German unions caution of large-scale job losses
In a joint statement, the unions warned that energy-intensive industries such as steel production, chemicals, and construction materials are now vulnerable.
Numerous trade unions in Germany have warned of the dire effects of the country's growing energy costs, warning that hundreds of thousands of jobs are at risk due to electricity rates that surpass international standards.
In a joint statement, the unions warned that energy-intensive industries such as steel production, chemicals, and construction materials were now vulnerable.
On his account, the first Chairman of the IG Metall trade union Jorg Hofmann, said, "the German government must intervene to steer the price of industrial electricity."
"Otherwise, steel production, the aluminum industry, and other energy-intensive sectors risk disappearing from Germany sooner or later," he added.
That would "directly and indirectly affect hundreds of thousands of jobs," Hofmann said.
The trade unions called for more statewide strikes and protests on Thursday, intending to press their case for internationally competitive industrial electricity prices and long-term power cost stability.
For several months, German business has been complaining about higher local energy costs in comparison to international standards.
Although the government has taken steps to minimize the price increase, unions claim that these steps would result in an increase in electricity prices.
Power costs in Germany have been growing since the fall of 2021, with the initial increase attributed to rising consumption amid global coronavirus lockdowns.
Natural gas shortages have been an element driving increasing electricity prices since the war in Ukraine started in February last year.
Germany had one of the highest electricity rates in the world as of June 2022, at $0.52 per kilowatt hour (kWh).
In the stock market, the price of electricity for the coming year in Germany hit €850 ($850) per megawatt-hour (MWh). Oil and gas prices have skyrocketed as the West uses hydrocarbon supply as a bargaining tool to push Russia's hand.
Fuel and power market prices have changed correspondingly, resulting in double-digit energy inflation.
Rising energy prices and runaway inflation have severely harmed Europeans' livelihoods after Europe broke energy relations with Russia, Europe's main source of natural gas, over the war in Ukraine.
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