Trade associations and representatives of leading companies in southern Germany have called for social reforms to be implemented swiftly in an urgent letter to Chancellor Friedrich Merz.
High energy costs, international competition and a changing economic environment are placing a noticeable strain on many businesses, according to the letter, which was made available to dpa on Friday.
"In this situation in particular, the specific structure of the social and economic policy framework determines whether companies can remain competitive, retain jobs and make investments at our locations," it says.
The 17 signatories of the letter include representatives from companies including Siemens AG, Audi, BMW, Porsche and the supplier ZF. The heads of the metal industry employers' associations in the states of Bavaria and Baden-Württemberg have also signed.
The letter states that the proportion of social security contributions in labour costs must be brought back down from the current 42% to closer to the 40% mark.
"We are calling for genuine structural reforms across all branches of social security that tackle costs at source and curb the steady rise in expenditure. Only if this succeeds can we reduce labour costs in Germany to a level that is competitive in an international comparison," the letter continues.
It also says working hours must become more flexible, and characterizes a maximum limit of 10 hours per day as outdated.