Despite high inflation, IG Metall expects stable economic development for the coming year, to which the wage agreement in the metal and electrical industry has also contributed.

In the coming year, the combination of state relief and tariff increases will become a "billion booster," said First Chairman Jörg Hofmann in Frankfurt of the German Press Agency.

"Consumer power is stabilized."

Of course, there are still global risks such as an intensification of the Ukraine war or the unresolved Covid situation in China, the IG Metall boss admitted.

"But from my point of view, the glass is more than half full, and the prudent collective bargaining policy of IG Metall and other unions has contributed to this."

Hofmann defended the compromise negotiated in Baden-Württemberg for around 3.9 million employees in the metal and electrical industry nationwide, despite current real wage losses.

In the next two years, it ensures that employees will receive wage increases in two stages of 8.5 percent and 3,000 euros in tax- and duty-free one-off payments.

The union has always said that the current extreme rates of inflation cannot be compensated for solely by wage increases.

"In addition, there are already noticeable state relief for the budgets, as we have always called for," said the union boss.

More investment in employees

Politically, in 2023 it will continue to be a question of significantly increasing the pace of energy and transport transitions as well as digitization, according to Hofmann.

This necessarily included investments in the employees who were to accompany these processes.

“We need more oomph in terms of qualification and labor market support.

The transformation in times of a shortage of skilled workers will only succeed if not only investments in machines and products are promoted, but also the employees are supported in the change for a second vocational training.

"You can't leave that to the market alone, government action is needed here," demands Hofmann.

The metalworker cited the automotive industry and its suppliers as an example: "When the new Euro 7 emissions standard is passed in 2028 and the last optimized combustion engine comes onto the market, around 80,000 people who are still in the labor market today will suddenly be out of work Development and testing work.” You have to use the next five years not only to say goodbye to these people when they retire, but to get them qualified for new jobs.

For this purpose, IG Metall proposed the transformation short-time work allowance.

"This cannot be paid for from the budget of the Federal Employment Agency alone.

We need a good portion of the 177 billion euro climate fund to also support people’s professional reorientation and qualifications.”