German union calls for 24-hour strike in auto, steel sectors

IG Metall Union Plans 24-hour Strike in Germany’s Auto and Steel Sectors

Overview of the IG Metall Strike Announcement

Background and Context

FRANKFURT, Nov 12 (Reuters) - Germany's powerful industrial union IG Metall announced a 24-hour strike on Thursday, ramping up pressure in a pay dispute affecting 3.7 million workers at companies including Audi, Mercedes-Benz and Tata Steel.

Union's Motivation and Demands

• The stoppage, for which IG Metall did not immediately give a date, is a response to what the union said was an obstructive stance by employers following three rounds of negotiations without progress.

• Germany's largest union is demanding a 5% wage increase, measures to safeguard jobs and production sites, and profit-sharing mechanisms in sectors performing strongly.

Employers' Counterproposal

• Employers have proposed a one-off payment of 1% in July 2027 and a 1.3% wage increase from July 2028. The proposal would also allow financially troubled companies to withhold the one-off payment.

Union's Reaction to Employers' Offer

• The union has dismissed the employers' offer as effectively a pay cut in real terms.

Reactions from Employers' Associations

• Regional employers' associations on Wednesday condemned a call by IG Metall regional branches for a 24-hour stoppage, saying longer strikes would only cause further damage to the crisis-hit sector.

Proposed Temporary Arrangements

• Last week, IG Metall proposed a temporary arrangement that would allow employees in companies under economic pressure to make concessions, provided that the companies make binding commitments regarding investment and jobs.

Reporting and Editorial Information

(Reporting by Ilona Wissenbach, writing by Linda Pasquini, editing by Thomas Seythal)