Germany's largest union urges joint action to avert industrial crisis

Germany’s largest trade union, IG Metall, says industry must work closely with politicians and employees to overcome what it describes as a profound crisis facing the country’s industrial base.

Pointing to US tariffs, China’s technological race to catch-up and high energy prices resulting from the war in Ukraine, union head Christiane Benner recently warned: “These are already extreme challenges for the German economy. The export model is in danger.”

Benner called for targeted European investment in digitalization and future technologies such as battery production.

She also welcomed moves to soften the planned phase-out of combustion engines by 2035, saying this would give key industries more room to develop better solutions and safeguard industrial core sectors.

“There is a great deal at stake,” Benner said. “Without industry, Germany is a poor country. And if prosperity disappears, we jeopardize our democracy.”

Combustion-engine phase-out needs time

Despite recent decisions in Brussels, the automotive industry’s long-term direction remains electric, Benner stressed.

However, IG Metall supports greater flexibility in drive systems, noting that the use of green steel and renewable fuels could also deliver climate benefits.

“This would buy us time, especially in the supplier sector,” Benner said. “We need that time to retrain workers and manage the transformation in a socially responsible way. There are no more excuses for companies now. Job security must be the top priority.”

The union leader warned against losing skilled workers to early retirement or unemployment.

Instead, employees should be retrained for sectors experiencing growth and labour shortages, including aircraft manufacturing, medical technology and the energy transition. “I’m not only thinking of defence,” she added.