Germany's Auto Crisis Fuels Debate Over the 35-Hour Workweek

Germany's automotive industry, long the backbone of the country's manufacturing economy, is at a crossroads. Major automakers including Volkswagen and BMW have announced restructuring plans and potential job cuts in response to declining sales and intensifying competition from Chinese electric vehicle manufacturers.

At the heart of the labor dispute is the question of whether shortening the working week could help preserve jobs or whether it would merely accelerate the sector's decline. IG Metall, Germany's powerful engineering union, has long championed the 35-hour week, arguing that work sharing could cushion the employment impact of the ongoing transition.

Employers' associations counter that reducing hours without proportionate wage cuts would further erode Germany's already diminished competitiveness. They point to Germany's higher labor costs compared to rivals in Eastern Europe and Asia as a structural challenge the sector cannot absorb additional burdens on.

The debate has spilled into the broader political arena, with the upcoming federal election making it a contentious economic policy question. Economics Minister has called for productivity-focused solutions rather than hours reduction, while the SPD has shown more sympathy for the union position.