Mercedes Chairman Calls for Longer Working Hours in Germany, Warns of Rising Costs

Martin Brudermüller, Chairman of the Supervisory Board at German automaker Mercedes-Benz, has called for a serious discussion on restructuring labor costs in Germany, arguing that a return to a 40-hour work week is essential to maintain the country's industrial competitiveness. In an interview with the German business daily Handelsblatt, Brudermüller emphasized the urgency of the situation, stating: "We should seriously strive to return to a 40-hour work week."

Competitive Pressure on German Automotive Industry

The comments come at a time when the German automotive industry faces mounting competitive pressure, particularly from Asian rivals. The current 35-hour work week is standard in companies bound by collective bargaining agreements in the sector, including Mercedes-Benz, although it is not mandated by law. Brudermüller warned that labor costs in Germany have become excessively high by international standards, adding: "We no longer enjoy productivity advantages over our main competitors."

Only Two Options Available

The former CEO of German chemical giant BASF outlined the stark choices facing the industry: "Either wages must be cut, or people must work longer hours for the same pay." Brudermüller dismissed wage cuts as unrealistic, leaving increased working hours as the only viable path forward. A new round of collective bargaining negotiations is scheduled to begin later this year in the metal and electrical industries, which include automotive manufacturing, setting the stage for heated discussions.

Extending the Retirement Age

Brudermüller also addressed the issue of retirement age, arguing that economic logic demands an extension of working years given Germany's aging population. He stressed that the German system "cannot be financed without a longer working life," and added that continued employment later in life also contributes to maintaining health and vitality. "Work also gives people structure in their lives, social participation, and meaning," he concluded.