Work requires increased effort and extended hours, as stated by Reiche.
In the heart of Germany's political landscape, a contentious debate has emerged over proposals to extend working hours and the working life, as a response to demographic changes and economic challenges.
At the forefront of this debate is Economy Minister Katharina Reiche (CDU), who recently emphasised the necessity for Germans to work longer and harder due to increasing life expectancy. She highlighted that the average annual working hours in Germany (1,340) are significantly lower than in the U.S. (1,800 hours).
Reiche's stance is based on the belief that the current combination of non-wage labor costs, taxes, and levies make labor uncompetitive, and that reforms including longer working hours and potentially raising the retirement age are essential for the long-term sustainability of social security systems. However, her calls for change have not been universally welcomed.
The coalition agreement does include some labor law priorities, such as time recording and collective bargaining. Yet, Reiche argues that these reforms are insufficient for the long-term sustainability of the social security systems, which she claims are overloaded.
This stance has drawn criticism from worker representatives and within the CDU’s social wing. Christian Bäumler, deputy chairman of the Christian Democratic Employees’ Association (CDA), has criticised Reiche as an "outsider" and claimed that her statements had no basis in the coalition agreement with the Social Democrats.
The German Trade Union Confederation (DGB) has also expressed concern, warning against raising the retirement age. DGB board member Anja Piel suggested that societal tasks like the mother's pension should be paid from tax money, not from the pension fund. She advocated for financing pensions by income-side contributions and tax revenue, rather than extending working periods for individuals.
The CDU politician's remarks have not gone unchallenged within her own party. The SoVD chairwoman, Michaela Engelmeier, has criticised Reiche's suggestions, fearing an increase in the retirement age through the back door. Instead, she proposed an employment insurance that includes civil servants and members of parliament as a means to stabilise the pension system.
In summary, the coalition agreement emphasises some labor reforms, but Economy Minister Reiche pushes for significant increases in working hours and a longer working life to cope with demographic realities. This stance faces opposition from labor unions and a more socially minded faction within the CDU, which resists raising the retirement age and stresses better pension financing mechanisms. The debate continues, with the future of Germany's working culture at its heart.
- Despite the coalition agreement outlining some labor law priorities, there is a contentious debate regarding prolonging working hours and extending the working life, a proposition advocated by Economy Minister Katharina Reiche, due to demographic changes and economic challenges.
- The German Trade Union Confederation (DGB) and worker representatives have expressed concern over the potential increase in the retirement age, suggesting that pension systems could be financed more efficiently through income-side contributions and tax revenue, rather than extending working periods for individuals.
