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German industrial competitiveness and labor unrest

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2026-09-21 08:56 UTC → 2026-09-21 11:07 UTC · added ~~removed~~

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 ~~200~~ 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. ~~She emphasized~~ Peter Sebastian Krause, Chairman of Südwestmetall, added that ~~maintaining production in Germany is ‘not~~ longer working hours should not be a ~~law of nature’ and has called for greater flexibility~~ ‘taboo’ if necessary to ~~combat international competition and declining margins.~~ stabilize production sites. An EY study further underscores these challenges, noting declining revenues and margins for major players including Volkswagen, BMW, and Mercedes-Benz. ~~Recent developments show the scale of unrest expanding, with IG Metall organizing more than 280 protests and demonstrations in cities such as Wolfsburg, Stuttgart, and Munich.~~

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