IG Metall demands 5% wage increase for 3.7 million workers

The German trade union IG Metall has finalized its demands for the 2026 collective bargaining round, seeking a five percent wage increase for approximately 3.7 million employees over a twelve-month period. In addition to higher pay, the union is calling for social components, including profit-sharing in successful companies and formal commitments to job and site security.

Negotiations are scheduled to begin on October 7, with the current peace obligation set to expire at the end of October. Regional delegates have expressed strong support for these demands, emphasizing the need for income improvements following recent economic challenges.

Employers, represented by Gesamtmetall, have issued warnings regarding these demands. They argue that additional labor costs could lead to further job cuts, particularly in sectors like the automotive industry which are currently struggling with weak demand, overcapacity, and declining profitability. While industries such as aerospace, defense, and shipbuilding remain robust, employers warn that the economic strain on many companies makes significant wage hikes a risk to employment stability.