German union demands 5% raise for workers in strained engineering industry

IG Metall Calls for 5% Salary Increase for 3.7 Million Engineering Workers in Germany

Union Demands and Industry Context

By Rachel More

IG Metall's Salary Increase Demand

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 industry ahead of collective bargaining talks overshadowed by immense pressure on the German auto sector.

Union's Stance on Worker Rights

"Of course, we see that some companies are under considerable pressure and that this will continue. But as IG Metall, we do not accept deterioration in wages and employment rights," IG Metall President Christiane Benner said on Wednesday.

"We need a vision that goes beyond job cuts, relocations, and plant closures," Benner added.

Challenges Facing the German Engineering Sector

Backdrop of Negotiations

Negotiations are taking place against a tense backdrop. Mass layoffs are under way in German industry, most notably in the nation's auto sector, which is straining under Chinese competition, steep tariffs and high production costs.

Timeline for 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.

Employers' Response and Industry Impact

Employers Association's Criticism

The employers association has already criticised the union's demand, arguing that jobs in Germany can only be secured with lower labour costs.

Carmakers' Concerns

Threats of Plant Closures

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, Ludwig Burger, Alexandra Hudson)