Embattled German steel industry braces for start of wage talks

Germany's struggling steel industry is preparing for collective bargaining negotiations affecting 82,000 employees nationwide to begin next week.

Ahead of the talks, the powerful IG Metall trade union called on employers to secure jobs and protect wages, adding that all stakeholders share responsibility for safeguarding the sector.

"We want to prevent the bleeding of Germany's key industry and its employees at every level," said IG Metall collective bargaining board member Nadine Boguslawski on Friday.

The first negotiations regarding 68,000 workers covered in the union's north-west and eastern regions are scheduled for Tuesday in Dusseldorf.

But the main date looming on the calendar is September 30. That's when the so-called "peace obligation" ends and the union can legally launch strikes if it believes no headway in the talks is being made.

IG Metall is entering the talks without a specific wage demand but emphasizes that the inflation impacting workers' pocket books must be offset.

"The standard of living must not deteriorate,” Boguslawski said in a statement.

Rising costs and global competition

The German steel industry faces high energy costs and strong competition from China, with the problems compounded by high US tariffs on steel imports

Major companies like Thyssenkrupp have announced thousands of job cuts.

The German Steel Employers' Association rejected calls for wage increases. "While the union appears aware of the industry’s dramatic situation, the demand for higher pay exceeds what our sector can manage under current economic conditions," it said.