Germany Working | Germany's 35-Hour Work Week Under Pressure

Germany is confronting a difficult question over its economic competitiveness: can longer working hours help revive its struggling industrial sector? Volkswagen is at the centre of the debate, as Saxony’s state premier proposes increasing the standard working week from 35 to 40 hours to help reduce labour costs and improve competitiveness. But Germany’s powerful IG Metall union strongly opposes the idea, while Volkswagen is also grappling with overcapacity, weak demand and a shrinking European market. The debate goes beyond Volkswagen. As Germany faces growing competition from China and Eastern Europe, policymakers and industry leaders are questioning whether the country’s traditional model of work and production can keep pace with a rapidly changing global economy.