The article reports on labor reform in Germany. Workers at DaimlerChrysler plants in Germany took a "day of action" on July 15th to protest against proposed wage cuts and longer working hours. Yet if the carmaker cannot reduce labour costs at its Sindelfingen plant in south-west Germany, it threatens to move production of the C-class Mercedes to Bremen or to South Africa. This is only one of many poker games being played by German firms with unions as they seek to cut labour costs. Last month Siemens got the nod from the biggest blue-collar union, IG Metall, to raise its working week from the standard 35 to an average of 40 hours at two plants near Cologne. The argument was that this would save 2,000 jobs that would otherwise shift to Hungary. Siemens can now impose similar conditions at other plants under threat. Germans work fewer hours per year than workers in any other rich country except the Netherlands and Norway, according to the OECD. A labour-market reform has just passed into law, the Hartz IV, as it is called, merges social-security payments with the unemployment-benefit system. That may sound like paper-shuffling but it is, claims Matthias Platzeck, premier of Brandenburg, "the biggest social revolution in Germany since the second world war." From January, the long-term unemployed, whose lives have been too cushy, will find the tap turned off if another household member is in work, or they have too many assets, or they are unwilling to take jobs offered. In eastern Germany, the average unemployment is 18.5% and there are areas where it is closer to 30%. But everywhere, say the polls, there is a growing readiness to be flexible to save jobs, including working longer hours.