German auto workers and retail staff escalate protests as cost-cutting plans trigger mass walkouts
Published on 07/04/2026 at 20:56 | Redaktion boerse-global.de
Tens of thousands of employees across Mercedes-Benz and Germany’s retail sector took to the streets on 3 July, in one of the widest labor actions the country has seen in months. The protests signal mounting frustration with management’s cost-cutting programs, which workers and unions describe as a frontal assault on long-standing wage agreements.
Mercedes-Benz: 33,000 workers rally against €5bn austerity plan
The IG Metall union reported that over 33,000 Mercedes-Benz employees walked off the job at plants in Sindelfingen, Stuttgart, Bremen and Hamburg. The company’s own estimate was lower, at roughly 16,000 demonstrators. In Sindelfingen alone, the union counted 20,000 participants, while the plant’s security put the figure at about 10,000.
At the heart of the dispute is a five-billion-euro savings program announced by management. The board plans to increase the weekly working hours from 35 to 40 without any pay adjustment. In addition, a special payment for around 90,000 workers has been postponed. “This is an attack on existing collective agreements and the welfare state,” said Ergun Lümali, chairman of the company’s works council.
The automaker’s financial performance has been weakening. In the first quarter of 2026, profit dropped 17 percent to €1.43 billion, while earnings before interest and taxes fell 30 percent to €1.8 billion. The sales margin stood at 5.7 percent. Roughly 40,000 jobs outside production are affected; 5,500 employees have already accepted severance agreements. Further protests are planned, including a car convoy through Stuttgart on 9 July.
Retail walkouts hit Edeka, Kaufland, Ikea and Primark
Simultaneously, the ver.di union called nationwide warning strikes across the retail and wholesale sectors on 3 July. Stores operated by Edeka, Kaufland, Ikea and Primark saw walkouts. In Baden-WĂĽrttemberg, the actions continued into 4 July.
ver.di is demanding a seven percent wage increase for the sector’s roughly 5.2 million employees, amounting to at least €225 more per month on a one-year contract. In Baden-Württemberg, the demand is for an extra €300 a month for regular staff and €150 more for apprentices.
Germany’s retail federation HDE has countered with an offer of a wage freeze for the first six months, followed by 2 to 2.4 percent from November 2026 and then another 1.5 to 2 percent from August 2027. Employers want a total contract term of 24 months.
Next rounds of negotiations loom
ver.di plans to raise pressure further. Talks are scheduled for 6 July in Hesse and the states of Lower Saxony and Bremen, followed by Baden-WĂĽrttemberg on 10 July. For wholesale trade in North Rhine-Westphalia, the next round is set for 13 July, while retail talks in the same state resume on 26 August.
Volkswagen joins the wave of unrest
The turbulence is not limited to Mercedes-Benz. IG Metall chairwoman Christiane Benner warned, “The key to a successful transformation lies in investment, not in one-sided cuts.” At Volkswagen, the situation is also deteriorating. Over 4,000 workers in Emden staged a protest on 3 July. Reports suggest the carmaker may cut up to 100,000 jobs worldwide and close four plants. The union has announced further actions in the coming months, describing a “difficult summer” ahead for the entire industry.
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