IG Metall seeks 5% pay rise for 3.7 million German engineering workers

Germany's largest industrial union, IG Metall, has called for a 5% wage increase for 3.7 million employees in the engineering sector, setting the stage for collective bargaining talks that begin on October 7. Industrial action could follow from November 1 if no agreement is reached.

The demand covers workers across Germany's metal and electronics industry, a broad segment that includes the country's flagship automakers and their suppliers. Union president Christiane Benner framed the approach as one of "combative realism," stating that concessions would not resolve the sector's difficulties. She called for secure employment and profit-sharing arrangements rather than what she described as crisis rhetoric, adding that the union would not accept attempts to diminish the standing of workers or the country's industrial base.

The negotiations unfold against a difficult backdrop for German industry, where tens of thousands of jobs have been shed. Automobile production has been especially strained by competition from China, steep tariffs and elevated production costs. Major carmakers, including Volkswagen and Mercedes-Benz, have said manufacturing in Germany has become too expensive and have raised the possibility of closing some plants.

The talks will test how far employers are willing to go on pay at a time when the sector is under pressure to cut costs, while the union is seeking to protect jobs and secure a share of profits for its members.