Germans fight over working hours

Dark clouds hang over Germany's economy

Germans should work longer hours and take less holiday, leaders of employers' organisations have demanded.

Hermann Franzen, head of the German retail association, said workers should give up two days of their annual six weeks of holiday, while average working hours should be extended from 36 to 40 hours a week.

Germany is experiencing a rare wave of strikes

Similar suggestions have been made by the bosses of the German Chambers of Commerce and the Small Business Association.

The tough demands come just as the government is hoping to bring together employers and trade unions for a new round of talks on job creation which is being called "alliance for jobs".

The last round of talks broke down in acrimony last year, with tensions high because of tough industrial disputes in the engineering sector and political point scoring in the run-up to general elections.

The German economy is close to recession, and the number of unemployed remains stubbornly above 4 million.

Government split

Industrial relations have not been helped by a new proposal to liberalise employment laws to make it easier for small firms to hire and fire workers.

Chancellor Schroeder is grasping for a plan to restore the economy

The plan, mooted by the government's minister for work and economics Wolfgang Clement, was immediately attacked by trade union leaders, who called his suggestions "irresponsible" and "confused".

Currently firms with more than five workers face tough regulations if they want to sack a worker.

The regulation was imposed by Chancellor Schroeder's government in 1999, shortly after it came to power.

Mr Clement now wants to revert to the original limit of 10 workers, arguing that small firms simply stop hiring once they reach the limit of five workers.

But Mr Clement has also been criticised by top politicians in his own party, the Social Democrats, who said the party should not go into the debate taking the employers' viewpoint.

'Save your job'

Employers, meanwhile, say workers should contribute more to improve the competitiveness of German companies.

"Every worker should be willing, in order to help secure his or her job, to give up three to four holidays per year," said Mario Ohoven, president of the country's Small Business Association.

"Germany can't afford to have the highest labour costs in Europe and at the same time the greatest number of holidays," he said.

Mr Franzen of the retailers' association believes that longer working hours could provide the much-needed kick-start for the Germany economy.

Trade union leaders, though, say they will have none of this.

They hope that higher wages will boost consumer demand, and so help to get Germany's economy out of its trough.