German Metalworkers' Union Vows No Pay Freeze as 270,000 Jobs Vanish Since 2018
Published on 07/28/2026 at 12:11 | Redaktion boerse-global.de
The IG Metall union has drawn a hard line ahead of October 2026 wage negotiations, ruling out any zero-increase deal for Germany's metal and electrical sectors. Despite mounting economic pressure in core industries like automotive manufacturing, the union is demanding real wage growth and calling on the federal government to introduce industrial policy measures that would cushion the ongoing structural transformation.
Christiane Benner, chairwoman of IG Metall, outlined a series of protective steps she says are needed to shield domestic industry from intensifying competition. Speaking to the Handelsblatt, she specifically called for tariffs on hybrid vehicles imported from China, pointing to a dramatic surge in market share — Chinese hybrid models jumped from 3 percent in 2024 to 18 percent most recently.
Beyond tariffs, Benner proposed local-content rules that would mandate a minimum share of domestic value creation, alongside a so-called "Battery Booster" program aimed at strengthening Germany's own battery production capacity. The urgency of these measures is underscored by employment data: since 2018, the metal and electrical industries have shed roughly 270,000 jobs. Benner pushed back against the notion that the booming defense sector could fill the gap, estimating it might absorb no more than 10 percent of the lost industrial positions.
A recent agreement at Porsche offers a glimpse into the kind of trade-offs the union is currently willing to accept. IG Metall approved the elimination of 5,000 positions by 2035. In return, workers agreed to forgo wage increases worth 3.5 percent. The deal also grants the union membership bonuses and the right to fill new posts.
Yet the situation varies sharply across the sector. Horst Ott, IG Metall's regional chief in Bavaria, described a precarious workload at Mercedes, where there is currently not enough work to fill a 35-hour week. That reality has fueled union fears that employers will use the downturn to challenge the 35-hour workweek, a landmark won back in 1984.
The industry's mood has darkened further following the insolvency of battery manufacturer Varta. IG Metall said it was deeply shaken by the financial collapse of the traditional company and is currently reviewing every available option to preserve sites and jobs.
On the legal front, the union secured a partial victory. Brandenburg's General Prosecutor's Office rejected a complaint filed by US automaker Tesla against the closure of a probe targeting an IG Metall secretary.
Meanwhile, internal tensions have surfaced at automotive supplier ZF. The Christian Metalworkers' Union (CGM) has filed a motion to remove Achim Dietrich, chairman of ZF's group works council, accusing him of violating the neutrality obligation. These internal disputes, layered on top of the broader economic headwinds, set the stage for a bargaining round in which IG Metall insists it will not accept any real-terms wage losses.
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