IG Metall is calling for 8.2 percent more wages for employees in the steel industry in the coming collective bargaining round.
This recommendation to the IG Metall board of directors was announced on Tuesday by the collective bargaining committees for the around 68,000 employees in north-west Germany and for the around 8000 steelmakers in east Germany.
The term should be twelve months.
"In view of the sharp rise in prices and the good situation in many companies, employees expect a decent increase in their monthly wages," emphasized the district manager of IG Metall NRW and chief negotiator Knut Giesler.
The steel prices are higher than he has ever seen them.
"If you don't earn money at such prices, you can't be that stupid."
The board of directors of IG Metall is to officially adopt the recommendation of the wage commission on May 8th.
In the West, the first round of negotiations is scheduled for May 13.
The peace obligation ends on May 31st.
The steel employers' association rejected the union's claim.
Some, but not all, of the member companies expected adequate to good annual results.
Overall, the liquidity situation in the steel industry is extremely tense in view of the exploding raw material and energy prices.
"There is a great danger that a worsening situation in Ukraine and in particular an interruption in the supply of natural gas to German industry will lead to a sudden, dramatic slump in economic activity in Germany." The executive board member of the association, Gerhard Erdmann, emphasized , the demands of IG Metall do not even come close to being the order of the day.
The steel industry, with corporations such as Thyssenkrupp, Salzgitter and ArcelorMittal, is benefiting from the sharp rise in material prices, but is struggling with the skyrocketing raw material and energy costs.
In addition, demand from the automotive industry is weakening due to supply chain problems.
In mid-April, Thyssenkrupp Steel Europe had sent around 1,300 of the approximately 18,000 employees on short-time work.
DGB boss calls for significant wage increases due to high inflation
In view of the high price increases, DGB boss Reiner Hoffmann is also calling for significant wage increases in the current year.
"Compensation for inflation, employees' participation in productivity gains and fairer distribution remain the main goals of our collective bargaining policy," said Hoffmann of the Düsseldorf "Rheinische Post" (Wednesday).
"We can see that there is scope for distribution in a number of places, as evidenced by reports of record profits and high dividend payments," added the union boss.
Most companies could pay wage increases without further raising prices.
In addition, wages accounted for only part of the total costs, said the chairman of the German Trade Union Confederation (DGB).
Hoffmann refused to use the argument of a wage-price spiral to put the unions on the defensive in the upcoming wage negotiations.
"The fact that fair wages will lead to a spiral in inflation is scaremongering," he emphasized.