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Europe roots for German union in battle for higher pay

Emboldened by an economy running at full steam, workers in other sectors of the German economy are following the call of the metalworkers' union for higher pay - and Germany's trading partners are cheering them on from the sidelines.

Europe roots for German union in battle for higher pay
Bosch employees at a "warning strike" in Saarland in January. Photo: DPA

Leading the fight is the powerful IG Metall union, which represents about 3.9 million workers in the nation's crucial metal and electrical engineering industries.

It is seeking a six-percent wage hike and the right for staff to switch from a 35- to a 28-hour week for two years – with limited salary loss in some cases.

After mobilising more than 600,000 workers in a series of short “warning strikes” this month – including at Volkswagen, BMW, Bosch and Siemens – union leaders return to the negotiating table Wednesday for a decisive round of talks with company bosses.

If no progress is made, IG Metall has threatened 24-hour walkouts and raised the prospect of staging its first open-ended strike since 2003.

“We are prepared for anything,” IG Metall boss Joerg Hofmann said last week.

With tensions rising, the battle is being closely watched at home and abroad.

Leading the way

The biggest hurdle in the talks is IG Metall's insistence that employers top up the salaries of some of the workers who choose to reduce their hours, such as low-earning shift workers or those caring for children or ailing relatives.

Employers have slammed the demands as too costly and even discriminatory to staff already working part-time without additional compensation. They have so far only offered a two-percent wage increase.

But the union, which was instrumental in pushing through a 35-hour week in the 1990s, says it is fighting for a better work-life balance and insists German companies can afford it at a time when order books are full and unemployment is at a record low.

The influential IG Metall has already inspired other unions to flex their muscles too.

The DBB public service union said it will ask for “a significant” salary hike in next month's negotiations with the government, and wants the work week lowered from 41 to 39 hours for nearly a million civil servants.

“We held back in the previous wage negotiations. That won't be the case this time,” DBB head Ulrich Silberbach told the business weekly Wirtschaftswoche.

The union will unveil its demands on February 7th. Last year, it sought a five-percent wage increase.

Germany's largest services sector union Verdi is meanwhile calling for a six-percent salary boost for 130,000 Deutsche Post workers or the option to trade some of the cash for more time off.

The “period of wage moderation” that has played a key role in German competitiveness has “ended”, the country's “wise men” council of economic experts said in its latest report, a trend that has accelerated in the past two years as the economy picked up speed.

Powering inflation

The fight for bigger payslips in Europe's powerhouse economy is welcome news for the European Central Bank which sees higher wages as key to driving up stubbornly low inflation.

Despite a robust economic recovery, eurozone inflation remains far off the bank's goal of just under 2.0 percent, discouraging it from ending crisis-era stimulus measures.

The unions' demands are also likely to be cheered by critics of Germany's huge current account and budget surpluses, who believe giving Germans more spending power will drive up consumption and spur demand for imports – indirectly benefiting other countries.

“Faster wage growth in Germany – where the economy is operating above capacity – would also help Germany's European peers because it would help lift euro area inflation,” Christine Lagarde, head of the International Monetary Fund, wrote in a recent blog post.

The German government has largely kept mum on the salary debate as Chancellor Angela Merkel's conservatives and the centre-left Social Democrats remain locked in tortuous talks on forming another coalition government.

But Berlin will have to show its hand soon.

On February 26th, Interior Minister Thomas De Maiziere will open the negotiations with the DBB civil servants' union and face down their demands for more pay – at a time when Berlin's state coffers are fuller than ever.

For members

WORKING IN GERMANY

EXPLAINED: The 25 most in-demand jobs in Germany

For those considering relocating to Germany - or looking for a new profession - here are the most in-demand jobs out there, according to a study by LinkedIn.

EXPLAINED: The 25 most in-demand jobs in Germany

Germany is desperate to fill jobs. In autumn last year, authorities said there was a shortage of 390,000 skilled workers. 

The new government plans to ease red tape and overhaul immigration policies to make it easer for non-EU nationals to come to the country. 

READ ALSO: What Germany’s coalition proposals mean for citizenship and immigration

But many people already within Germany might also be thinking about a change of career, or pivoting to a related sector, especially after the Covid pandemic changed the world of work. 

For those who are curious, international job search engine LinkedIn has published a list of jobs that are in-demand in Germany. Although lots of positions in Germany require that you speak German, many companies are international and encourage English speakers to apply.

What is the list?

The so-called LinkedIn Jobs in Trend 2022 list shows the 25 occupations that have grown the most over the past five years compared to other other positions. 

The list “allows insight into how the job market is evolving and the long-term opportunities it presents – whether you’re looking to change careers, re-enter the workforce or upskill for future challenges,” said LinkedIn. 

