Germany: IG Metall presses for 7% pay increase

IG Metall has initiated warning strikes in Bavaria and Saxony to pressure employers in ongoing wage talks. This highlights tensions in Germany’s automotive and manufacturing sectors, affecting 3.9 million workers and potentially disrupting production.

Driving the news: IG Metall is demanding a 7% pay increase within the next year, while employers offer only 1.7% in 2025 and 1.9% in 2026.

The bottom line: With Volkswagen’s potential plant closures and layoffs, these strikes underscore the challenging economic landscape for both workers and employers in Germany.

ADDITIONAL INFORMATION:

See Tom Hayes Substack article on Volkswagen situation