Germany: Schaeffler, its WC and IG Metall seeking together to meet the digital challenge

Formerly at ‘daggers drawn’, family run Schaeffler, its WC and the IG Metall union adopted on 16 April a ‘Pact for the future’, which IG Metall believes may become a model for the auto sector. In the agreement the parties comitt to working together to make much needed changes to the group as it faces major upheaval due to electrification and digitalisation, while still taking into account both the interests of the company and its employees. The pact also aims to involve employees in the change process thereby dissipating their worries over developments. More concretely, the agreement intends for the implementation of a steering committee, comprising equally management board members and representatives of the WC and IG Metall, who will provide strategic advice on upcoming themes. The agreement excludes any employment termination on economic grounds in principle, unless the steering committee believes there to be no other alernative. The auto parts company has also committed to extending co-determination within the the group.
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Employee involvement during change. This agreement marks a new stage in what is a better relationship between the family company and employee representatives after what had been formerly acrimonious interactions. In 2009 heavily indebted Schaeffler after the Continental (a competitor) purchase sought IG Metall assistance and in return agreed to extend co-determination within the company (c.f. article No. 090206). Nine years later and the company had just signed a pact for the future, which...

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