It’s based on LinkedIn data between January 2017 and July 2021. 

READ ALSO: How to boost your career chances in Germany

Here is the list of the top 25 positions, including the core skills required for each and the desired amount of experience for candidates according to LinkedIn.

In some of the descriptions below we haven’t translated the job name  to German – that’s because it is usually advertised in Germany with the English name.

1. Consultant for the public sector (Berater*in für den öffentlichen Sektor)

Responsibilities: Advising public and government institutions on the modernisation and digitalisation of administration and infrastructure

Most common skills: Public Policy, Management Consulting, Policy Field Analysis

Top regions hiring in: Berlin, Hamburg and Munich areas

Average years of experience: 2.8 

2. Product analyst (Produktanalyst*in)

Responsibilities: Product analysts use metrics to evaluate a company’s products to determine whether they meet current and future market needs

Most common skills: Tableau, Google BigQuery, SQL

Top regions hiring in: Berlin, Hamburg and Munich areas

Average years of experience: 3.7 

A man at his home office desk.

A man works at his ‘home office’ desk. Photo: picture alliance/dpa | Sina Schuldt

3. Business development specialist or consultant (Beschäftigte in der Geschäftsentwicklung)

Responsibilities: Business development employees develop companies, enter new markets and evaluate sales opportunities

Most common skills: salesforce, account management, inside sales

Top regions hiring in: Berlin Munich and Frankfurt areas

Average years of experience: 3.3

4. Sustainability manager (Nachhaltigkeitsmanager*in)

Responsibilities: Sustainability management employees are based in corporate social responsibility (CSR) departments and look after the social, environmental and economic aspects of a company

Most common skills: Sustainability reporting, corporate social responsibility, life cycle assessment management

Top regions hiring in: Munich, Berlin and Hamburg areas

Average years of experience: 3.8

5. Cyber Security Specialist (Cyber Security Spezialist*in)

Responsibilities: Unlike IT security, cyber security is not limited to the environment of your own company, but also keeps an eye on wider threats from the internet in order to ward off viruses, Trojans or ransomware

Most common skills: ISO 27001, Security Information and Event Management (SIEM), vulnerability assessment

Top regions hiring in: Munich, Frankfurt and Cologne-Bonn areas

Average years of experience: 7.1

6. Developer for machine learning (Entwickler*in für maschinelles Lernen)

Responsibilities: Machine learning developers create so-called artificial intelligence. They research and design models and algorithms that enable machines to recognise patterns in large volumes of data, among other things

Most common skills: TensorFlow, Python (programming language), Keras 

Top regions hiring in: Berlin, Munich and Cologne-Bonn areas

Average years of experience: 3.3 

READ ALSO: Working in Germany – 7 factors that can affect how much you’re paid

7. User Experience (UX) Researcher

Responsibilities: User experience researchers find out what users need and want and prepare these findings for developers, marketers, designers and others

Most common skills: Usability testing, design thinking, human-computer interaction

Top regions hiring in: Berlin, Munich and Cologne-Bonn areas

Average years of experience: 4.6

8. Real estate finance specialist (Spezialist*in für Immobilienfinanzierung)

Responsibilities: Real estate finance specialists accompany and advise clients from the initial property enquiries stage to closing the deal and agreeing on financial arrangements

Most common skills: Construction financing, finance, sales

Top regions hiring in: Munich, Frankfurt and Hamburg areas

Average years of experience: 5.3

9. Head of Public Affairs (Leiter*in Public Affairs)

Responsibilities: Public affairs is the strategic aim to integrate the interests of the employer into political decision-making processes. Also known as lobbying, the job description should not be confused with public relations (corporate communications)

Most common skills: Politics, international relations, strategic communication

Top regions hiring in: Berlin, Munich and Cologne-Bonn areas

Average years of experience: 7.2

10. Information security officer (Beauftragte*r für Informationssicherheit)

Responsibilities: Information Security Officers protect data in analogue and digital form. To do this, they ensure that sensitive data is only accessible to authorised persons at all times.

Most common skills: ISO 27001, Information Security Management System (ISMS), data protection management

Top regions hiring in: Frankfurt, Munich and Berlin areas

Average years of experience: 10.2

11. Specialist in talent acquisition (Spezialist*in für Talentakquise)

Responsibilities: Talent acquisition specialists identify suitable job candidates and take care of the strategic development of the Talent Acquisition department

Most common skills: Employer branding, sourcing, talent management

Top regions hiring in: Berlin, Munich and Frankfurt areas

Average years of experience: 3.8

12. Expansion manager

Responsibilities: Expansion managers accompany the growth of companies and take care of things like the purchase or leasing of business space in optimal locations

