Germany: Volkswagen in the east of Germany along with its automotive subcontractors finally set to lower weekly working hours from 38 to 35, matching those in the west

Following extensive lengthy talks with the IG Metall trade union, car manufacturer Volkswagen, Germany’s second largest automotive subcontractor ZF, and Faurecia subsidiary SAS-Automotive, have announced they are going to commit to equalizing working hours at their facilities right across the country (encompassing both former West Germany and the German Democratic Republic). For IG Metall, the ‘Working Time Wall’ separating the east and west of the country is finally breaking down! East German employees currently continue to work 38 hours a week for the same pay as their colleagues in the West, who only work 35 hours a week. Equalising working time has been a specific demand from the East at every collective bargaining negotiation in the metal industry for 30 years. This time round the union was determined not to compromise. However, even if the ‘Working Time Wall’ wobbles, will it really fall? This question arises because alongside large employers such as Volkswagen, a majority of small and medium-sized companies in the east are refusing to reduce working hours without lowering wages accordingly. So the struggle continues. The social partners have given themselves until the end of June to secure a satisfactory outcome. At Volkswagen, it has been announced that the 3-hour reduction in the working week will be spread over the period from 2022 to 2027, and that significant productivity gains will be required to neutralize the negative financial effect.