Berlin. Thousands of German workers began strikes across the country on Tuesday to demand better wages, compounding the problems of companies worried about maintaining their global competitiveness as high costs, weak exports and foreign rivals eat into their points. strong.
Strikes by unionized workers in the metallurgical and electrical engineering industries, which have almost 4 million employees, affected companies such as Porsche AG, BMW and Mercedes.
Also this week, auto giant Volkswagen could announce the closure of three plants in its country for the first time in its 87-year history, as well as massive layoffs and 10% pay cuts for workers who keep their jobs.
Worsening business prospects in Europe’s largest economy have increased pressure on Chancellor Olaf Scholz’s troubled coalition government, which could be on the brink of collapse ahead of next year’s federal election as political rifts widen. .
Scholz will hold a meeting on Tuesday with business leaders, including Volkswagen boss Oliver Blume, but his team has already downplayed expectations of quick results. In a sign of the dysfunction that the Executive is experiencing, its Finance Minister also announced a separate summit for the same day.
Germany has a long history of “warning strikes” during wage negotiations, but they come at a time when employers are increasingly worried about the future. A major business group said a survey of businesses suggests Germany will experience another year of economic contraction in 2024 and there will be no prospects for growth next year.
“We are not just facing a cyclical crisis, but a persistent structural crisis in Germany,” said Martin Wansleben, managing director of the German Chamber of Commerce and Industry (DIHK), which conducted the survey.
“We are extremely concerned about the extent to which Germany is becoming an economic burden for Europe and can no longer fulfill its role as an economic workhorse,” he said, calling for “deep reforms.”
Another survey by the VDA automobile association suggests that the transformation of this industry in Germany could lead to the loss of 186,000 jobs by 2035, of which approximately a quarter have already been created.
“It is increasingly clear that there is no room for interpretation: Europe – especially Germany – is increasingly losing international competitiveness,” the VDA report said.
“The price of electricity for German companies is up to three times higher than that of their international competitors, for example from the United States or China. Germany is a country with the highest taxes and bureaucratic burdens continue to increase,” he noted.
The government gained some respite with another survey, this time from the Ifo institute, which revealed last week that business morale improved more than expected in October.
Tuesday’s strikes were orchestrated by the powerful IG Metall union, which also organized a walkout during the night shift at the Volkswagen plant in the town of Osnabrueck, where workers fear the plant will close.
IG Metall demands a salary increase of 7%, compared to the 3.6% increase in a period of 27 months offered by employers’ associations. Companies say the lawsuits are unrealistic
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