German Plan to Tie Longer Workweeks to Union Deals Sparks Political Firestorm
20.06.2026 - 03:34:41 | boerse-global.de
Only about half of Germany’s workforce would benefit from a controversial overhaul of the country’s working-time law, according to an internal draft from the Federal Ministry of Labour and Social Affairs. The 21-page proposal, leaked in mid-June 2026, has ignited a fierce debate between business groups, unions, and political parties.
The draft, prepared by Minister Bärbel Bas (SPD), replaces the rigid daily eight-hour cap with a weekly limit of up to 48 hours — but only if the yearly average stays within the eight-hour-per-day norm. Crucially, this flexibility is reserved for companies that operate under a collective bargaining agreement or a works council arrangement. For all other employers, the daily eight-hour ceiling remains intact, with an extension to ten hours permitted only when compensatory time off is granted.
A mandatory shift to electronic time recording is another cornerstone of the reform. Reacting to rulings from the European Court of Justice and Germany’s Federal Labour Court, the ministry wants employers to log the start, end, and duration of each workday digitally. Exceptions are possible only through collective agreements or for micro-enterprises. Trust-based working time models remain legal, provided the recording obligation is met. SPD labour expert Klose defended the move as a necessary weapon against unpaid overtime.
The draft has drawn immediate condemnation from the centre-right opposition and employer associations. CDU General Secretary Carsten Linnemann, joined by Gitta Connemann of the Mittelstandsunion, accused the coalition of violating its own governing agreement by linking flexibility to union membership. “This is a fundamental policy mistake that disadvantages small and medium-sized enterprises,” they argued. Employer President Rainer Dulger called for the draft to be withdrawn, branding it a collection of union maximalist demands. Industry groups including Gesamtmetall, the VDMA, and the Federal Association of Medium-Sized Businesses warned of excessive bureaucratic hurdles.
Unions, by contrast, applaud the retention of the eight-hour day as a basic safeguard. Bernhard Steidl of the German Federation of Trade Unions (DGB) stressed the importance of that protective barrier for workers. The proposal also includes sector-specific adjustments: bakeries would be allowed to extend Sunday work from three to five hours, and public libraries could open for up to six hours on Sundays.
The draft is currently being circulated within the ministry for internal coordination. It will then move to inter-ministerial consultation. The coalition aims to pass the reform package before the summer recess in the last week of July 2026, though the fierce political headwinds suggest the battle is far from over.
