Full Breakdown
German Automakers Push to End 35-Hour Workweek Amid Deep Industry Crisis
By Drooid · · How we work
Proposed Shift to a 40-Hour Week
German car manufacturers are urging a move from the long-standing 35-hour workweek to a 40-hour schedule without additional pay. Executives argue that extending weekly hours would cut personnel costs by roughly 13 % and help lower the average labor cost of €2,882 ($3,307) per vehicle—far above Japan’s $769 and China’s $597, according to a report by the consulting firm Oliver Wyman. The proposal is presented as a measure to restore competitiveness as the sector confronts high manufacturing expenses, punitive U.S. tariffs and a costly transition to electric vehicles.
Industry Crisis and Job Reductions
The German automotive sector is shedding jobs faster than any other industry in the country. Employment fell from about 830,000 workers in 2018 to under 700,000 today, and Ferdinand Dudenhöffer of the Center for Automotive Research projects a workforce of roughly 500,000 by 2030. Volkswagen plans to cut about 15 % of its global staff—approximately 100,000 jobs—by the decade’s end, while BMW intends to eliminate up to 8,000 positions (about 5 % of its workforce) by 2027. Tier-one suppliers such as Bosch and ZF Friedrichshafen have also announced thousands of redundancies.
Official Perspectives
Industry analysts stress that longer hours alone will not solve structural challenges. Stefan Bratzel, head of the Center of Automotive Management (CAM), warned that “working five hours more per week alone will not win the technological race against China.” He added that “German manufacturers must be at least as innovative and high-performing in technological terms as they are expensive by international standards.” Dudenhöffer echoed the need for broader reforms, stating that Germany must improve energy, tax, bureaucracy and infrastructure conditions to remain a viable location for automotive production.
Union Opposition
The proposal has met fierce resistance from labour representatives. Christiane Benner, head of IG Metall, noted that workers have already accepted wage cuts and other concessions worth several billion euros, yet are now being asked for more hours. The union argues that weak demand and under-utilised factories, not a shortage of labour hours, drive the crisis, and it announced demonstrations at more than 200 locations nationwide on September 21 to oppose the plan.
Verbatim Quotes
- “Ultimately, this raises the question of how the burdens of the current transformation are to be distributed between companies and employees,” — Stefan Bratzel.
- “Working five hours more per week alone will not win the technological race against China,” — Stefan Bratzel.
- “German manufacturers must be at least as innovative and high-performing in technological terms as they are expensive by international standards,” — Stefan Bratzel.