German metal, electrical industries face another 300,000 job losses - Anadolu Ajansı

Germany’s metal and electrical industries could lose another 300,000 jobs within the next two to three years as companies struggle with unused capacity and high costs, an employers’ association warned Wednesday.

Oliver Zander, head of the Gesamtmetall employers’ association, told German newspaper Bild that the industries had already shed 350,000 jobs over the past seven years, costing the economy €42 billion ($47 billion) annually in added value.

“Given the underutilization of capacity, another 300,000 jobs are at risk in the metal and electrical industries alone within the next two to three years,” Zander said.

Further cuts could mean an additional annual loss of around €35 billion in added value and reduce employment from roughly 3.7 million to 3.4 million, he warned.

“That would be the lowest figure since reunification in 1990,” Zander said.

According to the report, German manufacturers face growing pressure from cheaper Chinese competition, high labor and energy costs, excessive bureaucracy and US tariffs.

The IG Metall union also cited management failures, particularly among automotive executives, as a factor behind the industry’s difficulties.

The warning comes amid a wage dispute, with IG Metall demanding a 5% pay increase and union officials calling for warning strikes.

The union dismissed employers’ offer of a 1.8% increase by the end of 2028 as inadequate.

“The situation is catastrophic. Many companies are fighting for survival, and there is no improvement in sight,” Zander said, describing the union’s demand as “irresponsible” and warning it could put further jobs at risk.