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Germany's Far-Right Union Gains Ground Amid Auto Industry Turmoil

Financial Times Companies •
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Mercedes-Benz's Stuttgart plant became a battleground as far-right group Zentrum distributed flyers blaming job cuts on Germany’s dominant union, IG Metall. Workers faced a stark choice: support established labor representation or embrace Zentrum’s anti-union rhetoric tied to the Alternative for Germany (AfD). The divide reflects broader tensions as automakers slash roles—over 100,000 jobs lost since 2018—amid electric vehicle struggles and global competition.

IG Metall, once a powerhouse with 2 million members, now grapples with a 250,000-member decline over a decade. Its president, Christiane Benner, acknowledged eroding worker trust, citing rising costs and political polarization. Nearly 38% of Germans voted for AfD in early 2025 elections, signaling growing disillusionment with traditional unions. Zentrum, founded by ex-Catholic worker Oliver Hilburger, exploits this vacuum, though its ties to AfD leaders like Alice Weidel remain contentious.

Zentrum’s strategy targets “frustrated” employees disillusioned by job insecurity. At Tesla’s Berlin plant—untouched by IG Metall—workers recently backed an independent council over the union. Analysts warn IG Metall risks alienating members by confronting AfD sympathizers too aggressively. “If it adapts too far right, it loses left-leaning activists,” said union expert Klaus Dörre. The group’s influence remains limited, with only 7 of 45 seats at Stuttgart’s works council.

The crisis underscores Germany’s industrial decline. Rising energy prices, fuel costs, and rents strain workers, while the auto sector’s pivot to electric vehicles accelerates job losses. Zentrum’s founder, Hilburger, opposes phasing out combustion engines, framing it as a union betrayal. As elections near, the battle for worker loyalty—and the soul of German labor—intensifies. Zentrum’s network of 150 representatives hints at growing grassroots support, though its viability as a union alternative remains unproven.