The Workers Rights 
The car industry in Germany has sparked a debate about working hours as the manufacturers are looking for ways of cutting costs and improving competitiveness. Car makers and industry representatives have been pushing to extend the normal 35-hour working week to 40 hours without a corresponding increase in pay, a move that would effectively bring down the labour cost of every hour worked.
The proposal follows pressure on Volkswagen, Mercedes-Benz, BMW and big suppliers from weaker demand, high operating costs and tougher international competition. The problems in the industry have already led to restructuring programs, production cuts and huge employment uncertainties, and working-time arrangements have therefore become a key issue in negotiations between the employer side and labour representatives.
German Industry Is Facing High Costs And Global Competition
The German car industry is operating in a challenging international environment, with high production costs and increasing competition from Chinese carmakers. The shift to electric vehicles has also changed the competitive landscape, with European manufacturers under pressure from companies that have built strong positions in battery technology, software and cheaper EV production.
Volkswagen has become the poster child for pressures facing the sector. Volkswagen has been preparing a major restructuring program that will include significant job cuts and potential changes to several German production sites, Reuters reported. It also reduced its 2026 profit margin forecast to around 1%, highlighting the level of financial pressure on the group.
Volkswagen Restructuring Puts More Pressure On Labour Talks
Volkswagen’s plans to restructure have made the debate over working hours more urgent. Reuters reported that the company has spent a lot of resources on reducing the number of jobs and possible changes in the way factories are organised, with production at several German plants likely to undergo long-term changes. The restructuring comes amid competition from China, international tariffs and overcapacity.
The company has also faced pressure over the scale of potential job cuts. Volkswagen is trying to cut costs and streamline operations, with recent reports pointing to tens of thousands more jobs at risk. The wider Volkswagen group faces financial difficulties which have been thrown into sharp relief by a separate profit warning, particularly for Porsche.
IG Metall Rejects Longer Hours As The Main Remedy
Germany’s powerful IG Metall union has resisted attempts to weaken the 35-hour work week. The union has said the present crisis cannot be solved just by asking workers to work longer hours, especially at a time when the production capacity is already stretched, and the demand is still uneven.
On 21 September, IG Metall organised nationwide actions at the locations of the automotive industry. Workers of manufacturers and suppliers protested against job cuts and possible closures of sites. The union’s campaign was for investment, forward-looking products and more support for German production, including protection of the 35-hour working week.
Job Cuts Add Fuel To The Working Hours Debate
The debate over the 35-hour week has become especially sensitive as job cuts are already taking place in the automotive industry. IG Metall says tens of thousands of employees at manufacturers, suppliers and development companies have already lost their jobs, and many more are still worried about the future of their workplaces.
Volkswagen’s restructuring has only intensified those fears, with possible plant closures and deep job cuts unsettling industrial areas. The issue goes beyond Volkswagen, since suppliers rely heavily on production at big manufacturers, so cuts at major automakers can affect jobs across regional manufacturing networks.
Changes In Competitive Pressure On China’s Auto Industry Growth
German industry is now in trouble, and one of the main reasons is competition from China. Chinese producers are making inroads into electric vehicles and increasingly competing on price, tech and manufacturing efficiency with established European marques.
Volkswagen has recently been hit by weaker performance in China, as well as rising Asian competition in European markets. Reuters reported that Volkswagen’s latest restructuring considerations are partly connected with the changing competitive environment and the need to respond to excess capacity and international market pressures.
German Workers Battle Plant Closures
The mass demonstrations throughout the country on 21 September showed the concern of car workers. IG Metall said more than 100,000 employees were expected to be involved in actions at automotive manufacturing sites, including workers linked to major manufacturers and suppliers.
The protests were held in a number of major industrial centres and included workers at Volkswagen, BMW, Mercedes-Benz and suppliers. The protest was focused on employment security, investment and the future of German production. The protection of the 35-hour week became one of the union’s prominent demands.
A Broader Test Of Germany’s Industrial Model
The 35-hour strike is part of a wider challenge to Germany’s industrial model. The car industry has traditionally been a mix of highly skilled jobs, collective bargaining and sophisticated manufacturing. German manufacturers have carved strong positions in global markets with premium cars and engineering expertise.
That model is now under attack from the rapid development of electric vehicles, software-led automotive technology, changing consumer demand and new competitors. At the same time, high energy and labour costs have put more pressure on companies running production facilities in Germany.
The Debate On The 35-Hour Week Is Still Linked With Competitiveness
The future of the 35-hour week is now bound up with the broader reorganisation of Germany’s car industry. Working-time arrangements have been put on the agenda by cost-cutting employers. IG Metall has insisted longer hours should not be a substitute for investment and industrial strategy.
The pressure right now is not due to one weakness but to a combination of factors. Volkswagen’s restructuring, declining profitability, competition from Chinese manufacturers, tariffs, excess capacity and the shift to electric vehicles have all conspired to put more pressure on German production.
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