2024 Metal and Electrical Industry Collective Bargaining Round “We want more money because we need it”

On June 21, the elected bargaining committees will decide on IG Metall’s demands for the collective bargaining negotiations in the metal and electrical industries, which are set to begin in mid-September. Discussions among IG Metall members and shop stewards at the companies have been ongoing for weeks. In addition, IG Metall surveyed employees at the companies—and 318,000 employees from 2,700 companies responded.

Need More Money – More Purchasing Power

Above all, workers in the metal and electrical industries expect a noticeable pay raise. 72 percent of the workers surveyed say they need higher wages to offset inflation and strengthen their purchasing power.
“Inflation may be slowing, but prices remain high,” explains Christiane Benner, President of IG Metall. “Workers expect employers to provide a noticeable and lasting increase in pay to counter price pressures.”

In fact, strengthening purchasing power would also make economic sense: Private demand accounts for about half of the gross domestic product (GDP) and is thus even more important than exports. However, inflation is eroding purchasing power and, with it, private consumption. Private consumption must be stimulated so that the economy can grow again.
 

Economic Situation: Poor Overall—Good at the Workplace

Employees view the economic situation in a nuanced way: 41 percent perceive the overall situation in Germany as bad or very bad. By contrast, 80 percent of employees consider the economic situation at their own workplace to be okay, and 44 percent even consider it good or very good.

“Overall, employees view the economic situation at their workplaces much more positively than the current complaints from employers’ associations would suggest,” emphasizes Nadine Boguslawski, who is responsible for collective bargaining policy on the IG Metall executive board. “There is something to be shared.”

Apprentices and students are particularly hard hit by rising prices

Apprenticesand dual-trackstudents are particularly burdened by price increases. Sixty-eight percent of the employees surveyed share this view. Among apprentices and dual-track students themselves, 93 percent say they need more money because of the increased costs.

Currently, apprentices in the metal and electrical industries earn an average of 1,167.50 euros per month under collective bargaining agreements. That money simply isn’t enough anymore. The rising cost of living is placing a particular burden on low-wage earners, such as apprentices and dual-track students.

And the days when apprentices were still minors are long gone. Today, the average age of apprentices is over 20. About a quarter are even 22 or older. They often want more independence from their parents, their own apartment—or an apprenticeship or dual study program at a specific company that may be farther away. At the same time, employers are demanding ever-greater flexibility and mobility.

Apprenticeship wages must increase significantly

More and more young people are no longer pursuing vocational training at all, preferring instead to take on part-time jobs after school. With a “midi-job” (up to 2,000 euros gross), they can earn almost twice as much. The result: 2.64 million young people between the ages of 20 and 34 have no vocational qualification. At the same time, the German economy is increasingly complaining about a shortage of skilled workers.

To make vocational training and dual study programs more attractive again and enable young people to lead independent lives, IG Metall believes that apprenticeship wages must therefore increase significantly.

More Control Over Their Own Time

The 318,000 employees surveyed also view their working hours as an important issue. Here, they are calling for practical solutions that offer them greater flexibility. For 85 percent of those surveyed, greater autonomy and self-determination regarding working hours are very important or important. 

More than half of those surveyed would like more individual options to choose between time and money, as is already made possible by the“Collective Bargaining Supplement”(T-ZUG) in the metal industry for employees facing particular burdens (such as caring for children or family members, or working shifts).