Berlin – “The ecological and digital transformation of the economy must not lead to eastern Germany being further left behind. People need a sense of direction, especially during this transformation,” said Jörg Hofmann, President of IG Metall, at a works council conference in Berlin.
The states of Saxony, Brandenburg, and Saxony-Anhalt are being massively affected by the transition away from coal-fired power generation. Hofmann: “Structural aid for these states must be channeled into innovation and employment, as well as into infrastructure development. The mobility and energy transitions will only succeed if investments, funding programs, and research activities are coordinated.”
Even in regions without coal mining, substantial public and private investment is needed to prevent structural disruption. “The transformation must not lead to further deindustrialization. On the contrary, it offers opportunities for new, sustainable industrial jobs—including in the regions of eastern Germany—if the right political framework is established,” explained the President of IG Metall.
Many companies in eastern Germany are purely manufacturing operations that face high cost pressures and whose jobs are threatened by relocation. These companies, in particular, are ill-prepared for the transformation, as shown by a survey of works council members conducted by IG Metall for the Transformation Atlas. Above all, there is a lack of forward-looking workforce planning and strategies for managing the upheaval. “Companies are improvising instead of taking a strategic approach. This is a disastrous development given the already difficult situation regarding skilled workers in many companies,” criticized Wolfgang Lemb, executive board member of IG Metall.
If companies want to be attractive to job seekers, they must offer good working conditions. A high rate of collective bargaining coverage is therefore also in the companies’ interest. Lemb: “A race to the bottom on wages is not an industrial policy concept for eastern Germany. We need high-quality jobs—permanent, with employee participation, protected by collective bargaining agreements, and without disparities in working hours. That is the clear expectation of employees and the obligation of companies 30 years after the fall of the Berlin Wall.”
IG Metall opposes the establishment of special economic zones, such as those recently proposed by CDU Chairwoman Annegret Kramp-Karrenbauer for Lusatia. “Special economic zones spark envy in other regions and fuel a race to the bottom in wages, labor standards, and taxes,” said Lemb.
At the conference on Tuesday and Wednesday, 180 workplace representatives will discuss ecological and digital transformation, collective bargaining coverage, and industrial and structural policy. On Wednesday, Federal Minister of Labor Hubertus Heil will address the works council members.
