for Infrastructure and Climate Neutrality must therefore be swiftly allocated to and spent on concrete investment projects. Benner insists that the criterion of additionality be taken seriously: “Investments earmarked in the core budget must not be shifted to the special fund.”
Furthermore, the federal government must swiftly launch the “Germany Fund” announced in the coalition agreement. This fund is intended to close investment and financing gaps, particularly among small and medium-sized enterprises (SMEs). According to the plan, the federal government intends to commit 10 billion in its own funds, which are to be leveraged to at least 100 billion with the help of private capital and guarantees. “Small and medium-sized enterprises in the automotive supply industry must also have a chance here if they want to invest in sustainable business models,” demands Christiane Benner. “All too often, they are currently unable to secure financing, even when they have good ideas.”
At the IG Metall Industry Conference taking place today and tomorrow, September 23 and 24, around 250 works council members are gathering in Berlin to discuss current industrial policy issues with experts from industry, academia, and politics. This is the first time the conference is being held in this format. It marks the start of further discussions with policymakers, associations, companies, academia, and civil society.
