IG Metall union chief wants a European independent industrial policy

IG Metall union leader Christiane Benner has called for a determined industrial policy at a European level to combat competition from China and the United States.

"Europe and its industry need to become more independent from China and the USA," the chairwoman of Germany's largest single trade union told dpa. Given Chinese state capitalism and the plans of the President-elect Donald Trump, believing that there is a free market is naive, she said.

Benner stated that the European countries must agree on industrial projects in a binding manner and also attract external investments. The focus should be on digitalization, low energy costs, and relieving companies from bureaucratic burdens, while adhering to climate goals, she said. Funding should be made dependent on the highest possible value creation within the European Union.

Wanted: Stable government with two coalition partners

With regards to the expected parliament or Bundestag elections in February, Benner would like a stable federal government, ideally consisting of only two coalition partners, as she believes the necessary steps could then be implemented more easily. The trade unionist noted that in the last months of the centre-left coalition of the Social Democrats, the Greens, and the Free Democrats "politics no longer worked properly," and opportunities were missed.

As for domestic German policies, Benner focused on the need for cheaper energy - both for companies and consumers. There is a threat of de-industrialization if businesses cannot access affordable energy, she said. Consumers also need cheaper energy to advance electromobility, plus the charging infrastructure needs to be expanded more quickly.

Management mistakes behind auto industry woes

When it comes to Germany's troubled auto sector, Benner pointed to numerous management errors, such as failed digitalization and the lack of development of cost-effective electric models. IG Metall had called many years ago for the electric car not to forego battery production with its high value creation.

The union just concluded bitter negotiations with Volkswagen. The agreement averts mass involuntary lay-offs and plant closures but allows VW to still eliminate more than 35,000 jobs by 2030 in a "socially responsible" manner to regain its competitive edge.

Not everything is lost yet, Benner said, because Germany and Europe can build on a multitude of advantages. These include well-educated people, strong and innovative medium-sized businesses, and co-determination. From Benner's perspective, the next two years are crucial: "Nothing will improve by itself!"

IG Metall has achieved a timely wage negotiation agreement for the metal and electrical industry, she noted. Particularly pleasing were extra provisions for apprentices. Now it is up to the companies to secure jobs and invest in Germany. "We now expect firm commitments to the location."

Dismisses worries about union membership growth

Benner expressed no worries about its union membership or the labour group's path, even though there are few new hires in companies where IG Metall represents labour. She maintained that there is a good influx of young members.

"We have a plan, and we are capable of conflict. In the companies, we also have effective and highly competent works councils." Germany's largest trade union will report on the exact development of membership numbers at its annual press conference on January 27.