Four decades after German metalworkers secured a 35-hour week following a 1984 strike, prominent industrial employers including Mercedes-Benz and toolmaker Stihl are reviving the debate over longer working hours. Prominent executives argue that high labour costs are eroding Germany's competitiveness. Martin Brudermüller, chair of Mercedes-Benz Group AG's supervisory board, told Handelsblatt the country had lost its productivity advantage over important competitors.

Labour costs in Germany are among the highest in the EU, with an hour of manufacturing work costing €49.50, 47 per cent more than the EU average of €33.70 and three times as much as in Hungary. While employees remain productive, unit labour costs measuring output have risen significantly faster since 2023. The calls to return to a 40-hour week come before industrial unions start their latest pay negotiations in October.

The 35-hour week was introduced gradually following a 1984 dispute that saw tens of thousands of metalworkers stage a seven-week strike. Today, 35 hours a week is the standard for about a fifth of German employees, concentrated in automotive, engineering, iron and steel. Across all sectors, the average working week stands at 37.8 hours.

German manufacturing output has fallen more than 15 per cent since late 2017, hit by energy price shocks and intensifying competition from China and the shift towards electric vehicles. Marcus Berret of Roland Berger warns that if current trends continue, employment in German manufacturing could fall below 5 million, from the current 6.5 million.