German metal and electrical industries face potential job cuts

The German metal and electrical (M+E) industry is facing a difficult economic outlook ahead of upcoming collective bargaining negotiations. According to a survey of 1,461 companies representing approximately 800,000 employees, 39 percent of businesses rate their current business situation as poor, while 21 percent expect conditions to worsen within the next six months.

Due to these economic pressures, 42 percent of the surveyed companies anticipate reducing their workforce. While certain sectors like defense and medical technology are experiencing growth, Gesamtmetall Managing Director Oliver Zander noted that these gains do not benefit the broader industry, which employs 3.7 million people.

Negotiations between employers and the IG Metall union are ongoing following an inconclusive first round of regional talks. IG Metall is seeking a five percent wage increase for the sector's workers. The current peace obligation is set to expire on October 31, after which warning strikes may become possible.