DGB Bavaria: Investments urgently required – less austerity budget!

DGB Bavaria: Investments urgently required – less austerity budget!

The German Federation of Trade Unions (DGB) Bavaria warns of an impending dependency when it comes to investments in future industries. In a current statement, the DGB firmly rejects the planned “austerity budget” for 2026 and 2027. The DGB urgently calls for increased financial efforts to strengthen Bavaria's economy and labor market in order to avoid the threat of relocation and inactivity. Bernhard Stiedl, chairman of the DGB Bavaria, expressed concerns about possible downsizing paths, bankruptcies and the relocation of jobs. He compares the situation in Bavaria with the massive investments that the USA and China are making in future industries.

Stiedl warned of a deepening of the economic slump in Bavaria and emphasized the need for strong investments and the development of new growth markets. The DGB sees potential primarily in the social sector, for example in the areas of education, health and care, and calls for active support for business start-ups, innovations and qualification programs. In this context, Stiedl appealed to politicians to increase the pace of shaping the economy and the labor market and warned urgently: “Austerity budgets and investment cuts will worsen the situation.”

Growth in membership

In addition to the economic challenges, the DGB Bavaria reported an increase in membership numbers of over 1% last year. The number of members has now reached almost 800,000. The main contribution to this increase comes from unions such as Verdi and IG Metall, which have drawn attention to themselves through numerous strike actions. Nevertheless, collective bargaining coverage in Bavaria has declined: While in 2000 70% of employees still had a collective agreement, now it is only 47%. This illustrates the pressure that unions are under.

The DGB Bavaria is also calling for a collective bargaining law for state contracts. However, this is not included in the CSU's current 5-point plan to strengthen the economy. The union also criticizes inadequate investments in key areas such as energy, housing, infrastructure and health. DGB state leader Stiedl emphasizes the need for investments to avoid broken infrastructure.

Social challenges

Parallel to the economic hardships, DGB Vice President Verena Di Pasquale sees increasing insecurity among the population, which could lead to an upswing for right-wing populist and right-wing extremist parties. To counteract this, Stiedl suggests a “constitutional quarter of an hour” in companies to discuss the values ​​of democracy. Works councils and private organizations could organize such discussions.

Overall, it is clear that the DGB Bavaria is facing both economic and social challenges that require urgent measures. The demands for more investment and a strengthening of collective bargaining are central points in order to secure Bavaria's sustainable future.

For further information please visit the website of DGB Bavaria and BR24.