Companies in Germany urgently need relief, also in terms of labor market regulations. Switching to a maximum weekly working time would be an important step towards more flexibility.
Germany brings up the rear of the industrialized nations in terms of forecast economic growth. Reforms are also needed in the labor market, which can be perceived as painful.
No economic growth, an ageing society and rising expenditure and contributions: The challenges in labor market and social policy could hardly be greater.
The future of pension funding is the biggest gap in the coalition agreement between the CDU/CSU and SPD. Unpopular measures are also needed to make pensions fit for the future.
The labor market is sending a clear signal: structural reforms are needed now instead of further social benefits, even if they may be unpopular.
To ensure the competitiveness of the mechanical and plant engineering industry, the VDMA is calling for reliable economic framework conditions. A strong industry means a strong economy.
The parties to the collective agreement in the M E industry in Baden-Württemberg have concluded a collective agreement that enables companies to lend employees to each other in order to avoid short-time working or redundancies.
IG Metall wants to secure industrial jobs by giving preference to companies bound by collective agreements. This is the wrong approach.
The mechanical engineering sector is feeling the effects of the recession - yet companies only reduced their workforce by just under 1% in 2024. Even now, the core workforce is to be retained as much as possible.
The Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSJ) has commissioned a special study on the issue of father-friendliness in mechanical and plant engineering as part of the "Success Factor Family" corporate program.
Employment in the mechanical and plant engineering sector is also expected to fall slightly this year. This makes it all the more important to reduce labor costs now.
Less bureaucracy, a maximum tax rate of 25% and an efficient infrastructure are essential to ensure competitiveness. Germany will only remain a strong industrial location through bold reforms.
The VDMA calls for a labor market policy that secures skilled workers, recognizes performance, offers flexibility, and thereby stabilizes our social systems.
On January 1, 2025 and over the course of the next year, a number of changes will be made to the labor market.
On December 18, 2024, the Federal Cabinet decided to extend the period of entitlement to short-time working allowance.
Structural changes are needed, not the expansion of expensive special formats. The extension of the short-time working allowance is a political mistake.
NORDMETALL and the Bavarian Metal and Electrical Industry Association (vbm) reached a pilot agreement with the IG Metall districts on the coast and Bavaria on November 12, 2024.
The German government wants to create incentives to work longer. However, the necessary major reforms are lacking. A new report by the IMPULS Foundation points the way forward.
In industry, employment subject to social security contributions continues to decline. If you want to secure industrial jobs, you have to reduce the burden of social security contributions.
Professional and personalised application management still has plenty of room for improvement in many cases. Low-threshold application processes (such as via WhatsApp) are an interesting new development.
Current VDMA survey: Only 30 percent of the companies surveyed are bound by collective agreements. Companies not bound by collective agreements see too little scope for company solutions and a lack of flexibility in collective agreements.
Germany needs structural changes to its social insurance systems. Higher contributions are not the solution.
The planned amendment to the Residence Act is complicated and legally questionable. It would be simpler to remove the ban on temporary employment agencies in the immigration of skilled workers.
The contribution increases announced in Pension Package II mean further burdens for the economy. The younger generations and employers are expected to solve problems that politicians are not addressing strategically.
Together with other business and employers' associations, the VDMA has sent a letter to Federal Minister of Labor Hubertus Heil in which they make it clear that they reject political intervention in the setting of the minimum wage.
Good salaries are paid in mechanical engineering - even in companies without collective bargaining agreements. A collective bargaining law would only be another unnecessary burden.
On November 14, 2024, the VDMA and the Corporate Learning Community are organizing a BarCamp on the topic of "Artificial Intelligence in the World of Work" in Frankfurt am Main.
In view of the shortage of skilled workers, incentives to work longer are very welcome in the mechanical engineering sector. However, the planned "pension deferral bonus" is far too complex.
Employment subject to social insurance contributions in industry is falling significantly. All the more reason why political reforms are now needed to kick-start the growth initiative.
5,200 jobs have been lost in mechanical and plant engineering since the beginning of the year. Nevertheless, the shortage of skilled workers remains high due to the demographic challenge. What is needed now are structural reforms to secure skilled workers.
In a public position paper, the German Trade Union Confederation (DGB) calls for an increase in collective bargaining coverage through legal measures.
The labor market figures are bad. The federal government must finally move from debate to action. Implementing the growth initiative has top priority.
On July 5, 2024, the Federal Council approved the Second Act Amending the Works Constitution Act. This means that the more specific regulations on the remuneration of works council members can come into force.
BAVC and IGBCE have agreed on a two-stage wage package that guarantees companies planning security until the first quarter of 2026.
At its meeting on 19.06.2024, the Federal Cabinet adopted a formulation aid for the Fourth Bureaucracy Relief Act (BEG IV).
The Executive Board of IG Metall published its recommended demands on 17.06.2024.
Many companies do not have the capacity to recruit skilled workers from third countries. Having temporary work as a partner would be a real door opener, especially for smaller companies.
Employment figures are stagnating, while at the same time there is a persistent shortage of skilled workers. Therefore, reforms to stimulate the economy must be implemented urgently.
Significant burdens for future generations. That is the result of the German government's Pension Package II. Moreover, contribution increases and economic turnaround do not go together. There are other options here.
The Federal Employment Agency (BA) has published its strike statistics for 2023. Compared to the previous year, the number of working days lost has more than doubled. The number of affected companies more than tripled.
NRW's mechanical and plant engineering sector is not only suffering from the effects of global challenges, but also from the implementation of EU regulations, excessive bureaucracy and a lack of planning security.
The "Europe - Experience and Learn" initiative of the state of North Rhine-Westphalia and the European Youth Parliament in Germany e.V. is designed to help trainees gain EU experience abroad.
