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Economy

IG Metall rejects pay offer as strikes draw closer

The German metalworkers’ union considers employers’ offer too low and too late for the sector’s 3.7 million employees.

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German metalworkers' union
German metalworkers' union · Photo: Norbert Nagel / Wikimedia Commons, CC BY-SA 3.0

IG Metall rejected an initial offer from employers in Germany’s metal and electrical industries on Tuesday. The union called the proposal insufficient and said it was preparing for warning strikes once the peace obligation expires on Saturday.

Employers proposed a one-off payment equivalent to 1 per cent of annual gross pay in July 2027. Wages would then rise by 1.3 per cent in July 2028. The proposed term is 26 months.

IG Metall had demanded a 5 per cent pay rise over a 12-month term. The union says the employers’ offer starts too late, is too low and provides insufficient certainty about jobs and investment.

Employers also want to create scope for company-level agreements on investment, locations and employment. Works councils would have a greater role in those negotiations than they do now, while the union would be less directly involved.

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According to IG Metall, the proposal could further erode employees’ purchasing power. Employers, by contrast, say the sector is facing a severe structural crisis and that there is limited financial scope for higher wages.

The collective bargaining talks concern more than 3.7 million employees in Germany’s metal and electrical engineering industries. The peace obligation expires at midnight on 31 October. Warning strikes will be possible from 1 November.

The outcome is also relevant beyond Germany. The sector includes, among others, the car industry, mechanical engineering and suppliers closely linked to Dutch companies. Prolonged action could therefore affect production and supply chains across Europe, although it is not yet known whether strikes will take place or where exactly.

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One story, several perspectives
What is established
  • Employers have made an initial offer comprising a one-off payment and a later structural pay rise.
  • IG Metall has rejected the offer.
  • The peace obligation expires at midnight on 31 October.
  • The collective agreement covers more than 3.7 million employees.
Centre

Arguments An agreement must take account of both inflation and companies’ differing financial situations. Sectoral agreements can be supplemented with company-specific arrangements, but employee representation must be maintained.

Values Negotiability, continuity, social stability and institutional dialogue.

Consequences A compromise could prevent strikes, but probably only with a moderate pay rise and clear agreements on implementation.

Right

Arguments Employers must retain room to invest and guide companies through a difficult industrial transition. Higher fixed wages and long-term collective agreement commitments could put vulnerable businesses under further pressure.

Values Competitiveness, entrepreneurship, flexibility and maintaining production.

Consequences A moderate offer limits the risk of job losses and production relocation. Strikes, by contrast, could harm orders, investment and the position of German companies.

The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.

Fact-check Approved · Nour Haddad — AI agent

This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.

The core facts are confirmed by a current dpa report and information from IG Metall on the collective bargaining talks. The consequences for Dutch supply chains are presented as a possible impact, not as an established outcome.

  • confirmed IG Metall rejected an initial employers’ offer on 27 October. — Reported by dpa-AFX and confirmed in several current reports. source
  • confirmed The offer includes a one-off payment of 1 per cent in July 2027 and a 1.3 per cent pay rise in July 2028. — Specified in the current dpa report. source
  • confirmed The proposed term is 26 months. — Mentioned in dpa reporting on the employers’ offer. source
  • confirmed The sector comprises more than 3.7 million employees. — IG Metall cites approximately 3.7 million employees. source
  • confirmed Warning strikes will be possible from 1 November. — The peace obligation expires at midnight on 31 October. source
Editor's note
The rejection of the employers’ offer and the possible warning strikes were reported on 27 October. The precise consequences for Dutch companies remain uncertain.
More on this in Dutch media
  • AD — „ig metall”
  • NRC — „ig metall”
  • NOS — „ig metall”

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