German industry leaders propose return to 40-hour work week

Major German industrial leaders, including executives from Mercedes-Benz and Stihl, are advocating for a return to a 40-hour work week from the current 35-hour standard, without increasing monthly salaries. Proponents argue this shift is necessary to combat rising labor costs, which currently average approximately 49.50 euros per hour—significantly higher than the European Union average of 33.70 euros.

This proposal comes as the German manufacturing sector faces significant challenges, including high energy costs and intense international competition. While industrial orders in July showed a 2.5 percent increase due to large contracts in the transport sector (such as aircraft and naval vessels), underlying demand remains uneven. Orders in the automotive sector fell by 12.5 percent, and machinery saw an 8.4 percent decline, highlighting a complex economic landscape where productivity and competitiveness are under scrutiny.