On the Dash:
- German metalworker strikes reached Audi and Mercedes-Benz, with actions planned at more than 2,000 workplaces.
- IG Metall wants a 5% raise over 12 months, while employers offer 1.3% in July 2028.
- Auto Supplier Schaeffler plans to cut 3,460 jobs and close five European sites, four of them in Germany.
Warning strikes by German metal and electrical workers spread this week to Audi, Mercedes-Benz and auto supplier Schaeffler. IG Metall, the union for the roughly 3.7 million workers in the industry, began the stoppages at midnight Sunday after the no-strike period in contract talks ended.
The union is seeking a 5% raise over 12 months and protections for jobs and plant sites. On Tuesday, Schaeffler said it will cut 3,460 net positions in Europe and close five sites, four of them in Germany.
Strikes spread to Audi, Mercedes-Benz and Schaeffler
IG Metall said more than 25,000 workers took part in warning strikes on Sunday and Monday, including Audi, Mercedes-Benz, Siemens Energy, Rheinmetall, Bosch, Daimler Buses, ZF and thyssenkrupp among the employers affected. The Audi night shift in Ingolstadt planned a two-hour stoppage at 11 p.m. Monday, according to IG Metall’s Bavaria district.
The union widened the actions Tuesday to include Opel, BMW, John Deere, Daimler Truck and Schaeffler, among others. It plans warning strikes at more than 2,000 workplaces by the end of the week.
Employers and union remain far apart on pay and job security
Employer federation Gesamtmetall made its first offer on Oct. 27. It includes a one-time payment equal to 1% of the industry’s average annual gross pay in July 2027, followed by a 1.3% raise in July 2028. The agreement would last 26 months, through the end of 2028.
The German news agency dpa-AFX reported that companies with weak profits could automatically suspend the one-time payment, but IG Metall rejected the offer. The union estimates this would amount to about 0.6% more per year, compared with inflation of up to 3%. It also said employers made no commitments on jobs or sites. IG Metall said the third round of talks is expected to begin Thursday, though dates are still being set with regional employer groups. The union expects a significantly improved offer.
The Schaeffler announcement came as job security remained unresolved in the talks. The company said about 2,660 of the 3,460 positions are in Germany. Half of the affected positions are in production, 30% in research and development, and 20% in other areas. The reductions will continue through 2028. Schaeffler cited weaker demand for combustion-engine vehicles, a delayed ramp-up of electric vehicles, tougher competition, and above-average labor costs in Germany.
Dealers with German franchises should check with factory representatives to see whether the stoppages affect plants that build their models. So far, the reported stoppages have been brief. Audi imports all the vehicles it sells in the U.S. from Europe or Mexico. Its planned Georgia factory is not expected to begin production until the early 2030s.
