Recent Strikes in Germany Affect Automakers’ Production

Audi, BMW, Mercedes-Benz, and Porsche are among those recently impacted by worker strikes in Germany.

Automotive production factories across Germany have been at a standstill as industrial workers have staged 24-hour strikes since last week. The full-day walkouts have cost German companies hundreds of millions of euros in lost production and talks are expected to resume today after the series of strikes. According to Reuters, the IG Metall labor union has threatened to ballot its members for extended industrial action if employers fail to offer concessions after the strikes.

The union is demanding an eight-percent pay rise over 27 months for 3.9-million metal and engineering workers across Europe’s largest economy, pointing to Germany’s fastest economic growth in six years and record low unemployment.

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It is estimated that last week’s strikes cost automakers, automotive suppliers, and engineering firms almost 200-million euros ($248.45-million USD) in lost revenues. So far, employers have offered a 6.8-percent wage increase, but rejected the demand for shorter hours unless they also have the ability to increase workers’ hours when necessary. About half-a-million workers took part in the three days of strikes last week and the union has targeted the automotive industry in particular.

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