Arab Today, arab today battle in germany to water down minimum wage
Last Updated : GMT 06:58:51
Arab Today, arab today
Arab Today, arab today

Battle in Germany to water down minimum wage

Arab Today, arab today

Arab Today, arab today Battle in Germany to water down minimum wage

Berlin - AFP

As Germany's government gets down to business on its election pledge for a national minimum wage, fierce lobbying is also under way to limit any such measure as much as possible. A fixed minimum wage was the carrot which conservative Chancellor Angela Merkel dangled in front of centre-left Social Democrats (SPD) to woo them into a coalition that would win her a third term in power. During her first two terms, Merkel's conservatives had always favoured separate pay deals by industrial sector and region, arguing that a national minimum wage would harm many small and medium-sized businesses and could force them to lay off workers. But the SPD was clear: it would only enter into a power-sharing deal if the conservatives agreed to the introduction of a fixed minimum wage of 8.50 euros ($11.80) per hour to help Germany's growing army of working poor. It was a proposal that went against the conservatives' deeply ingrained belief that wages should ultimately be set by the markets. So, while Labour Minister Andrea Nahles (SPD) and her team are now working flat out to draft legislation by next month, critics are pulling out all stops to limit what they see as the negative impact on the economy. Given the popularity of a minimum wage among voters -- more than 80 percent favoured it in polls in the run-up to the September election -- the opponents no long paint the doomsday scenarios regularly evoked in the past. Nevertheless, a minimum wage "will be a real brake on the labour market," said the head of the BDA employers' federation, Ingo Kramer. He argued that such a restriction would price out of the market "the most vulnerable, such as the long-term unemployed or those who have never worked before". - Who should be exempt? - To placate hardcore opponents, the formulation adopted in the coalition government's programme left the door open to a number of exceptions, as well as for a transition period until 2017. Different employers' federations are looking to exempt apprenticeships and trainees from the minimum wage mechanism. And there are also suggestions that job-starters with no qualifications, retired people looking to top up their pensions with mini-jobs, and seasonal workers should be exempted. Another moot point for employers is that a minimum wage will apply across the entire country, even though 25 years after the fall of the Berlin Wall average wages in the formerly communist eastern states are still below those in the west. The DIW economic think-tank estimates that on January 1, 2015 when the minimum wage comes into effect, around 4.5 million people in Germany will stand to benefit. But if the exceptions currently under discussion come into effect, as many as 1.5 million of them would be left out, said DIW economist Karl Brenke. He believed that setting too many exemptions "would be fatal". "It would lead to major distortions" on the labour market, particularly for low-qualified workers in the services sector, the expert argued. Why, for example, would an employer hire someone at 8.50 euros per hour when a pensioner could do the same work for much less? As is often the case in Germany, the battle is also being waged on legal grounds, with supporters and opponents of the minimum wage arguing over whether any exceptions would conform to the principle of equality enshrined in the German constitution. Unsurprisingly, a study commissioned by the Bavarian industry federation and Heidelberg University concluded this week that all the exemptions posited were acceptable. But "dignity doesn't recognise exemptions," the DGB trade union federation retorted and called for a fixed national minimum wage for everyone.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today battle in germany to water down minimum wage Arab Today, arab today battle in germany to water down minimum wage

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today battle in germany to water down minimum wage Arab Today, arab today battle in germany to water down minimum wage

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
View News in Arabic - Business: قضايا ساخنة
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday