33,000 Mercedes Workers Protest as German Coalition Pushes 13-Hour Shifts and Stricter Sick Leave

A massive protest rocked Mercedes-Benz on 3 July, with roughly 33,000 employees demonstrating against plans to impose a 40-hour week without extra pay. Company officials put the turnout at about 16,000. The demonstration is the most visible flashpoint in a broader confrontation over the German government's sweeping labour-market reform package—34 measures that would effectively scrap the eight-hour day and tighten rules on sick leave, while also expanding Sunday work for bakeries and libraries.

At the core of the proposed changes is the de facto abolition of daily maximum working hours. Instead, only a weekly ceiling would apply, meaning shifts of up to 13 hours could become legal. Proponents argue that companies badly need this flexibility. Worker representatives call it a recipe for exploitation and burnout.

Sick-Leave Overhaul Stirs Backlash

The sick-leave proposals have generated the sharpest controversy. The coalition wants employees to present a doctor's note from the first day of illness—and to scrap the telephone-based sick note introduced during the pandemic. SPD leader Lars Klingbeil urged a pragmatic approach in early July, warning that the new rule should not force seriously ill people to drag themselves to a doctor on day one. He said company- and collective-agreement-specific exceptions should remain possible.

Labour lawyers question whether the changes will have any effect. The reform is partly justified by OECD data showing Germany ranks seventh globally for lost working time, with a 6.8 percent rate.

Sunday Bakeries and Libraries Get the Green Light

From 1 January 2027, bakeries will be allowed to operate for eight hours on Sundays, up from the current three. The German Bakers' Association welcomed the alignment with other food-service businesses, though shop-opening hours will stay under state control. Libraries, too, gain extra Sunday access—up to six hours.

Tax changes accompany the package: the flat-rate tax on minijobs will rise from 2 to 5 percent. Yet the core working-time reform is largely deferred; coalition partners still need to thrash out an agreement.

Industrial Unrest Spreads

The economic squeeze is intensifying workplace conflicts. Bosch's works council chief Frank Sell called on 5 July for a taskforce to manage the sector's transition in a socially acceptable way. BMW has announced plans to cut up to 5,000 positions, and Volkswagen is preparing radical cost-cutting measures. The IG Metall union has warned of a "hot summer" ahead, mobilising against job cuts and longer hours.

Retail Strike and Bundeswehr Obligations Add Pressure

Meanwhile, the retail sector's wage dispute escalated. Tens of thousands walked out on 3 July. The ver.di union is demanding a 7 percent pay rise; the HDE employers' association has offered 3.5 percent over two years. Real wages rose 1.8 percent in the first quarter of 2026, piling extra pressure on negotiators.

Employers also face new obligations from a planned Bundeswehr law. Reservists could be called up for up to 12 weeks per year (maximum 12 months total) without the employer's consent. Companies must be given eight weeks' notice. The military covers the net pay difference, but the temporary loss of skilled workers poses major organisational challenges for businesses.

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