Warning strikes: Metal collective bargaining round is entering the hot phase

Seven percent more money – IG Metall’s demand for the approximately 3.9 million employees in the metal and electrical industry is simpler than ever this year. The collective agreement has been terminated, the subsequent peace obligation of four weeks ends this Monday (October 28th). From Tuesday, IG Metall will call on its members nationwide to carry out their first warning strikes in many companies.

The negotiations are about the working conditions of around 3.9 million employees in several key sectors of German industry. Mechanical engineering, electrical engineering and large parts of the automotive industry are brought together in the regional collective agreements for the metal and electrical industries.

What does IG Metall demand?

The positions are still far apart, which is not unusual after two rounds of negotiations. Over a period of twelve months, IG Metall is demanding 7 percent more money for employees and a disproportionate 170 euros more per month for trainees. She also wants to give more employees the opportunity to choose between free time and pay. The union justifies this third-highest demand of the past 30 years with the loss of purchasing power that its members have suffered in the past years of high inflation.

What do employers offer?

The employers have submitted an initial offer across the board, which, with a term of more than twice as long of 27 months, amounts to an increase of 3.6 percent in two stages. The first stage of 1.7 percent should not take effect until July 2025. Total metal refers to the poor economic situation of companies, which also suffered from numerous locational disadvantages. The companies’ production is so far 7.4 percent below the previous year and 15 percentage points behind the pre-crisis level of 2018. There is no sign of a trend reversal either this year or the current year. The companies should therefore not be burdened any further.

What role do the parallel negotiations play at Volkswagen?

Ironically, the largest German car manufacturer, with at least six West German plants and 120,000 employees, is not covered by the collective bargaining agreement, but has its own in-house collective bargaining agreement with IG Metall. The VW crisis, in which management has no longer wanted to rule out layoffs and factory closures since September, only has an indirect effect on the collective bargaining agreement, but also shows the dangers of de-industrialization and job losses.

Under pressure from the union, the VW collective bargaining negotiations were brought forward by a few weeks, but are closely linked to strategic decisions about the future capacity utilization of the plants. Warning strikes are only possible at VW from December 1st. As in the area, the union is demanding 7 percent more money and the reversal of the closure plans.

When will there be warning strikes in the area?

IG Metall has announced that the first nationwide wave of warning strikes will begin with the end of the peace obligation on October 29th. This is definitely meant directly, because in collective bargaining in the past, the first employees “dropped the hammer” at 12:01 a.m. on their night shifts.

What effects do the warning strikes have?

The work stoppages initially disrupt production in the companies on strike. Working hours during a warning strike are not paid. Unlike, for example, transport strikes with canceled train journeys or flights, production can be made up later. The M+E products are also often delivered to other industrial companies. It is therefore initially very unlikely that end customers will feel any major disadvantages.

How is a solution finally found?

Despite the warning strikes, negotiations are continuing in parallel in eleven regions. The tariff areas of the coast and Lower Saxony will begin the third round of negotiations this Tuesday (October 29th). The remaining areas will follow until November 5th. The discussions will look at where rapprochement seems possible. If a pilot district emerges, negotiations will be completed there on behalf of the district. The central units can also get involved, i.e. the Gesamtmetall umbrella association in Berlin and the board of IG Metall in Frankfurt. If there is a result, this will be rolled out to the other tariff areas in the following days.

Total Metal President Stefan Wolf warned in an interview with the news portal “t-online” that it would not help at all to further fuel expectations. “The situation is what it is.” Warning strikes didn’t make reaching an agreement any easier.

How is the pilot district selected?

This is an informal process between the union and employers, which also depends on the ambition of the regional negotiators. Both sides must also ensure that their respective negotiators have sufficient support in the other regions. For this reason alone, the recent deals come exclusively from the IGM districts with large numbers of members: Baden-Württemberg, North Rhine-Westphalia and Bavaria. In 1997, Lower Saxony was the last time one of the smaller units took part. “The Pilot” is particularly often forged in Baden-Württemberg, most recently in Ludwigsburg in 2022. A solution was found in the fifth round, a length that has been quite common over the years.

How likely are regular strikes?

At this point, regular strikes are very unlikely, also because of the offer presented early in the second round. The last regular strike with a prior strike vote dates back to 2002, when, according to employers’ counts, 166 companies in Baden-Württemberg and Berlin-Brandenburg went on strike. Although IG Metall always emphasizes its full strike fund, it rarely takes this final step. In the 2022 collective bargaining round, the negotiator at the time, Roman Zitzelsberger, said he threatened a strike vote and a strike.

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