German steel industry faces job cuts as wage talks loom

Germany's steel sector is confronting a structural downturn. Production, still far below pre‑pandemic levels, is strained by high energy costs and climate‑related regulations. Plans to shift to hydrogen‑based green steel are under way, but the industry is expected to shrink, with the Duisburg‑Niederrhein region projected to lose about 10,000 steel jobs and up to 40,000 related industrial positions. Of the 14 blast furnaces in the country, five are currently being converted to greener processes.

At the same time, the metal and electrical industries will begin a new collective‑bargaining round in September. IG Metall will consult employees ahead of regional tariff commissions, which are set to decide on wage increases and job‑security measures by 22 September. The negotiations occur amid improving order books but lingering economic pressures, including the fallout from the Iran conflict. Employers and unions are emphasizing differentiated tariff solutions and flexible work‑time arrangements to safeguard employment while seeking sustainable wage growth.