Chancellor Friedrich Merz’s Reform Pitch Meets Union Hostility at DGB Congress

On 12 May 2026 Chancellor Friedrich Merz addressed the German Trade Union Confederation (DGB) in Berlin, urging the nation to “pull itself together” and to solve long-standing structural problems. The half-hour speech was repeatedly met with whistles, boos and thumbs-down signs.

Jeers ring out as Merz tells unions Germany must pull itself together

Merz assumed office a year ago and has seen his popularity fall. His centre-right CDU/CSU coalition relies on the Social Democratic Party (SPD). Earlier this year he pledged an “autumn of reforms” to curb welfare spending, but progress has been slow; a health-insurance reform was secured in April after SPD resistance.

German trade unions give Merz's reform push a frosty reception

Key participants were Chancellor Friedrich Merz (CDU/CSU), Vice-Chancellor Lars Klingbeil (SPD), DGB chair Yasmin Fahimi, and Labour Minister Bärbel Bas, who is expected to attend the congress.

Merz booed by trade unions - dispute over pension reform escalates

Germany’s workforce is the oldest in the EU, with a quarter of employees aged 55-64 (Feb 2026). After two years of recession, growth resumed at the end of 2025 but is forecast at just 0.5 % for 2026. Recovery is vulnerable to an energy shock from the war with Iran and new U.S. tariffs on carmakers.

Jeers ring out as Merz tells unions Germany must pull itself together

Merz described reforms as a demographic and mathematical necessity, warning that high costs and bureaucracy threaten jobs and future prosperity. He pledged pension reform—dubbed “the hardest plank”—by late summer, called for greater private investment in retirement funding, and stressed that the reforms should be viewed as an opportunity rather than a threat. He affirmed no statutory-pension cuts are planned.

Jeers ring out as Merz tells unions Germany must pull itself together

DGB chair Yasmin Fahimi warned that any reform must ensure a “fair distribution of the burden” and rejected proposals to relax working-time rules. Union delegates feared reforms could shift costs onto workers, describing a “one-sided burden” and opposing a return to pre-1918 working-hour regulations. While Merz insists no pension cuts are contemplated, unions continue to perceive the proposals as a possible reduction in protective rights; legislative texts have not yet been published.

Merz booed by trade unions - dispute over pension reform escalates

• “Germany must therefore pull itself together. Germany must tackle the structural problems that we have been putting off for many years, problems that have consequently grown steadily larger. You know it, we all know it.” — Friedrich Merz, Chancellor

Reuters

• “These reform projects are not a threat; they are a great opportunity,” — Friedrich Merz, Chancellor

Jeers ring out as Merz tells unions Germany must pull itself together

• “We have simply failed to modernize our country,” — Friedrich Merz, Chancellor

Merz booed by trade unions - dispute over pension reform escalates

• “fair distribution of the burden” — Yasmin Fahimi, DGB Chairwoman

Jeers ring out as Merz tells unions Germany must pull itself together

On 12 May, Merz, Klingbeil and Bas will meet CDU/CSU and SPD leaders in a coalition committee to finalize the reform roadmap, discuss the budget and address rising energy costs. The government aims to present pension legislation by late summer, pending parliamentary approval.

Merz booed by trade unions - dispute over pension reform escalates