Thank God It’s Thursday: German Labor In The Post-Covid Age

There are very few things more sacred than the weekend. The five-day work week has been a staple of modern life since the industrial revolution. In fact, British union workers fought tooth and nail for the weekend to be standard-place in the mid 19th century. Along with establishing the weekend, labor organizing has been instrumental in ending child labor and gaining many worker benefits such as paid medical leave. Although unions have lost much of their influence since then, they seem to be making a comeback in the new decade. Financial anxiety triggered by the pandemic has sparked a revitalization in labor activity around the world. The recent push for a four-day work week by Germany’s largest union, IG Metall, is a sign of progress for workers in the years to come.

Since the 1980s and ‘90s, labor has seen a staggering decline in power and relevance. While unions have historically been very strong in Germany, membership is now struggling across the board. Dutch sociologist Jelle Visse found that even in Germany, the most industrial country in Europe, factory workers have largely abandoned unionization. This reality holds true throughout the entire continent, stemming from the growth of the mostly unorganized service industry, mergers, and the unraveling of important political alliances. With a lack of participation, many unions are too weak to negotiate fair contracts and secure benefits for their workers. In some instances, employers outright ignore industry standard agreements and avoid unions altogether. Visse writes, “At least in Germany…fewer companies are willing to sign or respect the agreement...or opted for a type of membership that does not bind them to agreements with the unions.” The erasure of organized labor has far reaching implications for working Germans who, in previous generations, would have been able to rely on a robust union to bargain for them. 

 The consequences are already visible in the 21st century. Without a formidable labor movement, corporations have been free to exploit their workers hand over fist. According to the European Central Bank, “Over the past two decades, labor productivity rose by about 30 percent in Germany, whereas the consumer wage increased by only 18 percent.” This wealth decoupling has resulted in a stratified economy where the rich get richer while the middle class disappears. In his 2009 paper, “Revisiting the German Wage Structure,” German economist Christian Dustmann concluded that de-unionization played a key role in the country’s worsening wealth inequality. Fortunately, this trend can be reversed. The innovative four-day work week offers a glimmer of hope for workers in an ever suffocating labor market.

Although the strength of labor has been considerably eroded, IG Metall is close to making the 4 day week a reality. In 2021, the German steel union won its North Rhine-Westphalia workers “a 2.3 percent wage increase, to be paid either in full or as part of a switch to a four-day week” along with a coronavirus premium check of €500. This historic victory from one of the world’s most powerful trade unions comes at a time of economic uncertainty following the COVID-19 pandemic. Now, IG Metall will be trying to bring the shortened work week to all of Germany as it negotiates with the steel industry this fall. While the idea of being paid more to work less is appealing in its own right, the four-day work week has also been linked to increased productivity and lower stress. Additionally, IG Metall has argued that the proposal could prevent layoffs in the wake of the pandemic and the ongoing transition to green electricity. Union leader Joerg Hofman told daily German newspaper Süddeutsche Zeitung that “the four-day week... could make it possible to keep industrial jobs instead of scrapping them.” 

Despite the clear benefits, some business leaders are skeptical of this new work scheme. Critics of IG Metall cite recent financial strain as reason enough to forgo the shortened week. In 2020, the director of the Confederation of German Employers’ Associations warned that a four-day work week would worsen the production shock caused by the pandemic. Similarly, the personnel chief for Mercedes-Benz, Wilfried Porth, called the change "neither appropriate nor economically viable" in the current climate. Although the change is unpopular with corporate executives, Labor Minister Hubertus Heil has been more open to the idea, calling it “an appropriate measure.” Even if the four-day week fails to become the new normal in Germany, this renewed interest in collective bargaining is promising for workers as a whole. More than anything, IG Metall is setting a global precedent for all workplaces to follow.

Since the beginnings of the industrial revolution, labor organizing has been key in addressing low wages and poor working conditions. Although the power of the union has been dwindling for the past half-century, and with it many well-paying jobs, there’s reason to be optimistic for the future. The momentum behind IG Metall’s four-day work week proves that the labor movement has some fight left. While Germany’s highly developed industrial sector provides an intriguing case study, it’s far from being alone. IG Metall’s recent success has inspired a truly global movement. Just last year, the Belgium government gave workers the right to request a four-day work week, along with a number of other generous benefits. Other countries in Europe such as France and Spain have already launched large-scale trials consisting of thousands of public and private employees. Even in the United States, the striking United Auto Workers (UAW) union is currently demanding a shorter week for its car manufacturers.  The popularity of the four-day work week marks a positive shift in the struggle for labor rights. If uninhibited, this campaign has the potential to change how everyone lives and works forever.