Frankfurt am Main – A recent survey of works council members from industries represented by IG Metall shows that many companies in Germany are not investing enough. Less than one-third (30 percent) of the works council members surveyed believe there is sufficient investment in their companies to meet the upcoming challenges of digitalization and climate-neutral production. The automotive sector stands out in particular: here, only one-fifth of works council members (20 percent) believe that sufficient investments have been made or are planned.
Prior to the conclusion of the coalition agreement, the affected companies cited unclear political framework conditions, insufficient demand, and excessively high energy prices as the main reasons for insufficient investment. The coalition agreement outlines plans for a significant reduction in energy costs for companies, the promotion of electric mobility, and the creation of conditions for comprehensive investment. The approved special fund for infrastructure is also intended to improve the situation for society and the economy.
Christiane Benner, President of IG Metall: “Together with us, employees have always strongly advocated for favorable conditions for industry and, consequently, for their jobs. Now that these conditions are outlined in many sections of the coalition agreement, companies have a basis for planning and should take action! We will push for the swift implementation of these measures.”
According to Benner, companies must take responsibility for future-proof business models, investments, and prospects for employees: “We recognize the gravity of the situation. But we also see that many companies lack future strategies and are failing to make necessary investments. Simply calling for less bureaucracy and lower labor costs is neither a strategy nor a solution.”
Key Leverage Points: Investment and Works Council Involvement
The correlation between a refusal to invest and the lack of a future strategy is striking. In companies with a future strategy, 36 percent of works council members see a lack of investment. In contrast, the refusal to invest by companies without a strategy is nearly twice as high, at 70 percent . “This is a logical correlation, but it makes the situation all the more dramatic when it comes to the future of these companies,” said Benner.
Only 6 percent of works council members in companies facing pressure to adapt their business sector are involved by their companies in strategy development. Another 31 percent of works council members are only partially involved.
IG Metall views the involvement of works councils in strategy formulation as one of the key factors for successful economic transformation. “Works councils usually know their company better than management does. Their expertise, knowledge, and often many years of experience should be drawn upon more often when it comes to strategy. Works councils also enable employees to be better involved when it comes to the future of their jobs. Where this happens, it leads to a positive experience of democracy. That is why they must be involved as experts in their own work,” union leader Benner emphatically demands.
Further information and figures:
Employee representatives from 2,321 companies, representing a total of over one million employees, participated in IG Metall’s works council survey.
72 percent of the companies surveyed are in the metal and electrical sectors; the rest are in the skilled trades, steel, and IT services industries.
Further information and press photos of Christiane Benner
