Frankfurt am Main – IG Metall welcomes the inclusion of its key demands in the CDU/CSU and SPD coalition agreement presented yesterday and is urging swift implementation.
Christiane Benner, President of IG Metall, on the automotive industry: “Given the global political and economic situation, it is both positive and important that the coalition negotiations were conducted swiftly and brought to a successful conclusion. The focus on industry is clear. Our colleagues need a clear roadmap, which the coalition agreement provides in many areas: urgently needed measures to promote electric mobility—such as exemptions from vehicle tax, special depreciation allowances for electric cars, and the expansion of the charging infrastructure—are included. We support an open approach to technology. Now these measures must be implemented to secure jobs in the automotive industry.”
The First Chairwoman also commented on the plans regarding co-determination: “Co-determination is to be expanded; the further development of the minimum wage, the commitment to a new Federal Collective Bargaining Compliance Act, and the announcement of a digital access right for unions are further important achievements. The possibility of holding works council elections online is to be established.”
Jürgen Kerner, Second Chair of IG Metall, on the industrial policy initiatives: “The coalition agreement now describes IG Metall’s key industrial policy demands as initiatives. This is an important step. An industrial electricity rate for energy-intensive companies and further measures to ensure competitive energy costs are essential in this regard. Our long-standing demand to link the allocation of government subsidies to social and environmental criteria—such as securing business locations and CO2 emissions—is included in the coalition agreement. This also applies to our call for green flagship markets. All of these are essential steps toward protecting the jobs of many of our colleagues in our industries and keeping industrial work in Germany. Now, first and foremost, the focus must be on swift implementation. And second, companies must immediately take the initiative to secure the future of their German locations, invest in development and operations, and safeguard employment.”
Union leader Christiane Benner takes a negative view of proposals regarding basic income and migration: “We view the plans for a new basic income for job seekers critically; the measures described represent a step backward, not a new beginning. Making it easier for skilled workers from abroad to settle in Germany through streamlined procedures and language courses is important both socially and economically. However, we are very critical of the tightening of restrictions on those seeking protection and on asylum law. These are the result of the destructive migration debates of recent months.”
Social Policy: Another positive aspect worth highlighting is that the coalition agreement does not include any cuts to pensions, health care, or long-term care. The pension replacement rate is to be guaranteed at 48 percent through 2031, and the full pension after 45 years of insurance coverage will remain in place. However, a pension commission is set to examine a “new benchmark” across all pillars of the pension system in the near future. Here, IG Metall, together with the other DGB unions, will continue to exert intense pressure. The same applies to our involvement in the planned commissions tasked with deliberating on the necessary reforms to health and long-term care insurance.
The new basic income support for job seekers marks a return to the sanction-based logic of the Hartz IV system. Prioritizing job placement, penalties, and the withdrawal of benefits represent a step backward, not a new beginning. Particularly serious are the planned abolition of the waiting period for assets and the linking of exempt assets to lifetime earnings.
Economic and Tax Policy: The coalition agreement promises important incentives for increased consumption and investment—but some of these are too late, too vague, or not targeted enough. The reduction in electricity prices and income tax for low- and middle-income earners will provide relief for many households in Germany. However, the income tax relief is not scheduled to take effect until the middle of the legislative term—and the exact form and scope of the relief remain unclear. Instead of an investment premium, there will only be a declining balance depreciation for capital investments during the first three years. This, however, merely defers the tax burden. Starting in 2028, corporate income tax is to be reduced by one percentage point each year. Such corporate tax cuts place a burden on the budget and, in the past, have increased profits and dividends but not necessarily private investment.
There is no sign of agreement on more significant steps toward fairer financing, such as a wealth tax or a reform of the inheritance tax. Individual measures do, at least, promise a bit more fairness in this regard. For example, the gap between the child allowance and child benefits is to be “narrowed,” and single parents are to benefit more from child benefits. From a distributional perspective, it is important that the solidarity surcharge be maintained. And providing greater tax benefits to union members is also a good approach.
Whether the large-scale plans to reduce bureaucracy will actually provide relief or serve as a cover for deregulation—including of workers’ rights—remains to be seen. We will take a strong stand on this when it comes to implementing these plans!
Working Hours: However, the future governing parties have also agreed on measures that IG Metall considers unacceptable, foremost among them the increase in the maximum daily working hours. As with the issue of overtime premiums, which are to be made tax-free, there are plans here as well to engage in dialogue with the social partners. IG Metall intends to—and will—make use of this leeway. The union will stand up for workers on this issue!
The challenges are enormous, and a government capable of taking action is of the utmost importance. The coalition agreement lays the groundwork for preserving good industrial jobs in Germany. The key initiatives to strengthen workers and the economy must now be implemented quickly!
