German Government Ties Work-Hour Flexibility to Collective Bargaining, Sparking Coalition Clash
20.06.2026 - 10:25:53 | boerse-global.de
A draft reform of Germany’s working-hours law has ignited a bitter row inside the ruling coalition after the Labour Ministry proposed granting greater flexibility only to companies that are bound by collective wage agreements. The plan, drawn up by Labour Minister Bärbel Bas (SPD), keeps the eight-hour day as the legal default but allows a weekly rather than daily cap on hours — up to an average of 48 hours per week over the year.
Yet that flexibility comes with a catch. Only businesses with a collective bargaining agreement or a corresponding works council arrangement qualify. For the rest of the economy, existing rules stay unchanged. Ministry estimates suggest roughly half of all employees would benefit from the new option, leaving the non-unionised Mittelstand entirely out.
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Sunday opening for libraries and bakeries
The document also carves out sector-specific exemptions. Public libraries would be permitted to open for up to six hours on Sundays and public holidays, while bakeries and confectioners could operate for up to five hours on those days.
Heavy criticism from the opposition and business lobbies
CDU General Secretary Carsten Linnemann has flatly rejected the draft, arguing the coalition agreement promised flexibility for all workers without forcing companies into collective bargaining. The chairwoman of the Mittelstand union (MIT), Gitta Connemann, together with social-policy spokesman Marc Biadacz, accused the minister of breaking the coalition pact.
Employers’ President Rainer Dulger labelled the proposal an “imposition” and demanded its immediate withdrawal. The VDMA engineering association, the German Confederation of Skilled Trades (Zentralverband des Deutschen Handwerks), and Die Familienunternehmer all warned that small and medium-sized enterprises would be put at a disadvantage. Marie-Christine Ostermann, president of Die Familienunternehmer, summed it up: “More bureaucracy for everyone, but flexibility only for a few.”
Mandatory electronic timekeeping on the way
Another flashpoint is the requirement for compulsory electronic recording of working hours. The ministry says it is implementing rulings by the European Court of Justice and Germany’s Federal Labour Court. Employers must digitally document the start, end, and duration of each employee’s daily work. Only micro-enterprises with fewer than ten staff are exempt; smaller employers will receive longer transition periods.
The ministry claims the reform would save companies roughly €168.6 million a year — a figure business associations dismiss as unrealistic given the new administrative burden.
Countdown to the coalition committee showdown
The Labour Ministry describes the draft as an internal working version that has yet to be formally coordinated. The SPD defends the plan. Politicians such as Jan Dieren emphasise that the reform simply implements legal necessities and is not a pet project. Trade unions back the retention of the eight-hour day with their campaign “Mit Macht für die 8”.
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The coalition committee, scheduled for 1 July 2026, is expected to bring clarity. The proposal will be discussed as part of a broader reform package. An agreement before the summer parliamentary break is considered possible — but far from guaranteed.
