German unions brace for clash with government over labour rights and pensions
Tensions are set to rise at this week’s DGB congress as labour leaders clash with government and employer proposals over working hours and welfare reforms. Yasmin Fahimi, newly re-elected as chair of the German Trade Union Confederation, has warned against rolling back workers’ rights and cutting pension protections. The event will also feature speeches from Labour Minister Nancy Faeser and Chancellor Friedrich Merz, whose party backs employer demands for sweeping changes. Fahimi secured another four-year term as DGB leader with 96% approval from delegates. The organisation, which represents 5.4 million workers across eight unions, is gearing up for a fight over plans to overhaul labour laws and the welfare system.
Employers are pushing for a major shift in working time rules, proposing a weekly maximum instead of the current daily eight-hour limit. Fahimi condemned these plans as 'a capitulation to employers' and compared them to conditions before 1918. She also rejected calls to raise the retirement age or reduce pension levels, warning this could trigger a deep societal conflict. On funding, Fahimi demanded higher taxes on wealth, including the return of a wealth tax and stricter inheritance tax rules. She argued these measures are necessary to secure long-term financing for social security. Meanwhile, Chancellor Merz and his CDU have aligned with business groups seeking to cut labour costs by reforming the welfare state. Labour Minister Faeser and Merz will address the congress on Tuesday, where the clash over these issues is expected to intensify.
The DGB congress has set the stage for a showdown between unions and the government over working conditions and welfare funding. Fahimi’s strong mandate and sharp criticism of employer-backed reforms signal a tough battle ahead. The outcome could shape future labour laws and social protections for millions of German workers.
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