Labor union IG Metall retracts push for four-day work week amidst economic slump - Union IG Metall shifts focus to advocate for a four-day workweek due to a workforce’s productivity decline.
In the face of an economic downturn, IG Metall, a prominent German labor union, has decided to withdraw its demand for a four-day workweek with full pay. Speaking to Bild newspaper, union head Christiane Benner explained that many companies are feeling the strain of the economic situation, with employers themselves shortening work hours at the expense of employees.
Benner urged the new federal government to boost investments in the German economic landscape and provide relief to employees. She called for swift action from the political realm to support economic stability and company loyalty, emphasizing the need for quick, effective solutions.
According to Holger Schäfer, labor market expert at the Institute of the German Economy (IW), Germany isn't leveraging its full labor potential. Schäfer suggested potential measures to fully utilize the country's workforce, such as expanding childcare services, reducing tax and social security burdens, abolishing a public holiday, and raising the retirement age to 70, as in Denmark. Schäfer emphasized that it isn't due to laziness but rather unattractiveness that makes working overtime unappealing, as a large portion of additional income goes to the state or social security.
Germany's Federal Chancellor, Friedrich Merz (CDU), has previously advocated for increasing work hours, stating that a four-day workweek is unsustainable for prosperity. Meanwhile, the CDU General Secretary, Carsten Linnemann, suggested that the discourse around work-life balance has shifted toward a "life-life balance," indicating a need to reevaluate work priorities. SPD parliamentary vice-president Dagmar Schmidt countered the accusations of laziness by calling for increased participation from high incomes in the common good, both in taxes and social security contributions.
In economic downturns, both unions and economic institutions often seek compromises that offer benefits to both workers and employers while ensuring economic stability. These compromises could involve adjustments to work schedules, overtime policies, or other benefits to navigate challenging economic conditions effectively.
Vocational training could be prioritized more in EC countries to build a more flexible and adaptable workforce, providing relief to businesses navigating economic strains. To boost this investment, financial support from the government could be crucial in offering affordable and efficient vocational training programs.
