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Time over money? Germany’s largest union defends 28-hour week

Tens of thousands of German workers downed tools this week as the country's largest union ramped up its battle for the right to a 28-hour week.

Published: 11 January 2018 09:00 CET
Time over money? Germany's largest union defends 28-hour week
Employees during a warning strike in Brandenburg on Wednesday. Photo: DPA

As union leaders and employers return to the negotiating table Thursday, here's what you need to know about IG Metall's groundbreaking campaign to rethink the work-life balance – and what it could mean for the rest of the country.

What do they want?

IG Metall represents some 3.9 million workers in Germany's crucial metal and electrical engineering industries.

As in past industry-wide negotiations with employers, it is pushing for a wage hike – this time seeking a whopping six-percent increase.

But most striking in the current showdown has an emphasis on giving employees the freedom to tailor their work hours to their personal lives.

READ ALSO: These German cities offer the best work-life balance

The union wants all workers to have the option of switching from a 35- to a 28-hour week for a two-year period, with a guaranteed return to full-time work afterwards.

In certain cases – and this has been the most headline-grabbing demand – the union says employers should make up some of the salary loss that would result from clocking up fewer hours.

It wants those caring for young children or elderly relatives, for example, to receive an extra €200 a month.

And shift workers or others whose working hours can weigh on health should be entitled to an additional €750 annually, it says.

What are the arguments for a shorter week?

IG Metall says flexible working time has so far mainly benefited employers who got staff to put in longer days.

But with Europe's top economy humming and unemployment at a record-low, it believes the time is right for a radical shake-up.

“Workers aren't only workers, they have personal lives, children, old parents,” Berlin IG Metall chief Olivier Hoebel told strikers at a demonstration on Monday. “Working life can't only be about sacrifice.”

IG Metall believes its proposals would especially benefit women, large numbers of whom work part-time for family reasons and currently don't have an automatic way back to full-time employment when their situation changes.

How have employers reacted?

With a firm 'no'.

The Gesamtmetall employers' federation has predictably balked at the suggestion of paying staff extra to work less.

It has dismissed the proposals as “too costly” and “unfair” to those already in part-time work under less generous conditions.

It says introducing the compensation measure would be discriminatory and open companies up to legal action.

After two rounds of negotiations, employers have so far offered a two-percent wage increase, but no progress has been made on the 28-hour issue.

What would the impact be?

Where IG Metall goes, others tend to follow.

Europe's largest trade union was instrumental in pushing through a 35-hour working week in the 1990s, and employers across Germany are closely watching to see if the next labour revolution is around the corner.

Already the call for a shorter week has triggered heated debate about quality of life and the future of work in a world where jobs are increasingly automated.

Supporters have praised the union's proposals as “very modern” and said they could help firms hang on to their best and brightest.

But critics have countered that a reduced week could exacerbate a shortage of skilled workers, while smaller firms in particular might struggle to meet production targets.

“If it would be replicated throughout the economy, it could do serious damage,” said Holger Schmieding, chief economist at Berenberg bank .

Gesamtmetall estimates that some 1.5 million workers would be eligible for the proposed compensation if they chose the 28-hour route. IG Metall however believes the actual take-up would be far lower.

Where to go from here?

A third round of talks starts Thursday, but there's little hope of a breakthrough.

IG Metall raised the stakes this week, with tens of thousands of workers launching hours-long “warning strikes” at dozens of firms including Volkswagen, BMW and Siemens.

It has vowed to call day-long walkouts if the standoff continues and even threatened to stage the union's first nationwide, open-ended strike since 2003.

“If on Thursday we still can't see a willingness to seriously talk about these issues, the situation will escalate,” IG Metall chief for southwestern Germany, Roman Zitzelsberger, told the Handelsblatt financial daily.

For members

WORKING IN GERMANY

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

Published: 10 September 2024 16:34 CEST
Updated: 15 September 2024 08:14 CEST
Four steps to take straight away after losing your job in Germany

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

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