Steelworkers, Retail Staff Take to Streets as Germany’s Reform Summit Stalls Over Working Time and Costs
14.06.2026 - 00:32:02 | boerse-global.de
Thousands of steelworkers marched through Berlin and Völklingen on June 12, demanding government action to shield their industry from cheap Asian imports, US tariffs, and soaring energy costs. The protests, called by IG Metall, came as Germany’s steel output slumped to 34.1 million tonnes last year, a historic low. Thyssenkrupp has already announced plans to cut 11,000 positions. “Politicians cannot stop halfway through the industrial transformation,” IG Metall deputy chief Jürgen Kerner warned the crowd.
The same day, a reform summit hosted by the German Chancellery on June 11 had laid bare deep divisions between unions and employers. Internal documents from the meeting showed the two sides far apart on how to fix the country’s economy. Unions point to high energy prices, weak investment, and competition from China as the core problems. Verdi chief Frank Werneke said any reforms must strengthen purchasing power and warned against “social slash-and-burn.” Employers counter that Germany needs supply-side changes: lower social security contributions, less bureaucracy, and a more flexible labor market.
The most sensitive flashpoint is working time. Business associations want a weekly-hours model that would replace the traditional eight-hour day. Unions reject any dilution of the Working Time Act, noting that productivity falls when shifts stretch too long.
A rare sign of compromise emerged in the chemical industry, where negotiators reached a deal in the early hours of June 12 after eight rounds of talks and strikes. For roughly 50,000 workers, base pay will rise by 1.8 percent, capped at €100 per month. Employees also get a one-time payment of €300 or an extra day off. Minimum wages and apprentice compensation go up by 2 percent. Employers had initially offered much less, citing a production drop of 18 percent over three years and the loss of 600 jobs in the final quarter of 2025. For comparison, the construction sector secured a 3.5 percent increase in its 2026 round.
Retail workers are also turning up the heat. Verdi called warning strikes on June 12 at large chains including Primark, H&M, Zara and TK Maxx in North Rhine-Westphalia. A demonstration is scheduled for June 16 in Stuttgart. The union is demanding up to €300 more per month for employees in the wholesale and retail trade.
Conflict is brewing on the regulatory front as well. On June 12, the Hans-Böckler-Stiftung warned about the planned EU legal form known as “EU Inc.” Institute director Daniel Hay said the structure could undermine Germany’s system of co-determination. Companies might relocate their registered offices to member states that lack parity-based supervisory boards. The foundation is calling for the new legal form to be capped at 500 employees.
Internationally, the International Labour Organization adopted its first binding set of rules for platform workers on June 13. The convention guarantees clickworkers minimum wages and accident prevention measures. German unions criticize the text for stopping short of requiring direct employment. The country’s labor ministry is already examining whether to impose such a duty on the courier sector. An EU directive on platform work must be transposed into national law by the end of 2026.
Economy Minister Katherina Reiche (CDU) pressed for speed on June 12, urging a higher overall work volume and a lower tax and contribution burden. The ruling coalition now faces the task of welding the competing positions into a legislative package that can pass before the summer break in early July.
