The head of Coca-Cola Europacific Partners (CCEP) Germany, John Galvin, has advocated for the reintroduction of a non-paid ‘waiting day’ for sick leave. Speaking to the Funke Media Group newspapers, Galvin highlighted a noticeably higher rate of employee sick leave in Germany compared to other countries where CCEP operates. “In countries with restrictions on continued wage payments, we see significantly lower rates of absenteeism” he stated.
Galvin suggested that reinstating a waiting day – a period of unpaid leave at the beginning of a sick leave – would be the easiest way to address the issue. He cited Sweden as an example, where Coca-Cola experiences a sick leave rate of 3.5 percent, compared to 9 percent in Germany – despite, he noted, comparable working conditions. “It is clear that something is not working as efficiently as it could” he said. He concluded that reducing sick leave would lead to increased productivity.
Galvin also characterized labour costs in Germany as “very high” estimating they are 30 percent above the European average. While historically compensated for through strong productivity, he indicated that this has diminished, necessitating a renewed focus on improving output.
The CCEP executive further called for reform of both statutory pensions and private pension provision, pointing to models in Sweden, the United States and the United Kingdom. He argued these systems channel substantial funds into capital markets, driving investment and benefiting the economy.
Addressing Germany’s demographic changes, Galvin recommended allowing individuals who wish to continue working beyond the standard retirement age to do so. However, he also acknowledged the strength of Germany’s existing organizational structures and systems, suggesting they help to mitigate some of the challenges posed by these demographic shifts.
Coca-Cola Europacific Partners is the bottler of Coca-Cola beverages, operating 13 production facilities across Germany and employing over 6,500 people in the country.