Nikolas Stihl, chairman of the world-leading chainsaw maker STIHL, called for Germany to increase the standard work week to 40 hours without pay raises to help the country recover from years of economic stagnation. In an opinion piece published by Euronews on September 6, Stihl argued that boosting the total volume of work in the economy is essential to preserving German prosperity and the welfare state.
The entrepreneur from Waiblingen in southern Germany stated bluntly: “The German economy has been stuck in crisis mode for years. The prerequisite for overcoming the persistent weakness in growth is better framework conditions.” His proposal comes as collective bargaining talks in the metalworking and electrical industries are set to begin in October 2026.
Germany’s industrial landscape has deteriorated sharply. Over the past eight years, the country has lost approximately 15 percent of its industrial output, according to Stihl’s analysis. Each month, Germany loses around 15,000 industrial jobs, a trend that threatens the foundation of the nation’s prosperity. STIHL itself, which generated €5.48 billion in revenue in 2025 and employed 20,246 people worldwide, remains a bellwether for German manufacturing strength.
Stihl acknowledged external pressures on German industry—U.S. tariffs, China’s aggressive industrial policy, and geopolitical tensions—but emphasized that home-grown structural problems are the primary constraint. He cited an overregulated economy, high energy costs, elevated labor costs, high taxes, and declining education and skill levels as key obstacles to competitiveness.
The federal government unveiled a 34-point reform package in July 2026 covering statutory health insurance, pensions, taxes, and the labor market. However, Stihl argued these measures do not go far enough. He called for further reforms including cutting regulatory red tape, reducing labor costs, and increasing incentives for research and development. He also proposed that sick pay be paid only from the second day of sickness and that phone-in sick notes be abolished.
Stihl’s most contentious proposal targets weekly working hours. He advocates for increasing them to 40 hours “without any pay compensation,” arguing that Germany no longer possesses the productivity advantage over key competitors that once justified high labor costs. He acknowledged the burden this places on employees but framed the debate as one about preserving jobs and keeping production in Germany rather than asking workers to sacrifice benefits.
The timing of his remarks is significant. STIHL is celebrating its 100th anniversary in 2026—the company was founded by Andreas Stihl in 1926—and Nikolas Stihl, the founder’s grandson, is using the platform to advocate for systemic economic change. He called for higher non-wage labor cost ceilings at 40 percent of gross wages and greater support for innovation in fields like artificial intelligence, robotics, biotechnology, and quantum technology.
Stihl concluded with an urgent call to action: “We must not waste any more time, because only a high-performance and competitive business location can secure prosperity and a strong welfare state. Germany has proved many times that it can reinvent itself.” His remarks reflect broader anxiety among German business leaders about the country’s industrial competitiveness and the urgency of structural reform before October’s labor negotiations.
Sources
- Euronews — Nikolas Stihl’s opinion piece calling for 40-hour work week without pay compensation, company revenue figures, industrial job losses, and details of his reform proposals
- German Federal Government — Information on the 34-point reform package announced in July 2026
- STIHL Corporate — Company’s 100th anniversary milestone and leadership information
