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2 July, 2007
A mid-June conference in Berlin between two of German’s most important trade unions, ICEM affiliate IGBCE and IG Metall, put forward an innovative plan for the future of the country’s automotive supply industry.
Entitled “Future Prospects for the Automotive Support Industry, Innovation, Growth, and Jobs,” the blueprint calls on all social partners – political parties and governmental officials, auto manufacturers and suppliers, banks, all levels of management, as well as works councils and the trade unions – to overcome the barriers to German-made auto parts, and to develop initiatives that strengthen research, and education and training of staff.
The plan lists obstacles such as high energy costs, global competition, run-away capital, restrictive credit policies of banks, and an overall lack of commitment for domestic financing that limits innovation in the automotive industry.
The two unions cite a number of changes that must occur, including: more available financing for research and development; a focus on quality and technology-driven innovations that takes precedence over any cost factors; a systematic modernisation of German factories; and an emphasis on creating qualified and highly motivated staff, which will drive the innovative process.
And, just as important, IGBCE and IG Metall claim Germany needs a sound financial policy on investors, such as private equity funds and other risk capital ventures, which will stop the closures and plundering of stable domestic auto-supply enterprises.
Germany’s auto manufacturing and auto-supply industries provide a total of 5.3 million jobs, the majority of which find workers represented by either IG Metall or IGBCE. The Berlin conference represents an important cooperative milestone for the country’s two largest manufacturing unions.
The conference was co-chaired by Michael Vassiliadis, a member of the IGBCE governing board, and Berthold Huber, IG Metall’s vice chairman.