German Auto Industry Possibly Heading Towards Strikes

Germany's largest automotive union IG Metall and its automakers have reached a stalemate in talks to negotiate a new contract. The two groups have gone through five rounds of talks to create a new contract. IG Metall has staged warning strikes at PorschePorscheGermany, 1931 > present43 models
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, BMWBMWGermany, 1918 > present87 models
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and DaimlerDaimlerGermany, 1889 > present12 models
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to threaten a larger strike. They have also staged a warning strike at Opel to protest the possible closure of plants and loss of models.

IG Metall wants a 6.5% pay increase, despite slow German growth. They also want fewer contractors in factories who work for less money than the union workers. The automakers have offered a 3% pay increase. 

“We still have no enduring solutions in sight in regards to issues of temporary workers and guarantees of permanent contracts for people completing apprenticeships,”said an IG Metall spokesperson. 

The government also appears to be on the union's side. Wolfgang Schäuble, Germany’s finance minister has said the the workers deserve the pay increase because the company's have profited from Germany's reforms over the last decade. 

The cope with the growing labor costs in Germany, German automakers have slowly been opening new factories in North America and China to build cars for local markets with lower labor costs and better exChange rates. 

Source: Detriot Bureau