50,000 jobs at risk
Total metal boss sees de-industrialization beginning
May 21, 2024, 5:26 a.m
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After harsh criticism of the federal government from industry, employers are stepping up: Gesamtmetallchef reports that de-industrialization is already beginning. That will cost thousands of jobs. Addressing the traffic light, he says that appeasement no longer helps.
The president of the employers’ association Gesamtmetall says he sees an “incipient de-industrialization” in Germany and warns of the loss of up to 50,000 jobs in industry. “I can already see de-industrialization beginning. There are a lot of relocations taking place – everywhere,” said Gesamtmetall President Stefan Wolf to the newspapers of the Funke media group.
Companies from the automotive and supplier industries are currently particularly affected. “Many companies are very cautious. Much less is being invested,” said Wolf. “Because of the poor conditions here in Germany, a lot of money is currently flowing abroad instead. We have lost over 300 billion euros in investments.” This number is “dramatic”. If investments are not made here, productivity will suffer in the long term, which will lead to even less competitiveness.
Wolf also said he is also seeing early signs of major layoffs. “Larger automotive suppliers have already announced layoffs. And I fear that this is developing a real dynamic,” he said. “If something doesn’t change quickly, we will see a reduction in jobs, especially in simpler jobs such as production.”
The Gesamtmetall president estimated the potential job losses in the next three to four years at 40,000 to 50,000 jobs. Therefore, something urgently needs to change structurally. “What doesn’t help is appeasement and dismissing the situation as an economic dent,” said Wolf, without directing his criticism directly at Chancellor Olaf Scholz.
Scholz recently had to put up with sharp and direct criticism from BDI President Siegfried Russwurm, who spoke of “two lost years” due to the traffic light coalition. “Germany is at the bottom of the table in all economic data. Our industrial production is falling, fell again last year and will probably fall again in 24,” said Russwurm on RTL/ntv at the end of April.