German trade unions warn of massive job losses due to high electricity prices

BERLIN - Several trade unions in Germany have warned of the serious consequences of rising energy costs in the country, saying hundreds of thousands of jobs are at risk due to high electricity prices that exceed international standards.

The unions issued the warning in a joint statement, stressing that energy-intensive sectors such as steelmaking, chemicals and building materials are now vulnerable.

"The federal government must intervene to control the industrial electricity price," said Jörg Hofmann, first chairman of IG Metall. "Otherwise steel production, the aluminum industry and other energy-intensive sectors will sooner or later disappear from Germany," he added.

This would "directly and indirectly affect hundreds of thousands of jobs," said Hofmann.

Unions continued to call for nationwide strikes and protests on Thursday, hoping to advance their demand for internationally competitive industrial electricity prices and predictable long-term electricity costs.

For months, German industry has been complaining about higher domestic energy costs compared to other countries. Although the government has taken measures to prevent the price hike, unions say these measures will only increase electricity prices.

Electricity prices in Germany have been rising since autumn 2021, with the increase initially being due to increasing demand as part of the global corona lockdowns. Since the Russian offensive against Ukraine began in February last year, natural gas shortages have become a major factor driving up electricity prices.

In June 2022, Germany had one of the highest electricity prices in the world at $0.52 per kilowatt hour (kWh). The electricity price for the coming year reached 850 euros per megawatt hour (MWh) on the German stock exchange.

The war in Ukraine has sent oil and gas prices skyrocketing as both Russia and the West use hydrocarbon supplies as a bargaining chip to coerce the other.

Market prices for fuel and electricity have adjusted accordingly, triggering double-digit energy inflation.

Soaring energy prices combined with runaway inflation have severely hampered Europeans' livelihoods after Europeans severed energy ties with Russia, Europe's main supplier of natural gas, over the Ukraine conflict.