Why is IG Metall making this proposal?
Because time is of the essence. Thousands of jobs and many locations are at risk if we do not advocate for social change now. The metal and electrical industry finds itself in a unique situation: The transformation—that is, changes in products and production driven by digitalization, e-mobility, CO2 reduction, climate legislation, and the energy transition—is leading to major changes in most companies. Despite the urgent need, however, many companies still lack a plan for how to secure jobs and make them future-proof. Unfortunately, some companies, manufacturers, and suppliers are exploiting the current situation to cut jobs. In the automotive industry, for example, nearly 50 percent of companies plan to reduce their workforce by more than five percent over the next two to three years. Under the guise of necessary changes, they are resorting to cost-cutting measures: plant closures and job cuts. In addition, the metal and electrical industries have suffered from an economic downturn in recent months.
What is IG Metall advocating for?
IG Metall aims to achieve #fairtransition in this round of collective bargaining. IG Metall advocates for a promising future for all workers and facilities in the metal and electrical industries. The restructuring must be designed so that no one is laid off. We need new opportunities, new jobs, and a socially responsible restructuring. We must stand up for this now. It is urgently necessary to develop a transformation plan in all companies and to begin the necessary restructuring, investments, and training of the workforce for the jobs of tomorrow.
What does “moratorium for a fair transition” mean?
A moratorium refers to a period during which an existing situation is suspended to allow for negotiations without unilateral actions or mutual “threats.” The“moratorium for a fair transition”proposed by IG Metall calls for employers to commit to halting all measures related to workforce reductions, outsourcing, the relocation of products, and the closure of facilities within their companies. This is an important prerequisite because IG Metall will not negotiate under conditions of industrial peace (duty to maintain industrial peace) unless employers also stop unilaterally creating facts on the ground. That is why IG Metall is proposing the moratorium. It includes a condition that employers must fulfill and a commitment that IG Metall makes in return:
- Employers agree not to take any unilateral measures regarding workforce reductions, outsourcing, the relocation of products, or the closure of facilities.
- In return, IG Metall declares its willingness to immediately enter into collective bargaining negotiations on a “Future Package” in all regions. The goal is to reach agreements on the “Future Package” and on compensation before the end of the peace obligation period.
Why is IG Metall offering employers early negotiations on a “future package”?
It is an attempt to buy time to find solutions that benefit employees and secure jobs and facilities. We find ourselves in an exceptional situation that calls for swift and effective solutions. IG Metall believes we do not have time to wait until mid-year—which is how long a “normal” collective bargaining round might take. Work must begin as soon as possible at the companies to shape the upcoming decisions in favor of the workforces.
What is IG Metall demanding from employers in the metal and electrical industries?
IG Metall wants to conduct negotiations on a “future package” in all regions, i.e., collective bargaining areas. The aim is to strengthen employees’ purchasing power and introduce a sustainability bonus for members. A parity adjustment for eastern Germany and collective bargaining provisions for dual-track students are also being discussed as demands. IG Metall will now discuss these and other negotiation goals, as well as the desired scope of negotiations, within the companies and collective bargaining committees, and will bring the results to the negotiating table.
What exactly is to be addressed in the regional “future packages”?
The goal is fair transformation and securing good jobs through investments, training, and commitments to the location and employment. Employers are to commit, in these “future packages,” to conducting negotiations on company-level future collective bargaining agreements at the request of IG Metall. Such future collective bargaining agreements are then to set out concrete investment and product outlooks, agreements on personnel development measures and corresponding training and continuing education measures, as well as agreements to exclude layoffs for operational reasons.
And what provisions should be included in sector-wide collective bargaining agreements?
For companies where certain employee groups are underutilized, IG Metall aims primarily to secure a reduction in the workload without a reduction in pay. This could be achieved, for example, through the use of working time accounts, short-time work with top-up pay, and reduced working hours with partial wage compensation. There should also be a right to subsidized training for all employees. Another goal is to increase the proportion of employees who can retire early through partial retirement and other flexible transition models.
What is the prerequisite for the early negotiations?
A prerequisite for the early negotiations on the “Future Package” is that employers declare by February 3 whether they will agree to the moratorium: Employers will refrain from layoffs, closures, and relocations. For its part, IG Metall will not make a specific wage demand, although employees’ purchasing power must be strengthened through pay scale increases that raise real incomes.
Does IG Metall no longer intend to demand more money?
Yes, IG Metall wants to secure a pay increase for workers and is once again demanding in these collective bargaining negotiations that incomes rise to strengthen purchasing power. After all, private demand is the biggest driver of growth in the current economic situation. However, if employers agree to the moratorium, IG Metall will not make a specific pay demand.
What is the sustainability bonus all about?
IG Metall members are to receive additional payments in the future to help cover the extra costs of eco-friendly mobility and energy—a sustainability bonus, for example, in the form of subsidies for local public transit tickets, for charging electric vehicles, for leasing e-bikes, or as a subsidy for green electricity contracts based on renewable energy.
What other demands are under discussion?
There is broad agreement among IG Metall’s bargaining committees on the need to secure collective bargaining provisions for dual-track students similar to those for apprentices. Another topic under discussion is employer-sponsored retirement plans. A minimum demand here is that the social security contributions saved by the employer through deferred compensation should benefit the employees. Finally, in the eastern collective bargaining regions, there is discussion of a demand to align collectively bargained working hours with those in the west.
How exactly will the collective bargaining process proceed from here?
IG Metall is now holding detailed discussions in the workplaces and collective bargaining committees regarding the negotiation goals and their specific terms. At its meeting on February 3 and 4, the IG Metall Executive Board will issue a recommendation on the demands based on the discussions in the workplaces and collective bargaining committees. Employers have until then to inform IG Metall whether they will agree to the moratorium offered by IG Metall. If so, IG Metall is ready to begin negotiations on the “Future Package” immediately.
What happens if the employers do not agree to the moratorium?
If the employers do not agree to the moratorium, the collective bargaining process will proceed as usual. Negotiations will then begin as planned in March. Starting April 28, IG Metall could also launch warning strikes. All IG Metall districts are developing industrial action plans in preparation for this scenario.
What must policymakers do?
The collective bargaining partners rely on political support to successfully implement the “Future Package.” Together, they are calling on the federal government and the Bundestag to:
- Easier access to short-time work, exemption from social security contributions—for example, when employees receive training during short-time work—as well as an extension of the benefit period to 24 months.
- Regarding the transfer short-time work allowance, the current restriction limiting eligibility to older, unskilled, and semi-skilled workers is to be removed, and the benefit period is also to be extended to 24 months.
- Bureaucratic barriers are to be removed under the Qualification Opportunities Act. In particular, it should also be possible to submit applications for funding for continuing education on behalf of entire groups of employees. Until now, the law has been tailored to individual employees.
