Germany Cuts Back on Leisure Time

There is a misconception about Germany that deserves correction. The country is not full of automatons feverishly working around the clock to find better ways of making things more efficiently. In fact, the Germans have proven to be the great relaxers of Europe. A worker in Germany gets 24 paid vacation days, plus as many as 13 religious holidays. Only the French get more, with 30 vacation days and 11 public holidays. However, last week, the sound of businessmen taking the punch bowl away echoed from Munich to Kiel.

DaimlerChrysler cut a deal at the end of last week with its unions that may set the trend for worker management relations in Germany, and which in turn, could change the power relationships in the western world. In exchange for guaranteeing 6,000 jobs that might have moved to South Africa and elsewhere in Germany (the depressed former communist parts), the unions will give up wage increases and work more hours. Management will accept a token 10% salary cut to pretend everyone is in this together. Chancellor Gerhard Schroeder called it a "victory for common sense." Indeed?

Germany, like the rest of Europe, has had rather sluggish economic growth in the last few years. This year, the German economy will grow at about 1.8% according to the Bundesbank. That isn't really great, but it isn't about which to grumble. Especially when one considers that German population growth is at neutral. Were in not for immigration, the population of Germany would be decreasing. So, what precisely is the point of working more to increase profits more than last year's?

If the economy were to stagnate for ten years while the population shrunk 10%, that would mean the average German got richer. That is precisely what is going on at present. There is mild growth economically, spread among a constant number of people. Nations that need 5% economic growth have 4% population growth. Germany is a rich nation that doesn't need more.

However, if the workers in Germany are going to work more for relatively less time off, and little extra money, they just might start demanding more in the way of political influence. And there is the eastern question to consider. If "New Europe" is faced with a Germany that is more demanding of its own people, what does Poland, the Czech Republic and the rest get out of the relationship? The jobs that Germany keeps are jobs that don't go to the former Soviet bloc -- preventing growth where it is truly needed.

DaimlerChrysler does need extra cash, most businesses do. But the change wrought at the Mercedes plant may have repercussions far beyond the town of Sindelfingen. More work, longer hours, no extra pay to keep a few jobs that could be done better in poorer parts of Europe hardly seems like a victory for sense, common or otherwise.


© Copyright 2004 by The Kensington Review, J. Myhre, Editor. No part of this publication may be reproduced without written consent.


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