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German industrial bosses push for return to 40-hour working week

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Some of Germany’s biggest industrial bosses are reigniting the debate over longer working hours.

Nearly 40 years ago, German metalworkers secured a 35-hour working week by winning one of the most contentious disputes in the country’s post-war history.

According to a report in the Financial Times (FT), prominent companies, including Mercedes-Benz and toolmaker Stihl, have demanded that employees work 40 hours a week without additional pay, arguing that high labour costs are undermining the country’s competitiveness.

Speaking to the Handelsblatt newspaper earlier this summer, Martin Brudermuller, chairman of the supervisory board of Mercedes-Benz Group, said, “By international standards, labour here has become too expensive,” arguing that the country had lost its “productivity advantage over key competitors.”

“We must seriously consider returning to a 40-hour working week,” Brudermuller said.

Labour costs in Germany are among the highest in the EU. Hourly labour costs in the manufacturing sector stand at 49.50 euros, which is 47% above the EU average of 33.70 euros and triple the cost of 15.60 euros in Hungary.

Although German employees are more productive than their Eastern European counterparts, unit labour costs, which measure worker productivity, have risen significantly faster since 2023 compared with previous years, according to a study by the IMK, a think-tank funded by German trade unions.

The calls to return to a 40-hour week have come ahead of industrial unions starting their latest wage negotiations in October.

The 35-hour working week was phased in over more than a decade following a dispute in 1984.

In that dispute, tens of thousands of metalworkers in former West Germany staged a seven-week strike to secure shorter working hours.

Today, the 35-hour working week is the collectively agreed standard for approximately one-fifth of German employees, concentrated in sectors such as automotive, engineering, iron, and steel. Across all sectors, the average weekly working time is 37.8 hours.

Germans work fewer average annual hours than employees in almost all other OECD economies. However, this comparison is heavily skewed by the country’s high rate of part-time employment.

What has turned a decades-long debate into an urgent issue of competitiveness is the deepening crisis in the German manufacturing sector.

Having peaked in late 2017, German industrial production has fallen by more than 15% as manufacturers have been hit by back-to-back energy price shocks stemming from anti-Russia sanctions, intensifying competition from China, US tariffs, and the profound shift towards electric vehicles.

According to Marcus Berret, global managing director of the consultancy Roland Berger, high labour costs were once offset by Germany’s other attractive features for employers, such as political stability, strong infrastructure, a skilled workforce, and dense industrial clusters.

However, these advantages have begun to erode as the cost gap with countries in Eastern Europe and beyond has widened:

“When it comes to labour costs, we are not talking about a 10% or 20% gap [with rival economies]. In some cases, we are talking about a three- or fourfold difference.”

So far, manufacturing employment in Germany has declined at a much slower pace; despite the sharp drop in output, approximately 6.5 million people continue to work in the sector.

However, Berret predicts further job losses:

“If I piece together the information I have from individual companies, I estimate that the number of people employed in manufacturing will drop to below 5 million.”

Currently, around 12,000 to 15,000 manufacturing jobs are being lost each month, and major employers such as Volkswagen have already indicated that many more positions in Germany will need to be eliminated.

Economists argue that longer working hours may become inevitable for employees who manage to keep their jobs.

Martin Werding, a member of the German Council of Economic Experts, says that the mechanisms manufacturers once used to compensate for high labour costs, such as relying on temporary agency workers who could be laid off during periods of weak demand, are no longer sufficient.

“Today’s challenges have grown so large that this flexibility is no longer enough,” Werding said.

A shift from 35 to 40 hours without additional pay would increase working time by 14% without changing weekly wage costs. Werding added that the debate over working hours is “far beyond symbolic politics.”

With more than 2.2 million members, IG Metall, Germany’s largest and most powerful trade union, rejects the claim that factories are bound by a rigid 35-hour working week constraint.

Nadine Boguslawski, head of collective bargaining at IG Metall and a member of the Mercedes supervisory board, stated that agreements with employers already provide companies with significant flexibility to increase or reduce working hours.

