Germany Heads for Engineering Pay Showdown Due to Energy Crisis
- Employers refuse raises, see companies’ survival at stake
- IG Metall labor union says companies are doing well overall
A workshop in Magstadt, Germany.
Photographer: Krisztian Bocsi/Bloomberg
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Employers and worker representatives in Germany’s key engineering sector are headed for a pay dispute as soaring energy prices push up production costs and consumers suffer from rampant inflation.
Germany’s powerful IG Metall union is seeking a wage increase of 8% for 3.8 million workers in the metals and electrical engineering sector, which covers companies such as Siemens AG and Volkswagen AG. Stefan Wolf, the head of the Gesamtmetall employers’ association, said workers should get no raises.