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Herrenknecht Urges Weaker Dismissal Rules, Shorter Sick Pay in Germany

The tunnel-boring magnate says Germany needs more labor flexibility to stay competitive.

Overview

  • Martin Herrenknecht calls for loosening dismissal protection, arguing current rules no longer fit an economy cutting industrial jobs.
  • He proposes reducing statutory sick pay from six to three weeks and abolishing the three waiting days for illness.
  • Overtime pay should be tax-free to motivate workers, he says, contending that performance must pay off more in Germany.
  • He contrasts Germany with other countries, citing lower severance in Switzerland and longer workweeks in India and China, and he criticizes what he calls a "Softie society" and heavy bureaucracy.
  • His family-owned firm employs about 5,500 people and is a global leader in tunnel-boring machines, and no official policy response is reported in the coverage.