“A rigid 35-hour working week, as is sometimes portrayed, simply does not exist in the companies I know,” Boguslawski said.

She added that IG Metall remains open to finding tailored solutions for struggling companies.

At the heart of the debate lies a fundamental disagreement between unions and employers over whether longer working hours destroy jobs by distributing a fixed amount of work among fewer people, or protect jobs by making German factories more competitive.

Boguslawski argued that one of the main reasons IG Metall fought hard for the 35-hour working week in the 1980s was to “bring more people into employment” by sharing available work among more people:

“If you reverse this and increase weekly working hours to 40, you generally need fewer workers, regardless of whether those additional hours are paid or unpaid.”

However, economists such as Werding argue that the volume of available work is not guaranteed and depends on the competitiveness of firms.

They suggest that if lower labour costs per unit of output make German factories more competitive, companies can retain production and jobs that would otherwise move abroad or disappear.

It remains unclear whether the push for longer working hours will make it onto the negotiating agenda between unions and employers this autumn.

Gesamtmetall, the metal industry employers’ association, declined to comment on calls to abandon the 35-hour working week, citing “internal deliberations.”

Berret worries that the political and public debate has not yet caught up with the scale of the crisis facing German industry.

“Many people are living in a different reality regarding what lies ahead of us,” Berret said.

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European intelligence chiefs divide over risk of Russian attack

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The intelligence services of the three Baltic states, Sweden, and the Czech Republic hold differing assessments regarding a potential Russian attack.

These warnings followed statements to parliament by Polish Prime Minister Donald Tusk, who said intelligence assessments indicated that Russia could mount an attack against NATO territory with drones or missiles in the coming months as part of efforts to prove that “Article 5 is theoretical rather than practical.”

French President Emmanuel Macron also described Tusk’s warnings as “logical and well documented,” and summoned party leaders and 2027 presidential candidates to an urgent meeting in Paris on Friday.

Among other topics, the meeting addressed intelligence information concerning the growing threat from Russia.

In separate interviews with The Guardian newspaper, three European intelligence officials shared their views on the potential threat that could emanate from Moscow.

Michal Koudelka, head of the Czech Republic’s BIS security service, suggested that alongside increased drone activity, a small-scale incursion into NATO territory bordering Russia could also form part of the Kremlin’s plans.

“This is possible. It could involve a limited attack, false-flag provocations, or a large-scale influence campaign,” Koudelka said in a rare interview at the agency’s headquarters in Prague.

Stating that this scenario could unfold in “months, not years,” Koudelka added that “many people are doing their utmost to ensure it does not happen.”

Officials in the three Baltic countries bordering Russian territory, however, are acting more cautiously regarding the prospect of an invasion or another serious escalation.

They cite the strain on Moscow’s resources in Ukraine and warn that exaggerating the likelihood of an attack could play into the Kremlin’s hands.

Normunds Mežviets, director general of the Latvian State Security Service (VDD), said in an interview at the agency’s headquarters in Riga: “We see no indications that an attack is imminent.”

While Mežviets acknowledged signs that Moscow is preparing to take more decisive steps in Europe, he stated that it remains unclear whether these plans are merely part of a destabilisation strategy:

“Whether they have direct and concrete plans, or whether this is simply part of their general efforts to spread fear and uncertainty in Western society, remains an open question.”

Having criticised Western Europe for years for being soft on Russia, Baltic politicians now find themselves in a curious position: fearing that talk of an imminent invasion could harm their societies and economies, they are telling certain Western leaders to remain calm in their public messaging.

On Saturday, Jonatan Vseviov, secretary general of the Estonian Ministry of Foreign Affairs, condemned the recent “social media panic” regarding a potential attack, writing on X:

“If there is reason to fear an attack, rest assured: we will state it clearly. Until then, stay calm, carry on with your lives, and support Ukraine.”

