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Finance

German trade union IG Metall demands 5% pay rise ahead of wage talks

Published by Global Banking & Finance Review

Posted on September 23, 2026

2 min read

· Last updated: September 23, 2026

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IG Metall Calls for 5% Wage Increase Ahead of Critical German Engineering Talks

Main Developments in Wage Negotiations

By Rachel More

Union Demands and Rationale

BERLIN, Sept 23 (Reuters) - Germany's top industrial union, IG Metall, is demanding a 5% pay rise for 3.7 million workers in the engineering sector ahead of collective bargaining talks marked by immense pressure on the German auto sector.

Leadership Statements

"We're entering the negotiations with a combative sense of realism," IG Metall president Christiane Benner said on Wednesday.

"Making concessions gets us nowhere," Benner added, calling for secure employment and profit-sharing instead of crisis rhetoric. "We will not allow the workers and location to be talked down."

Negotiation Timeline and Industry Context

Upcoming Talks and Potential Strikes

The talks, which cover a range of sectors across Germany's metal and electronics industry, are scheduled to begin on October 7, with strikes possible from November 1.

Economic Pressures

Job Losses and Competition

Negotiations are taking place against a tense backdrop with tens of thousands of job losses in German industry, with auto production under particular strain from Chinese competition, steep tariffs and high production costs.

Automaker Responses

Carmakers like Volkswagen and Mercedes-Benz have said auto production in Germany is too expensive and threatened the closure of some plants.

(Reporting by Rachel More, editing by Kirsti Knolle and Ludwig Burger)

Key Takeaways

  • IG Metall demands a 5% pay increase for 12 months, covering wages and apprentice pay in several regions, including Germany’s engineering sector.
  • The union emphasises secure employment, profit-sharing, and protecting lower pay grades—rejecting austerity rhetoric despite economic disparities across industries.
  • Collective bargaining kicks off October 7, with current contracts ending October 31 and warning strikes possible from November 1 if negotiations stall.

Frequently Asked Questions

What pay rise is IG Metall demanding for German engineering workers?
IG Metall is demanding a 5% pay rise for 3.7 million workers in Germany's engineering sector.
When do the collective bargaining talks between IG Metall and employers begin?
The wage negotiations are scheduled to start on October 7.
Why is there increased pressure on the German auto sector?
The auto sector is under strain from Chinese competition, high production costs, steep tariffs, and threats of plant closures.
What actions may IG Metall take if negotiations stall?
Strikes could begin from November 1 if a resolution is not reached.
What are some concerns raised by IG Metall beyond wage increases?
IG Metall is also calling for job security, profit-sharing, and protections against negative rhetoric about workers and factory locations.

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