Mercedes CEO Criticizes High Sick Leave Rates in Germany

Ola Källenius calls for political reforms to address absenteeism and improve competitiveness in the auto industry.

Ola Källenius, CEO of Mercedes-Benz, has raised concerns about the high rate of sick leave in Germany, which he claims is more than double that of other countries where the company operates.
Källenius argues that the ease of obtaining sick notes in Germany contributes to absenteeism and calls for stricter regulations to discourage unjustified sick leave.
The Mercedes chief links high absenteeism, along with elevated labor costs and taxes, to broader challenges facing the German auto industry, including declining sales of electric vehicles.
Despite financial pressures, Mercedes denies plans to close German factories or implement large-scale layoffs, citing existing agreements protecting jobs until 2029.
The company, which reported a significant drop in profits for the third quarter of 2024, has outlined cost-cutting measures to save €5 billion by 2027.