The head of Coca-Cola Europacific Partners (CCEP) Germany, John Galvin, has advocated for the reintroduction of a no-pay “sick day” as a means of addressing high rates of employee absenteeism. In comments published by the Funke Media Group, Galvin noted a significantly higher incidence of sick leave in Germany compared to other countries where CCEP operates. “In countries with restrictions on continued wage payment, we see considerably lower sickness rates” he stated.
Galvin suggested that reinstating a mandatory unpaid first day of sick leave – a “Karenztag” – would be the simplest way to address the issue, citing Sweden as a comparative example. “Coca-Cola has a sickness rate of 3.5 percent in Sweden. In Germany, we are at 9 percent – with nearly identical working conditions. It’s obvious something isn’t working” he said, concluding that reduced absenteeism would lead to increased productivity.
The CCEP executive also described Germany’s labor costs as “very high” placing them 30 percent above the European average. While acknowledging previous years of productivity had offset these costs, Galvin indicated a recent weakening of that trend and emphasized the need for renewed productivity gains.
Looking beyond short-term solutions, Galvin also called for reforms to Germany’s statutory pension system and private retirement provision. He suggested considering models utilized in countries such as Sweden, the United States and the United Kingdom, highlighting the potential for investment generated by capital market funding of pension funds.
Addressing Germany’s changing demographics, Galvin supported extending the working lives of those who wish to continue employment. However, he also acknowledged the strength of existing German structures and organizational frameworks, noting their ability to effectively mitigate some of the challenges posed by demographic shifts.
Coca-Cola Europacific Partners is responsible for the bottling of Coca-Cola beverages. The company operates 13 production facilities nationwide and employs over 6,500 individuals in Germany.
