# German industrial competitiveness and labor unrest

> Live situation record from CLSTR: https://clstr.news/situations/german-industrial-competitiveness-and-reform-pressures
> Updated: 2026-09-20T12:10:28.000Z. Sources: 42. Developments: 2.

German industrial leaders continue to call for urgent economic and structural reforms to address declining competitiveness. Willi Seiger, President of the Bundesverband Metall, has urged the government to combat high energy prices, excessive bureaucracy, and record insolvency rates, noting that political uncertainty has hindered progress.

Labor tensions have escalated significantly within the automotive sector. The IG Metall union has launched nationwide protests across more than 280 locations, with an expected turnout of over 100,000 participants. Union chief Christiane Benner characterized the situation as an ‘unprecedented attack on employees,’ demanding increased domestic investment in battery production and autonomous driving to counter job cuts and potential production shifts abroad. The union is also demonstrating against threats to the 35-hour work week and has demanded that companies prioritize long-term investments over shareholder payouts.

In response, VDA President Hildegard Müller has criticized the union’s position, accusing them of ‘denying reality.’ Müller maintains that the current status quo is unsustainable, citing massive disparities in labor costs—noting German rates of approximately 65 euros per hour compared to 24 euros in Czechia and 18 euros in Poland. She also highlighted that German workers average approximately 1,300 hours per year, a figure significantly lower than in countries like Mexico. Peter Sebastian Krause, Chairman of Südwestmetall, added that longer working hours should not be a ‘taboo’ if necessary to stabilize production sites. An EY study further underscores these challenges, noting declining revenues and margins for major players including Volkswagen, BMW, and Mercedes-Benz. Volkswagen, specifically, has issued profit warnings that have heightened anxiety regarding future job cuts and structural changes.

## Claims

- The union is organizing more than 280 protest actions across more than 200 locations. (corroborated by 12 sources)
- The union demands that the 35-hour work week be protected. (corroborated by 12 sources)
- The union expects more than 100,000 people to participate in the protests. (corroborated by 12 sources)
- The union demands increased investment in battery production and autonomous driving in Germany. (corroborated by 12 sources)
- IG Metall describes the current situation as an unprecedented attack on automotive industry employees. (corroborated by 11 sources)
- VDA President Hildegard Müller stated that those who refuse necessary changes are ‘denying reality’. (corroborated by 4 sources)
- An hour of work in the German automotive industry costs nearly 65 euros. (corroborated by 3 sources)
- Südwestmetall Chairman Peter Sebastian Krause stated that longer working hours should not be a taboo to stabilize production sites. (corroborated by 3 sources)
- An EY study reports that major manufacturers like Volkswagen, BMW, and Mercedes are seeing declining revenues and margins. (corroborated by 2 sources)

## Timeline

### 2026-09-20: IG Metall launches nationwide protests in German auto industry

IG Metall has launched nationwide protests in Germany, with over 100,000 workers expected to participate to defend jobs and the 35-hour work week amid a deepening crisis in the automotive industry.

40 sources. https://clstr.news/cluster/vda-president-mller-urges-reform-in-german-auto-industry

### 2026-09-15: Bundesverband Metall urges German government to implement promised reforms

Bundesverband Metall President Willi Seiger urges the German government to implement promised reforms to combat high energy costs, bureaucracy, and economic stagnation in the metalworking sector.

2 sources. https://clstr.news/cluster/bundesverband-metall-urges-german-government-to-implement-promised-reforms

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Cite as: German industrial competitiveness and labor unrest. CLSTR, https://clstr.news/situations/german-industrial-competitiveness-and-reform-pressures