Most common skills: Business development, marketing, strategic planning

Top regions hiring in: Berlin, Düsseldorf and Munich areas

Average years of experience: 5.7

13. Test engineer (Prüfingenieur*in)

Responsibilities: Cars, wind turbines, lifts, amusement park rides and countless other technical constructions must be regularly checked for safety. This is where test engineers come into play

Most common skills: LabVIEW, Matlab, electrical engineering

Top regions hiring in: Munich, Hamburg and Tübingen areas

Average years of experience: 4 

14. Marketing (Marketingmitarbeiter*in)

Responsibilities: Marketing employees (Associates) support the planning and implementation of marketing activities for companies and organisations

Most common skills: Social media marketing, online marketing, content marketing

Top regions hiring in: Berlin, Hamburg and Munich

Average years of experience: 2.7

15. Data engineer (Dateningenieur*in)

Responsibilities: Data engineers deal with the collection, processing and checking of data

Most common skills: Apache Spark, Amazon Web Services (AWS), Apache Hadoop |

Top regions hiring in: Berlin, Munich and Cologne-Bonn areas

Average years of experience: 4.8 

16. Personnel officer recruiting (Personalreferent*in Recruiting)

Responsibilities: Recruiters use job advertisements and various channels to search for suitable candidates for open positions in the company and personally recruit suitable candidates

Most common skills: Active sourcing, e-recruiting, employer branding

Top regions. hiring in: Munich, Berlin and Cologne-Bonn areas

Average years of experience: 3.3 

A woman sits at a desk.

Are you looking for a chance in career? Photo: picture alliance/dpa | Finn Winkler

17. Manager in strategic partnerships (Manager*in Strategische Partnerschaften)

Job Purpose: Strategic partnerships managers are responsible for building and maintaining relationships with business partners to further the development and distribution of their own products and services

Most common skills: Business development, account management, product management

Top regions hiring in: Berlin, Munich and Frankfurt areas

Average years of experience: 6

18. Head of Software Development (Leiter*in Softwareentwicklung)

Responsibilities: Software Development Managers are responsible for all stages of software application development. They control and structure planning, organisation and execution

Most common skills: Agile methods, cloud computing, product management

Top regions hiring in: Berlin, Munich and Frankfurt areas

Average years of experience: 12.2 

READ ALSO:

19. Data science specialist

Responsibilities: Data science experts or data scientists help companies to make data-based decisions. They build a structured database from raw data, analyse data and prepare it with business background knowledge

Most common skills: Python (programming language), R, SQL

Top regions hiring in: Berlin, Munich and Hamburg areas

Average years of experience: 3

20. Robotics engineer (Robotik-Ingenieur*in)

Responsibilities: Robotics engineers develop and programme robots and other intelligent assistance systems, whether for medicine, gastronomy, or future cars.

Most common skills: Robotic Process Automation (RPA), UiPath, C++ 

Top regions hiring in: Munich, Frankfurt and the Hanover-Braunschweig-Göttingen-Wolfsburg areas 

Average years of experience: 3.8 

21. Investment associate (Investmentmitarbeiter*in)

Responsibilities: Which areas are worth investing in, which companies are suitable for takeover? This is checked by investment managers through market observations, financial modelling and due diligence procedures

Most common skills: Private equity, corporate finance, mergers & acquisitions (M&A)

Top regions hiring in: Frankfurt, Munich and Berlin areas

Average years of experience: 2.7 years

22. Chief Information Security Officer

Responsibilities: Many companies are not only urgently looking for information security officers (see position 10), senior positions in this professional field are also in high demand

Most common skills: Information Security Management System (ISMS), ISO 27001, IT Risk Management

Top regions hiring in: Munich, Frankfurt and Berlin areas

Average years of experience: 14.3

23. Manager in strategic sales (Manager*in im strategischen Vertrieb)

Responsibilities: Strategic Sales Managers usually look after selected target and existing customers over a longer period of time. Duties include preparing quotations and negotiating prices

Most common skills: Solution selling, business development, account management

Top regions hiring in: Munich, Stuttgart and Frankfurt areas

Average years of experience: 9.3

24. Communications manager (Kommunikationsmanager*in)

Responsibilities: Communications managers take care of PR work inside and outside a company – this includes planning communication strategies as well as implementing campaigns on social networks or organising press appointments and events

Most common skills: Strategic communication, public relations/PR, internal/external communication

Top regions hiring in: Berlin, Munich and Nuremberg areas

Average years of experience: 5.4 

25. Specialist writer for medicine (Fachautor*in Medizin)

Responsibilities: Medical writers produce documents in a medical context, such as study reports for scientific journals, texts for regulatory authorities and information sheets for medicines – but also journalistic texts for websites or magazines

Most common skills: Clinical studies, scientific writing, life sciences

Top regions hiring in: Frankfurt, Berlin and Munich areas

Average years of experience: 5.2

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