In Berlin, concerns mount over Germany’s economic stagnation, attributed in part to low productivity growth and significant sick leave among employees. Although known for their diligent work ethic, Germans average fewer working hours weekly compared to their European neighbors. Business leaders and conservative politicians increasingly suggest that the nation’s work attitude contributes to its current economic difficulties, with Germans taking an average of over 20 sick days annually, far surpassing other EU countries.
Amid these challenges, Oliver Bäte, CEO of Allianz, provocatively labeled Germany as the “world champion for sick days”. He proposed cutting wages for the first day of sick leave, drawing inspiration from progressive models in Sweden. Historically, Germany abolished this rule in the 1970s, requiring employers to fully cover labor costs for up to six weeks of illness.
Sick leave rates in Germany have surged dramatically, with a reported 40% increase between 2021 and 2022 according to DAK, a public health insurer. Experts argue that while this spike may partially stem from updated digital record-keeping, a growing trend of increased sick days has been evident in prior years. Labor attorney Michael Fuhlrott emphasized that this high rate burdens the economy, potentially reducing GDP growth by 0.5% if sick leave were curtailed.
Though unemployment remains relatively low at around 6.4%, discussions on average working hours have surfaced, revealing Germans work just 34 hours a week—less than many European counterparts like France and Italy. Jens Spahn of the CDU/CSU criticized the current work culture, suggesting it resembles a “leisure park” with a stark contrast to hardworking nations like Switzerland.
This viewpoint has sparked backlash, particularly from trade unions and the Social Democratic Party (SPD), which defends labor rights in the upcoming elections. Labour Minister Hubertus Heil dismissed accusations of laziness, asserting that significant changes to sick pay policies would not be endorsed by the SPD. The CDU/CSU committee aims to foster economic recovery through incentives for increased productivity if elected in February.
Despite potential government shifts, introducing a Swedish-style wage policy for sick leave appears unrealistic. Adjustments to German labor law, though feasible, pose political challenges as they could affect established worker rights. Meanwhile, the Free Democrats have proposed a tax-free bonus for employees taking no sick days, suggesting a more motivational approach rather than penalizing sickness.
Germany’s economy struggles, partly due to low productivity and high sick leave rates, with workers averaging over 20 sick days annually. Allianz CEO Oliver Bäte proposed wage cuts for the first day of sick leave, a controversial suggestion reflecting broader concerns about work culture. Despite debates over working hours and employee incentives, substantial changes in labor policy remain politically fraught.
Germany faces pressing economic challenges marked by low productivity and high sick leave rates. Business leaders advocate for changes to workers’ sick day allowances, while unions and political factions clash over the implications of such proposals. Despite the call for increased working hours and productivity, significant policy shifts appear unlikely as labor rights remain a central focus of the ongoing debate.
Original Source: www.euractiv.com
