Major labour disputes are expected to arise in Germany in 2025 as a result of fierce rivalry, economic fragility, and skyrocketing expenses, which have long been viewed as the foundation of the nation’s economic success.
According to labour leaders who collectively represent over half a million German workers at industrial behemoths Bosch, ThyssenKrupp ZF Friedrichshafen, and Volkswagen, companies are demonstrating a new level of resolve to reduce employment, shut down plants, and transfer employees overseas.
According to more than a dozen interviews with German labour groups, legislators, executives, and economists, boards are less inclined to compromise than they were during past crises, and in some cases, they have unilaterally terminated pay agreements or stopped negotiations with workers.
This is a result of the weak state of Europe’s largest economy, which has contracted for the second year and has depended chiefly on industries that require a lot of labour and energy, including chemicals and automobiles. Germany is currently among the most expensive nations in the world.
According to Reuters, this has sparked debate about whether Germany’s legally-enshrined “co-determination” principle, which ensures that employees have a significant say on the company’s supervisory boards, is becoming a liability by impeding corporate restructuring. The next German government, which will be chosen in a snap election on February 23, will prioritise finding a solution.
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