Mercedes-Benz Workers Mobilize Against Unpaid 40-Hour Week and End of Remote Work as Profits Slump
Published on 07/01/2026 at 23:52 | Redaktion boerse-global.de
Germany's powerful IG Metall union has called for large-scale protests at Mercedes-Benz plants on July 3 and 4, as the automaker pushes through what workers describe as a double blow: a mandatory five-day office week and an expansion of working hours to 40 per week — without any increase in pay.
The protests are set to take place at Sindelfingen, Untertürkheim, Rastatt, Bremen, Berlin, Hamburg and Düsseldorf. The union says employees are being made to shoulder the burden of the company’s financial troubles while losing flexibility and gaining extra work.
Office mandate and longer hours
Under plans by CEO Ola Källenius, all employees would be required to work from the office five days a week, effectively ending the current mobile work arrangements. Negotiations with the works council over new remote-work guidelines have reportedly broken down.
Simultaneously, management is demanding a switch from the existing 35-hour week to a 40-hour week — compensated at the same salary level as the current shorter schedule. The union sees this as a clear demand for unpaid overtime.
Profit slide and stock decline
The cost-cutting push comes as Mercedes-Benz reported a sharp drop in earnings. For the 2025 financial year, profit fell by roughly half to 5.3 billion euros, down from 10.4 billion euros a year earlier.
The trend continued into the first quarter of 2026, with earnings sliding another 17.2 percent. The company’s stock has lost more than a quarter of its value since the start of the year.
Delayed bonus and offshoring
To preserve liquidity, Mercedes has postponed a special payment that had been planned for July. Around 90,000 workers were due to receive a so-called transformation bonus equivalent to 18.4 percent of a monthly salary. That payout will now come only in 2027.
At the same time, the company is accelerating the offshoring of administrative roles, aiming to further reduce cost structures.
A broader industry debate
The conflict at Mercedes reflects a wider struggle in German manufacturing. Labour costs in German industry averaged 45 euros per hour last year, compared with an EU average of 34.90 euros. German unit labour costs are roughly 22 percent higher than in the country’s main competitor economies.
As Mercedes pushes for longer hours and in-person attendance, other major employers like Volkswagen are planning mass job cuts and plant closures. The long-established 35-hour week is increasingly under threat across the sector.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
