German Industrial Leaders Push for 40-Hour Workweek Without Extra Pay
Berlin, Tuesday, 8 September 2026.
To save Germany’s struggling industrial sector, STIHL’s chairman urges a return to a 40-hour workweek without extra pay, arguing that current productivity losses threaten the nation’s prosperity.
Escalating Industrial Decline and Job Losses
The call for labor reform emerges amidst stark data regarding Germany’s industrial contraction. Dr. Nikolas Stihl reports that the nation has lost approximately 15% of its industrial output over the past eight years, a trend that threatens the foundation of the country’s economic model [1][2][3]. Furthermore, the labor market is shrinking rapidly, with Germany losing around 15,000 industrial jobs every month [1][2][3]. Over the course of a single year, this monthly rate equates to 180000 jobs lost, compounding the structural weakness facing the manufacturing sector [GPT]. This erosion of industrial capacity is cited as a primary driver for the urgent need to adjust working hour standards to maintain competitiveness against global rivals [2].
Proposed Labor Reforms and Bargaining Timeline
Central to the proposed solution is a return to a 40-hour workweek within the metal and electrical industries, replacing the current 35-hour standard without additional pay compensation [2]. This proposal is timed critically ahead of the German metal and electrical industries’ collective bargaining round, which is scheduled to open in October 2026 [2]. Dr. Stihl argues that the historical productivity advantage that previously justified shorter working hours has eroded, necessitating longer hours to preserve production volumes and domestic employment [2]. Similar sentiments have been echoed by other industrial leaders, including Mercedes-Benz supervisory board chair Martin Brudermüller, who advocated for a return to a 40-hour week earlier in the summer of 2026 [2].
Government Reforms and Economic Outlook
Despite legislative efforts, the current business climate remains challenging for manufacturers. In July 2026, the German federal government introduced reforms concerning statutory health insurance, pensions, taxation, and the labor market, yet these measures are deemed insufficient to resolve the structural crisis [3]. Dr. Stihl emphasizes that future economic recovery requires increasing the total volume of working hours, reducing bureaucracy, and lowering labor costs to stimulate investment [3]. He warns that without 进一步 reforms to improve framework conditions, the governing coalition and social partners risk failing their responsibility toward Germany’s economic stability [1][3]. The outcome of the upcoming bargaining round in October 2026 will be a key indicator of whether these labor market adjustments will be adopted [2].