Commission presents proposal: business and trade unions to argue about minimum wage

Before the decisive meeting of the minimum wage Commission on the establishment of a new statutory wage limit from January 2021 to deep divisions in the Commission to be visible.

The unions are calling for a significant increase in the minimum wage, which today is 9,35 Euro per hour. The employers ‘ representatives warn, given the burdens of many companies in the Corona-crisis to large increases.

He had no understanding of, “if in these times the politicians and the unions with public proposals to roll over almost,” said Steffen Kampeter, sitting for the Federal Union of employers ‘ associations (BDA) in the Commission, the German press Agency. Stefan Körzell, member of the management Board of the German trade Union Federation (DGB) and also a member of the minimum wage Commission, said the dpa, many of the workers who had been applauded recently, because they have ensured the supply of the population, earned at the lower end of the wage scale. “You should practice now, in renunciation, is out of the question.”

On Tuesday the Commission will meet for their crucial meeting, and will submit your proposal on the amount of the statutory minimum wage as of January 2021.

HOW IS IT DECIDED

A statutory minimum wage since 2015 in Germany. To Start, it stood at € 8.50 per hour and has been increased several times since in small steps. According to minimum wage act, each consisting of three employer representatives and trade Union representatives must learning, two science and a chair occupied the Commission every two years, the future level of the minimum wage level re-set. The proposal of the Committee can make the Federal government by regulation to be binding. Voting the employer shall be entitled and employee representatives. It comes to a stalemate, the Chairman with his voice a majority.

10-EURO-BORDER IN SIGHT

To what is concretely possible, the minimum Wage starting in January 2021 no side made a preliminary accurate information. A significant basis for the decision data of the Federal Statistical office, the rate of the last two increases in years. Already in February it became known, that on this Basis the minimum wage in the coming year on 9,82 euros raised could be the 10-Euro mark in sight, but not reached. Trade Union representatives are calling for more and not argue that a pure orientation towards the collective development was not sufficient and an overall balance needs to take place. Körzell said a few days ago in a Video Interview at dgb.de “We fight for every dime that’s still out”.

In the minimum-wage law is specified in addition to the orientation to the Tariffs that the Commission “shall consider, in the context of an Overall assessment”,, “what is the level of the minimum wage is suitable to contribute to an adequate minimum protection of employees, to enable fair and well-functioning conditions of competition and not to jeopardize employment”.

EMPLOYERS WARN OF BURDENS ON THE ECONOMY

On this clause the employers ‘ side refers. One of the adjustment criteria, the minimum development requirement to not endanger employment, BDA chief Executive, Kampeter said. He spoke in connection with the Corona of one, “unprecedented economic crisis”. In the end, you need a balanced result for a stable employment and economic development. The managing Director of the Central Association of German crafts (ZDH), Karl-Sebastian Schulte, also a member of the minimum wage Commission, spoke of an “unprecedented recession”. “The statutory requirement not to endanger the employment, to this Time a special meaning,” he said with a view to the upcoming minimum wage decision.

UNIONS ARGUE WITH OF CONSUMPTION AND DEMAND TANGIBLE STEPS

According to the unions, it would be important to us just now, to increase the minimum wage to strengthen the purchasing power and thus boost consumption. “In the current Situation in the minimum wage to pull up the handbrake, would be the wrong Signal,” said Körzell. Andrea Kocsis, who is the Deputy Chairman of the trade Union verdi in the Commission, said the dpa: “Good and for all of us, important work must be properly rewarded, which shows itself in times of pandemic more clearly”.

The trade unions have been demanding for a long a significant jump in the minimum wage and reiterated that before the meeting of the Commission. IG BAU-chief and the minimum wage Commission member Robert Feiger said the dpa: The minimum wage needs to be developed further, so that everybody could live by his own hands. Perspective to urge a minimum wage of 12 euros. The workers ‘ representatives argue that the current minimum wage of 9.35 Euro would lead to an income below the poverty line. In addition, old-age poverty threatened due to low pension entitlements, which would be acquired.