IG Metall Demands 5 Percent Pay Raise for Industrial Workers

The industrial union IG Metall is demanding a 5 percent pay increase for its more than two million members across the electronics, shipbuilding, and automotive sectors. Union chief Christiane Benner stated the raise is necessary to offset inflation since 2024, asserting that "workers deserve better than that." Benner rejected employer warnings about a general industrial crisis and stated, "We cannot accept threats of relocating plants."

These demands arrive as German industry faces significant pressure from high energy costs, tariffs from the United States, and competition from China. The automotive sector is under particular strain; Volkswagen is cutting 100,000 jobs by 2030, and Mercedes-Benz has warned that two plants could close to reduce costs.

While employers have expressed concern over the viability of the industry, some leadership figures are seeking a middle ground. Markus Forschner, the finance chief at Bosch, indicated an expectation for compromise, noting that the company is counting on partners to make forward-looking decisions during the upcoming negotiations.