Mežviets said that, overall, Western Europe waking up to the threat from Russia is a positive development:

“Before 2022, we constantly warned our Western European partners about the threat from Russia, but our voices were largely ignored. In 2022, our partners’ approach changed. They said the Baltics and the Poles had been proven right.”

Neither Mežviets nor Koudelka wished to discuss what concrete intelligence might have been obtained regarding Russia’s alleged plans for the coming months.

Nor did they comment on whether a surprise visit to Moscow last month by CIA Director John Ratcliffe: during which he also stopped in Riga: was undertaken partly to warn the Kremlin about the dangers of attacking NATO.

Following that visit, Kremlin spokesman Dmitry Peskov denied rumours that Russia would attack NATO, saying: “This has nothing to do with reality, and it has nothing to do with the intentions of the Russian Federation.”

Koudelka argued that Russia’s current tactic is to “escalate to de-escalate,” stating that the Kremlin is probing vulnerabilities in Western societies to diminish their support for Ukraine’s war effort.

“They believe that if they escalate enough, European countries will decide not to support Ukraine,” Koudelka said.

Thomas Nilsson, head of the Swedish Military Intelligence and Security Service, said in an interview on the margins of a conference held in Riga: “I have seen no signs of serious consideration in Moscow regarding genuine negotiations. In my assessment, they still believe they can achieve their strategic objectives; therefore, they are merely engaging in negotiation theatre.”

All three intelligence chiefs stated that, whatever else happens, Russia’s sabotage campaign in Europe is likely to intensify in the coming months.

Nilsson described the recent armed drone incident at Leipzig airport, which German authorities attributed to Russian intelligence, as a “game-changer”:

“Sending an armed drone into a busy airport in the heart of Europe… If attacks involve the potential loss of life or the disruption of critical infrastructure with immense consequences for society, I believe that is a game-changer.”

Mežviets noted that Russia has shifted from random acts of sabotage and arson aimed at inducing panic toward specific targets connected to Western support for Ukraine. “We see them trying to target railway infrastructure and infrastructure providing support to Ukraine. We currently observe a shift toward defence industry targets,” he said. “If you do that, the psychological operations effect is already achieved; thus you accomplish both at once,” he added.

Nilsson stated that several objectives lie behind the recent intensification of Russian sabotage activities: reducing support for Ukraine, creating divisions within NATO, and unsettling European populations.

“In my view, Moscow would like nothing more than for NATO to engage in endless discussions about Article 4 consultations while taking no concrete steps,” the Swedish official said.

Koudelka noted that another effect of the sabotage campaign is that it strains the resources of intelligence services, as suspicions frequently linger even when incidents stem from other causes.

“Now, every fire or every malfunction must be investigated by intelligence services as a potential terrorist attack, and that is a good outcome for them,” the intelligence chief said.

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AfD weakens CDU across state elections as Weidel offers Merz talks

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Although two entirely different parties emerged victorious in two elections held in Germany at the weekend, the common denominator was that Alternative for Germany (AfD) eroded the Christian Democrats (CDU).

In the Mecklenburg-Western Pomerania election in particular, the surprise was not that the AfD finished as the leading party with 38.2%, but that the CDU fell below the electoral threshold for the first time in the history of the Federal Republic.

In the Berlin election, when compared with the 2023 vote, the AfD drew most of its support from non-voters (65,000) and CDU voters (56,000).

Following the elections in Mecklenburg-Western Pomerania and Berlin, AfD co-leader Alice Weidel reiterated her forecast that the CDU will not win any federal elections in the future.

According to Weidel, voters are no longer “swallowing the platform of an obsolete people’s party.”

Noting that the AfD did not find it regrettable that the Christian Democrats would no longer be represented in the Schwerin state parliament, Weidel cited as the reason that “the CDU had already rejected all forms of cooperation.”

Speaking of “excellent results” at a federal press conference held after the elections, Weidel argued that it was becoming increasingly clear that the AfD would replace the CDU as a people’s party (Volkspartei).

