Germany: IG Metall changes negotiation strategy to better address structural challenges faced by manufacturing sector

With structural upheaval already underway, particularly in the automotive industry, the German metals sector union IG Metall said on 24 January that it is prepared not to set any numerical salary demands ahead of upcoming collective negotiations in the metals and electrical engineering sectors, due to kick off in mid-March. Instead the union intends to negotiate with employers, to agree as quickly as possible measures that will maintain jobs and retrain thousands of workers. To this end, the union has proposed that employers sign a so-called ‘moratorium for equitable change’, which would involve companies agreeing not to enact unilateral moves to dismiss workers, close sites or relocate operations. In return, the union would be prepared to commence discussions immediately and negotiate a ‘package for the future’, before the social peace clause expires at the end of April. If employers do not accept this offer by 3 February, the date on which IG Metall’s management next meets, collective bargaining will occur according to the usual procedure, with the potential for warning strikes.
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Surprise announcement. During his annual press conference, held on 24 January in Frankfurt, IG Metall president Jörg Hofmann sprung a surprise when he did not establish a numerical wage demand for the upcoming collective negotiations, which has become somewhat of a ritual ahead of such talks. Ahead of the last round of negotiations, two years ago, the union demanded a 6% salary increase. The only exception to this tradition was in 2010, in the middle of the financial crisis, when it opted for p

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