Mercedes-Benz Board Chair Advocates for 40-Hour Workweek to Boost Competitiveness

The chairman of the supervisory board at Mercedes-Benz has called for a reassessment of standard working hours in Germany, emphasizing the need to enhance the country's international competitiveness. The proposal comes amid ongoing discussions about labor costs and productivity in the German automotive sector, particularly as the next round of collective bargaining approaches within the metal and electronics industries.

Currently, employees at many tariff-bound automotive companies, including Mercedes-Benz, work a 35-hour week, though this is not mandated by German law. The prevailing arrangement has been a long-standing result of collective agreements, but with increased global competition and rising labor costs, key industry leaders are questioning whether the standard remains viable.

The Mercedes-Benz board chair has suggested that returning to a 40-hour workweek, without an increase in pay, is both reasonable and necessary under current economic circumstances. This stance is rooted in concerns about Germany's declining productivity advantage relative to other major automotive markets. In this context, two primary options are being considered: either reducing wages or increasing working hours while maintaining current salary levels. The board chair noted that wage reductions would be impractical, making extended working hours a more acceptable alternative.

Germany's automotive sector, a cornerstone of the national economy, faces mounting pressure from overseas competitors, particularly in regions where labor costs are lower and working hours longer. This dynamic has led industry leaders to advocate for reforms aimed at preserving the sector's competitive edge. A key factor in the debate is the sustainability of the existing social and economic model, especially as Germany's population ages and the workforce shrinks in relative terms.

The proposed return to a longer workweek is also being linked to broader demographic trends. With the average age of the working population rising, the argument is that longer participation in the workforce is necessary to sustain the country's social systems. Extending both weekly working hours and overall career length is viewed as a practical measure to ensure the long-term viability of pension schemes and public finances.

Labor organizations in Germany have voiced strong opposition to changes that would increase working hours or diminish workers' rights. Unions argue that the current system provides a fair balance between economic productivity and quality of life. Despite this, employer associations continue to push for greater flexibility in labor arrangements, including reforms to the legal framework regulating working hours.

Ongoing policy debates in Germany are also addressing potential changes to the national Working Hours Act. Current legislation limits the regular working day to eight hours, with a possible extension to ten hours under specific circumstances. Proposals under consideration include shifting the legal focus from daily to weekly maximum hours, in line with European Union directives. Such reforms would potentially allow for more flexible scheduling, though they remain subject to negotiation and political compromise.

As the metal and electronics industries approach a new round of collective bargaining, the question of working hours is expected to feature prominently in discussions between employers and unions. The outcome could have far-reaching implications for the automotive sector and the broader German economy. Industry leaders maintain that adapting working time regulations is essential to maintaining Germany's status as a leading global manufacturing hub.

The debate over working hours in Germany illustrates the complex interplay between economic competitiveness, labor rights, and demographic change. While industry representatives point to the need for adaptation in the face of shifting global dynamics, labor advocates emphasize the importance of protecting established standards. The coming months are likely to see continued negotiations as all parties seek to balance these competing priorities.