IG Metall on public contracts in the railway sector: Better instead of cheaper!

Berlin – IG Metall and works councils are calling for an active industrial policy and a new awarding practice for contracts from the federal, state and Deutsche Bahn in the rail sector. The price must not be the only deciding criterion, says a joint appeal passed today. Right-of-way must be given ecological and social criteria so that rail transport becomes sustainable. The employee representatives are convinced that politics must remove the ground from companies’ short-sighted, profit-focused relocation strategies and create the conditions for more local and sustainable value creation in Germany and Europe. IG Metall is convinced that the announced Tariff Compliance Act can make an important contribution to sustainable procurement practices if it is implemented correctly. IG Metall therefore strictly rejects efforts to largely exempt Bahn AG from the Tariff Compliance Act.

Jürgen Kerner, second chairman of IG Metall, emphasizes the importance of the industry for business location, employment and climate protection: “The rail industry is the backbone of the mobility transition in Germany and therefore a key industry of the future. It is a crucial cornerstone for implementing national climate goals. 55,000 qualified and motivated employees work here, mostly in well-paid jobs covered by collective agreements. In addition to the companies themselves, it is the responsibility of federal and state politicians to provide this industry with future-proof framework conditions. This includes the procurement policy of the public sector and Deutsche Bahn.”

Pay more attention to social and ecological criteria in tenders

The employee representatives are particularly committed to a new awarding practice in tenders: away from the cheapest to the best bidder principle. Cost discipline is important, but should not be an end in itself, says the position paper. “Public contracts must not be aimed solely at the lowest purchase price, as is still common practice. That doesn’t help taxpayers or the climate.” Social and ecological criteria, including life cycle costs, should be given much greater consideration in tendering practices. This is already possible today and is covered by EU law, as is a greater emphasis on regional added value when awarding contracts: “It makes sense and is possible to produce at least 50 percent of a train and the infrastructure in Germany (local content). The federal and state governments must clearly make use of this.”

Relocation strategies stop with reliable and adequate financing

In addition to the incorrect awarding practices, the employee representatives criticize the “massive relocation strategy of many companies in the rail industry to countries with the supposedly lowest manufacturing costs”. Given the vulnerability of supply chains and omnipresent quality problems, this is a dangerous path that can quickly bring entire companies into trouble. According to the works councils, politicians must take countermeasures and set clear, sustainable tender criteria: “An efficient railway industry needs long-term, reliable and adequate financing in order to increase investment incentives and planning security on the one hand and the share of local value creation in Germany and Europe on the other hand.”

Launch an offensive for skilled workers

In order to prepare the railway industry for the future, the employee representatives are calling for a “broad offensive for skilled workers in our future industry,” as the paper states: “The federal government and the Federal Employment Agency must create good framework conditions for skilled workers or make existing qualification instruments better known and to apply these in a practical manner.”

The position paper “Maintain and expand the railway industry – successfully shape the transport transition” was signed by works councils from all major companies in the industry, including Alstom, Siemens Mobility and Stadler Germany. It was passed today at an industry conference organized by IG Metall in Berlin.

Download the full position paper here.

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