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IG Metall boss Hofmann: “A great pressure of expectations”
Photo: Britta Pedersen / dpa
Despite government aid packages in the energy crisis, IG Metall does not see its demand for eight percent more wages as excessive.
According to IG Metall, the government measures have so far brought little relief for people with average incomes.
"For the majority of employees in companies and administrations, it mainly contains promises and announcements for the future, some of which are still subject to change," said the first chairman, Jörg Hofmann, of the dpa news agency.
This increases the pressure on the forthcoming wage round in the metal and electrical industry.
»Even if the politicians act quickly, it is not yet clear when gas and electricity price caps will actually come.
For average earners, the tax and duty-free 3,000 euros that the unions first have to fight for remain within reach,” said Hofmann.
»Therefore, there is a great deal of pressure of expectations on our collective bargaining.«
With a demand for eight percent more money for the nearly four million employees, Germany's most powerful trade union is starting the negotiations on September 12 in Hanover.
Warning strikes in the central sectors of German industry such as auto and mechanical engineering are possible after October 28th.
Hofmann contradicted the ideas of employers to act primarily with one-off payments in the energy crisis.
»The announced exemption from taxes and duties is in no way limited to one-off payments.
The coalition committee speaks generally of additional payments.
This includes all additional pay increases agreed under the collective agreement.
Anything else would be a deep and clearly unacceptable attempt to intervene in collective bargaining,” said the IG Metall boss.
Hofmann demanded clarifications from the federal government: “The period for which this tax exemption applies must be clarified.
We also think that this should mean increases that have been agreed in collective agreements and thus firmly agreed employee entitlements.
Where we have concluded collective agreements, we have to consider bringing the demand for an energy bonus into the discussion.«
Since 2018, the metal employees have only received an additional payment according to the collective agreement.
Table increases are therefore now urgently needed, said Hofmann.
The economic conditions are not bad: »Most of the companies in our sectors are still doing well.
Many of them are planning further price increases for their products to compensate for the increased costs.«
Employees just don't have that option.
»Regardless of the economic situation of their company, they are affected by the loss of purchasing power.
The situation of the companies may differ in parts, but the problems for the employees are the same.
The stability of purchasing power and thus of private consumption is the key challenge in avoiding a recession.«
Of course, there are also many companies that lack the market power to raise prices, Hofmann admitted.
For example, many foundries and hardening shops struggled with exploding energy costs.
Politicians need help here.
"Among other things, the conditions for short-time work must be defined more precisely and energy cost subsidies must be paid more precisely and more quickly."
The agreement allows companies to deviate from collective agreements for a limited period of time if they thereby secure jobs or create new ones.
Economists warn of rising inflation as a result of the minimum wage increase
Meanwhile, the Munich ifo Institute warned that the increase in the statutory minimum wage on October 1st could fuel the already high inflation in Germany.
30.7 percent of the 6,900 companies surveyed by the ifo Institute employ staff for less than twelve euros an hour.
58.3 percent plan to raise their prices as a reaction to the future minimum wage of twelve euros.
"That should continue to drive the already high inflation," said Ifo labor market expert Sebastian Link.
The inflation rate is currently 7.9 percent, but according to economists it could reach double digits in the coming months due to higher energy prices.
The minimum wage will increase from 10.45 to 12 euros per hour on October 1st.
Ifo experts write that 12.7 percent of the companies affected are planning to cut jobs as a result of the increase.
The vast majority – 82.7 percent – want to keep the number of employees the same.
5.1 percent would even like to increase it.
18.3 percent want to reduce the average working hours, and 17.6 percent are considering cuts in additional wage components such as special payments, bonuses and non-cash benefits.
In addition, the companies affected want to scale back their investments and further training and qualification measures (21.3 percent and 11.1 percent) rather than expand (4.7 percent and 5.0 percent).
“The vast majority of affected companies therefore do not plan to replace labor that has become more expensive with capital or to invest in the knowledge of employees in order to increase their productivity,” said Link.
Many respondents suspect that their purchase prices will increase as a result of the rising minimum wage.
Almost half (49.4 percent) expect this from the companies directly affected, and 29 percent of the companies not directly affected.
Furthermore, 52.8 percent expect shrinking profits, 32.4 percent with decreasing competitiveness and 23.3 percent with less demand.
"The extent to which companies are affected by the increase in the minimum wage varies greatly by region," write the ifo researchers.
In western Germany, 29.1 percent of the companies surveyed employ less than twelve euros an hour, but 39.9 percent in the east.
There are also differences between the sectors: 78 percent of companies in the catering sector are affected, and 65.1 percent in the accommodation sector.
In temporary work, 63.5 percent of companies currently pay below the new minimum wage.
The retail trade with 57.9 percent, the textile industry with 71.9 percent and the food and beverages industry with 61.4 percent of the companies are also affected above average.
mmq/dpa/Reuters
