State intervention sought by IG Metall in ZF case
In a bid to secure jobs and strengthen companies in Baden-Württemberg, the IG Metall union has proposed measures aimed at supporting and preserving the mechanical engineering and automotive industries. These proposals come as the union expresses concern over the critical state of these sectors, particularly in the face of economic challenges and the transition to more climate-friendly and digital technologies.
Barbara Resch, the head of IG Metall, has compared the situation to a dangerous downward trend, using the example of ZF, a supplier on Lake Constance, which faces potential separation and job losses. Resch is in discussions with the state government in Stuttgart about ZF, and her colleague Horst Ott is in contact with the state chancellery in Munich.
IG Metall's proposed measures are expected to focus on financial support, innovation promotion, and job security. This includes state and federal funding to help companies innovate in energy efficiency and future mobility technologies, subsidies for sustainable practices, and facilitating access to financing tools such as green bonds. The aim is to modernize industry capabilities while protecting existing jobs.
One proposed solution is the creation of a fund to support companies and preserve certain technologies, such as electric mobility and software for autonomous driving. IG Metall also supports the SPD's plans to introduce a collective bargaining agreement law, which would only allow companies that submit to industry agreements to participate in public tenders.
However, IG Metall is opposed to the federal government's proposal to make overtime bonuses tax-free, stating that their collective bargaining agreements are already flexible enough.
The union is also preparing for works council elections scheduled for spring 2026, with a focus on contributing to company preservation efforts. Unfortunately, IG Metall is currently struggling with high membership losses, with around 400,000 members according to its own figures.
The business community is strongly opposed to IG Metall's plans, with the president of the Baden industry, Bert Sutter, condemning such plans as "defamation of entrepreneurs". Despite this, Resch is open to the idea of the state intervening to preserve companies, similar to how it once did with Lufthansa.
The stakes are high, with the existence of 9,000 jobs at ZF alone in Bavaria at risk. It is now important that plans such as investments in infrastructure or the Germany fund are implemented quickly and decisively to help companies, secure jobs, and stabilize municipal economies.
[1] Relevant examples of nationwide support programs include the "DNA of future-proof mobility" funding initiative, which targets innovative technologies in the automotive sector, and sustainability bonuses, energy-efficient renovations with subsidies, and energy management funding, which help companies reduce emissions and energy costs while boosting investment in innovation.
- IG Metall is proposing the creation of a fund to support companies and preserve certain technologies, such as electric mobility and software for autonomous driving.
- The union's proposed measures are expected to focus on financial support, innovation promotion, and job security, including state and federal funding to help companies innovate in energy efficiency and future mobility technologies.
- IG Metall is in discussions with the state government in Stuttgart about ZF, a supplier facing potential separation and job losses, and supports the SPD's plans to introduce a collective bargaining agreement law.
- The union is also preparing for works council elections scheduled for spring 2026, with a focus on contributing to company preservation efforts, and has compared the situation to a dangerous downward trend in the mechanical engineering and automotive industries.
