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German industry debate over working hour reforms

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2026-09-27 13:06 UTC → 2026-09-28 11:42 UTC · added ~~removed~~

The debate over modernizing German working hour regulations has intensified, with a growing focus on the economic sustainability of the current 35-hour work week. Industrial leaders from Mercedes-Benz and Stihl continue to advocate for a return to a 40-hour week without increasing monthly salaries to combat high labor costs and declining production. Recent data highlights the cost disparity, noting that German manufacturing labor costs average approximately 49.50 euros per hour, significantly exceeding the EU average of 33.70 euros. This pressure is compounded by uneven industrial demand; while transport sector orders rose by 2.5 percent in July, automotive orders fell by 12.5 percent and machinery saw an 8.4 percent decline. Automotive expert Ferdinand Dudenhöffer has criticized the 35-hour standard, warning that such “privileges” are unsustainable for global competitiveness and could lead to industry and job losses. Within Mercedes-Benz, the management board has communicated the desire to return to a 40-hour week to reduce costs. Production Board Member Michael Schiebe noted that two German plants could face closure if costs are not addressed, although the stated objective remains the maintenance of all current locations. Dudenhöffer observed that such closures often manifest through gradual downsizing rather than immediate shutdowns. Mercedes-Benz has further specified that if costs are not reduced, the company may be forced to close one assembly plant and one powertrain plant in Germany. To address this, management is seeking a new competitiveness agreement with labor representatives, proposing an increase from 35 to 38 or 40 weekly hours to compete with international rivals, particularly from China. Separately, production at the Sindelfingen Factory 56 was temporarily halted due to component shortages, impacting the manufacturing of high-end models such as the S-Class, Maybach, and EQS.

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