Leipzig – IG Metall has called on companies and policymakers to work together to manage structural change in the automotive industry. On the occasion of the two-day conference organized by the Hans Böckler Foundation and IG Metall titled “Value Creation in Transition – The Role of Suppliers in the Automotive Industry,” IG Metall and works councils from the automotive sector adopted a communiqué. The communiqué sets out the principles for a fair and solidarity-based approach to structural change and calls for increased innovation to secure long-term employment. “Structural change in the automotive industry must not come at the expense of workers in Germany,” said Detlef Wetzel, President of IG Metall, on Wednesday in Leipzig. He also warned against arbitrary relocations of production and facilities abroad. “It is precisely the high-performing industrial clusters, as well as development and innovation partnerships along the value chain, that constitute the automotive industry’s key strength.”
The automotive industry remains the most important key sector in Germany and must continue to be so. Three-quarters of value added is generated by automotive suppliers. Therefore, it is unacceptable for manufacturers to use their market power to interfere in the business decisions of independent supplier companies. “These scandalous practices must be made public—and they must have consequences,” demanded Wetzel. This also requires extending collective bargaining coverage to contract labor firms. Contract labor arrangements entered into solely for the purpose of wage dumping are unacceptable. “We will continue our efforts to improve working conditions for employees, particularly in industrial contract logistics, industrial services, and development service providers,” said Wetzel.
“The automotive industry faces enormous challenges in terms of industrial policy,” said Jörg Hofmann, Second Chairman of IG Metall. In addition to ongoing price pressure, which is being passed down the value chain by companies, lightweight construction, e-mobility, climate protection, and digitalization are placing new demands on automakers and suppliers. Hofmann emphasized that while Industry 4.0 applications are not only transforming value chains, “co-determination structures must also be secured for the future.” “That is why the introduction of part-time training—agreed upon with employers this spring—is a key component in ensuring employees’ professional development.”
Automotive suppliers account for 40 percent of the industry-wide value added in research and development, and this figure is on the rise. “The development prospects of supplier companies also determine the future prospects of the German automotive industry as a whole,” the union representative warned. If suppliers are “squeezed dry by cost-cutting measures,” the necessary resources for actively shaping essential change processes will be lacking, and innovative capacity will be lost. Pressure on collective bargaining agreements, as well as on work and performance requirements, continues to increase. This must be prevented. “IG Metall and works councils can and will shape reality through joint, determined, and united action,” said Hofmann.
To the communiqué
