German trade union warns of SME's lack of preparation for digitalization

Source: Xinhua| 2018-10-31 00:21:13|Editor: Mu Xuequan
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BERLIN, Oct. 30 (Xinhua) -- Small and Mid-Sized Enterprises (SMEs) in Germany's electric and metal works industries are not taking challenges raised by digitalization seriously enough, the trade union IG Metall warned on Tuesday.

"Whoever doesn't have an idea yet for what to do tomorrow, is risking employees and their future," IG Metall president Joerg Hofmann said at an event in Bonn.

Hofmann cited a study by the Institute for Employment Research (IAB), the research institute of Germany's Federal Employment Agency, which highlighted a lack of preparation in the field.

According to a study, around a third of SMEs in the German metal works and electronics industry have yet to seriously consider the use of related new digital technologies. "Only few have realized that digitalization is an important part of their business model," Rudolf Luz, a member of the IG Metall managing board, commented on the findings.

The Frankfurt-based trade union is consequently concerned that companies could fail to take necessary steps and put jobs in the sector at risk. In order to alleviate the situation, IG Metall announced that it would unveil a "transformation atlas" shortly detailing the state of preparation in the industry for digitalization.

IG Metall is both Germany's and the world's single largest representative body for 2.26 million registered members. Most activities of the trade union are concentrated in the metal works and electronics industry which accounts for some two thirds of exports by the German economy.

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