Employers push for longer working hours in metal industry amid push for cost cuts and stable production
Economy / Finance

Employers push for longer working hours in metal industry amid push for cost cuts and stable production

Ahead of major wage negotiations for the metal and electrical industries, employers are urging IG Metall not to rule out discussions about longer working hours. Peter Sebastian Krause, chairman of the employer association Südwestmetall, told the “Frankfurter Allgemeine Zeitung” that cost reductions are necessary to stabilize production locations, adding that longer hours should not be considered off-limits.

Currently, automotive manufacturer Mercedes is demanding longer hours from its employees and is considering relocating production to Hungary if these demands are not met. This uncertainty complicates the strategic planning for the upcoming collective bargaining round and the overall employer negotiating stance. Meanwhile, IG Metall plans to adopt its wage demands on Wednesday, staunchly opposing any softening of the 35-hour week. The metal and electrical industry-which includes the struggling auto sector and other fields like machine building-employs 3.7 million people nationwide.

Krause, who leads employer negotiations in the key region of Baden-Württemberg, is not advocating for a blanket abandonment of the 35-hour week. However, he argues that unions and employers must create “solution spaces” within their contracts, allowing companies to cut costs where necessary-especially if investment in German manufacturing is otherwise unfeasible. Furthermore, he suggested that there might be situations where a path utilizing longer working hours, without corresponding wage cuts, could be the less painful option even for employees.

At the same time, the Südwestmetall chairman sees limited scope for wage increases. Krause noted that there is a core conflict: an inflation compensation measure may not be easily compatible with stabilizing jobs and production structures.