The skilled trades community hopes for a quick end to the war in Ukraine. (Photo: © ostill/123RF.com)
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The skilled trades sector condemns Russia's attack on Ukraine. It is causing unimaginable suffering for the people living there and is already having noticeable consequences for businesses in Germany.
Russia's attack on Ukraine has shocked the world, Europe, and Germany. For many years, it seemed unthinkable that such a war could break out again on European soil. The consequences of the conflict are catastrophic . Those most affected are the people of Ukraine, who fear for their lives or, in the worst cases, have already lost them. In addition, there is widespread destruction in Ukrainian cities. The war is also having repercussions for Germany . Particularly in foreign and security policy, there are already major processes of rethinking underway.
But there are also consequences for the economy , especially in the areas of trade, energy supply, and refugee migration . Further price increases for oil and gas are expected , as well as for commodities like steel and wheat. The transport sector also faces potential repercussions due to disrupted supply chains and the absence of workers from Ukraine. The Institute for Employment Research anticipates a " weakening of the global and German economy " as a result of the war.
In light of the sanctions imposed on Russia by Germany, the European Union, and other countries, companies should assess whether they are affected and, if so, take appropriate action to avoid violations . While the punitive measures are designed to have a significant impact on Russia and minimal consequences for the European economy, their effects will nevertheless be felt here as well. On the one hand, there are sanctions related to goods and those targeting the financial system . On the other hand, there are sanctions directed against individuals within Russia's political, military, and economic elite.
All of this also affects the skilled trades. They strongly condemn the attack on Ukraine . Hans Peter Wollseifer , President of the German Confederation of Skilled Crafts (ZDH), assured the people of Ukraine and those of Ukrainian descent in Germany of the solidarity of the skilled trades . He welcomed the imposed sanctions: "As German businesses, we expressly support the Federal Government's decisions to impose massive sanctions against Russia's military aggression. We are aware that this will also result in considerable losses for us ." Nevertheless, it is important to maintain the economic strength of businesses as much as possible . Wollseifer: "Because this, too, is ultimately a basis for our humanitarian aid."
Operations management
Operations management
The German Construction Industry Federation (ZDB) welcomes the German and European sanctions against Russia. However, they are already having negative consequences for the German construction industry. "The effects of the Russian war on construction activity in Germany are becoming more visible every day . It is therefore a matter of common sense to keep the negative impact on domestic businesses and jobs to a minimum ," emphasizes ZDB Managing Director Felix Pakleppa . Currently, there is a significant price increase for bitumen, which is essential in road construction, and for steel.
"Our member companies are currently receiving very few offers for steel mesh, beams, bar stock, and sheets. Pipes and aluminum products are also affected," said Pakleppa. He therefore calls for "unbureaucratic measures to safeguard construction activity in Germany." The immediate introduction of material price adjustment clauses, including for existing contracts, is necessary to ensure the continuation of important construction projects. We therefore urgently need contract-specific solutions to counteract the current destabilization caused by raw material costs. Ultimately, however, as with gas, we must free ourselves from dependence on just a few suppliers ."
The baking industry reacted similarly . "Freedom, democracy, and the rule of law don't come for free . Defending them brings economic and social challenges. The baking industry is prepared to face these challenges and contribute to overcoming them ," explained Michael Wippler, President of the Central Association of the German Baking Trade . Energy prices, which had already been rising for some time, have increased even further due to the war. Energy-intensive bakeries are particularly affected. "If the federal government doesn't take countermeasures, this development could overwhelm the financial capacity of the affected companies, employees, and private households ," said the association's Managing Director, Daniel Schneider . He called for short-term measures to reduce and stabilize energy prices.
"Now is the time to recognize that the free world must be united and resolute in defending democracy to prevent further Russian expansion into our neighboring countries," emphasizes the North Rhine-Westphalian Chamber of Skilled Crafts . A new course is needed in foreign and security policy. "This also means that we can no longer make our energy and raw material supplies dependent on Russia," say the presidents of the state's skilled crafts organizations: Andreas Ehlert ( Handwerk.NRW ), Berthold Schröder ( Westdeutscher Handwerkskammertag ), and Hans-Joachim Hering ( Unternehmerverband Handwerk NRW ).
Kurt Krautscheid, spokesperson for the Rhineland-Palatinate craft businesses, states : "The general conditions regarding prices and availability of materials were already precarious before the outbreak of the war . Now the situation has worsened further and is drastically impacting the energy sector . It is now, at the very latest, high time to implement targeted political measures to bring about swift and comprehensible relief that will immediately and noticeably benefit craft businesses."
"It is to be feared that this conflict will also influence economic development this year ," says Bernd Wegener , President of the Saarland Chamber of Skilled Crafts . "In particular, the significant price increases for certain energy sources are having a negative impact on the cost situation of businesses. But despite all the economic repercussions, we should above all think of the people who are suffering from this war and fleeing to us." The skilled trades are aware of their social responsibility . "We support refugees in their social and professional integration. The skilled trades training and job market offers excellent opportunities for individual life and future planning."
The war is impacting the situation of businesses and employees, says Robert Wüst , President of the Brandenburg Chamber of Skilled Crafts . "Our businesses in Brandenburg are also feeling the effects of these developments every day. Cost increases can only be passed on to customers to a limited extent . Many companies are left to absorb a large portion of the price hikes." He added that some businesses no longer have the reserves to offset these costs due to the coronavirus pandemic . "The Brandenburg Chamber of Skilled Crafts is therefore calling on politicians to implement a comprehensive package of measures to reduce energy costs." While the reduction of the EEG surcharge is a step in the right direction, it is insufficient . " Further relief is needed through reductions in tax contributions . In addition, public contracting authorities in Brandenburg must be included in price adjustment clauses to participate in future increases in material prices."
The Chambers of Skilled Crafts in Mecklenburg-Western Pomerania are therefore demanding an immediate tax cut on electricity, natural gas, heating oil, and fuels. They are urgently calling for relief for small and medium-sized enterprises (SMEs) and craft businesses that depend on mobility and security of supply. "In light of the war in Ukraine, we demand an immediate halt to the spiraling prices . If action is not taken now, we risk businesses going bankrupt due to energy costs."
Matthias Forßbohm , President of the Leipzig Chamber of Skilled Crafts , is particularly concerned about the sharply rising fuel prices . He, too, is calling for a swift tax cut : "For businesses, it's now about competitiveness and, in the medium term, about survival . If the government foregoes a portion of its tax revenue now, this will lead to higher revenues over a longer period." Despite all the concerns about local businesses, everyone agrees: the war must be ended as quickly as possible to prevent further suffering in Ukraine.
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