She remarked that the CDU’s “foolish firewall policy” was responsible for the strong performance of the Left Party in Berlin, thereby enabling red-red-green (Left-Greens-SPD) coalition majorities.

Weidel offered “talks” to Federal Chancellor Friedrich Merz and stated that the AfD was prepared to end the “stagnation” in the state.

Calling on Merz to ensure that the CDU/CSU drew lessons from the election results, Weidel said, “If the CDU barely clears the 5% threshold in Mecklenburg-Western Pomerania and receives very weak results, then the Chancellor must draw the consequences.”

Criticising the government, the AfD leader also said that major reforms had “only been announced” for a year and a half, adding, “One should not just announce them; one must actually implement them.”

Meanwhile, despite the AfD’s electoral victory in Mecklenburg-Western Pomerania, where it outstripped the SPD, the AfD’s lead candidate Leif-Erik Holm is “not very hopeful” about being able to form a government.

Holm said they would offer talks to all other parties in the state parliament, but that he did not expect to come to power on his own.

Announcing that the AfD would nevertheless lay claim to the state parliamentary presidency because the party holds approximately 45% of the seats in the legislature, Holm also indicated that a Covid-19 investigative committee would be established.

Speaking to NDR Info, the AfD politician said, “I believe we could come to power. However, at present, it does not look as though that will be the case.”

Holm noted that it currently appeared as though a red-red-green majority would emerge, adding, “This is certainly not a good direction for our country to take.”

Holm reaffirmed his party’s claim to power. Stating that the electorate had handed this mandate to the AfD by a large majority, he said, “For this reason, we expect from the other parties that we are able to engage in dialogue with one another.”

Indicating that he wanted to conduct these talks alongside the AfD’s lead candidate Enrico Schult, Holm was defeated by Minister-President Manuela Schwesig (SPD) in the direct mandate race in Schwerin and will not enter the state parliament.

In the event that the AfD fails to join a coalition as expected, Holm plans to remain a member of the Bundestag.

Kristin Brinker, the AfD’s lead candidate in Berlin, said that the “firewall” was no longer between the Berlin CDU and the AfD, but within the CDU itself, asserting that the AfD was “the only party winning support from the conservative wing.”

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AfD leader Weidel claims Left Party wants to shoot the rich

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Alternative for Germany (AfD) leader Alice Weidel has claimed that Die Linke (the Left Party) will “shoot the rich and expropriate capitalists”.

Appearing live on ZDF television on Sunday, when elections were held in Berlin and Mecklenburg-Western Pomerania, the AfD leader spoke about the Berlin vote.

Weidel argued that the Left Party had become the strongest element in Berlin “because of the CDU’s ‘firewall’ policy”.

Weidel then asserted that the Left Party wanted “to expropriate, to shoot the rich, to pressure capitalists through rent caps; in other words, to implement elements of planned socialism”.

ZDF presenter Shakuntala Banerjee appeared taken aback and, stating that this claim needed to be “verified”, asked: “‘Wants to shoot the rich’?”

In fact, Weidel appears to be pointing to the words of Berlin member Sandra L. at an event organised by the Left Party in 2020. At the time, a video containing her remarks circulated online.

The incident occurred at a party strategy conference held in Kassel. While the debate was actually on energy policy, the Left Party member said: “The energy transition is necessary even after the revolution. And even if we shoot the top 1% of the rich, we will still want to heat our homes.”

The Left Party’s then co-chair Bernd Riexinger, who was present at the time, made a joke about forced labour and replied: “I just wanted to add: we won’t shoot them; we will make them do useful work.”

Sandra L. later retracted her words in a statement to dpa, saying: “This completely contradicts my political views; I am disgusted by violence against people.”

Riexinger also later expressed regret for not rejecting the comment “immediately and categorically”.

No election manifesto of the Left Party contains a call for the “execution” of the rich or the super-rich. The party states that it is committed to the rule of law and the “free democratic basic order”.

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