Germany's metalworking and automotive sectors are going through a difficult time, with a series of major developments occuring concurrently. We learned on Monday that the management at Volkwagen is planning to close at least three sites, outsource departments, axe jobs and make substantial pay cuts. For their part, employees in the metalworking sector began the first warning strikes of the collective bargaining round overnight, after the employers' offers were deemed insufficient.
Collective bargaining in the metalworking industry and matters at Volkswagen overlap. In the first case, the second meeting of the social partners failed to produce any results. IG Metall is demanding a 7% year-on-year pay rise. The Gesamtmetall federation, sitting on the employers’ side of the table, is offering a 3.6% increase over 27 months and in two stages (1.7% in July 2025 and 1.9% a year later).
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Article authors
Thomas Schnee
Correspondent in Germany
As a Berlin correspondent for the French and Swiss press since the late 1990s, I cover a wide range of economic, political and social issues, with a particular focus on the German business and labour market. My areas of interest include co-determination, digitalisation, demographics and ESG/DEI policies.