Germany's work‑time reform meets industry and Bavarian opposition

The coalition committee scheduled for 1 July will decide on a draft reform that would replace the daily maximum working hour limit with a weekly cap, but only for companies bound by collective agreements. The proposal links the new flexibility to tariff‑bound firms and adds mandatory electronic daily time‑tracking, with small employers (up to ten staff) exempted and longer transition periods for firms with fewer than 50 or 250 employees.

Industry groups and regional politicians argue the draft falls short of the EU‑wide flexibility allowed in other European states. Südwesttextil, representing Germany’s textile sector, says the tariff‑only approach undermines competitiveness and could accelerate deindustrialisation. The CSU parliamentary group in Bavaria, led by Klaus Holetschek, Kerstin Schreyer and Thomas Huber, criticises the draft for imposing new documentation burdens on small‑ and medium‑sized enterprises and for tying flexibility to collective contracts, urging the federal government to amend the law.

Parallel discussions in the finance ministry consider a “work‑day allowance” and a pension‑tax reform, while a wave of recent insolvencies – including the Hofbrauhaus Wolters and Leuna Polyamid – highlights the pressure on firms facing rising costs and regulatory demands.