Frankfurt am Main – The IG Metall Executive Board has spoken out in favor of a day of action in support of a transitional electricity price. On November 24, thousands of workers will hold public rallies at various locations across Germany to demand temporary relief from electricity prices for energy-intensive industries. IG Metall is convinced that job cuts and plant closures cannot be prevented in the long term without such measures. In its first meeting, the newly elected executive board of IG Metall assessed the electricity price package recently agreed upon by the “traffic light” coalition parties as insufficient.
Relief is Marginal
“It’s good that the federal government is taking action on the issue of electricity prices. However, the planned measures fall far short and do not solve the specific problems faced by energy-intensive industries competing on the international stage. The relief these measures provide for these companies is marginal,” said Jürgen Kerner, Second Chairman of IG Metall, following the executive board meeting. “The ‘traffic light’ coalition parties must make targeted improvements to their package; otherwise, we must expect that the first companies will announce concrete relocation plans as early as this spring.”
Energy Price Shock from the War in Ukraine Persists
Electricity prices in Germany have skyrocketed due to the energy crisis triggered by Russia’s war of aggression and remain far from normalizing to this day. The industrial electricity price in Germany is still about twice as high today as it was in 2021. Energy-intensive sectors such as the steel, aluminum, foundry, and forging industries—as well as the chemical and cement industries—are being hit particularly hard, and in two ways: Due to their specific production processes, their energy requirements are high and production costs are consequently expensive; at the same time, these companies face international competition from countries where electricity is significantly cheaper.
IG Metall Warns of a Domino Effect
IG Metall therefore considers targeted support for the affected companies to be essential until, in a few years, sufficient affordable electricity from renewable sources becomes available. In calling for a temporary cap of 5 cents per kilowatt-hour, the union is primarily focused on the jobs directly at risk in the affected sectors, but also warns of a domino effect: “The basic materials industries are the foundation of our industrial model. If we lose them, other industrial sectors will disappear from Germany in the long term,” warns Kerner. “The cap for selected energy-intensive companies will thus indirectly benefit the entire industrial sector.”
Support Not at No Cost
A key component of IG Metall’s proposal is that the price cap must be tied to certain conditions. “The bridge electricity price must not come at no cost,” says Kerner. “Only companies that adhere to collective bargaining agreements, secure their locations and jobs, and invest in the transition may benefit. After all, our goal is not simply to preserve old industries, but to enable the transition to climate-neutral production in Germany. So that the jobs of the future are created right here in this country.”
Further information and press photos of Jürgen Kerner
