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MIL OSI Translation. Region: Germany / Deutschland –

Source: DGB – Bundesvorstand15.10.2020klartext 35/2020Bureaucratic reduction: Good work instead of deregulation! The state of North Rhine-Westphalia wants to supplement the economic stimulus package for the Corona crisis with measures to “reduce bureaucracy”. That sounds good, but in fact labor rights, social and environmental standards are supposed to be undermined on a broad front. The burden of the crisis would then be borne by the employees again.

DGB / Bartolomiej Pietrzyk /

In the coming week, Federal Council committees will discuss a proposal from the state of North Rhine-Westphalia. This suggests adding numerous measures to “reduce bureaucracy” to the economic stimulus packages agreed to deal with the Corona crisis. The aim is to relieve companies, make investments easier and increase efficiency by reducing costs.Recurring hymns of praise for deregulation What may sound plausible at first glance, however, corresponds to a hymn of praise for deregulation that recurs in economic crises as a supposed guarantee for growth and employment. Under the guise of an investment-friendly reduction in bureaucracy, attempts are being made to undermine labor rights, social and environmental standards on a broad front. The negative effects of numerous flexibilization and deregulation measures in the wake of the economic crisis of 2008/09 are still noticeable ten years later, especially on the labor markets in southern Europe: high youth unemployment, precarious employment. However, there was no noticeable increase in private investment activity. Largest low-wage sector in the EU would continue to grow The application from North Rhine-Westphalia also shifts the burden of the crisis on to employees. The proposal to raise the income limit for mini-jobs from 450 to 530 euros would expand atypical employment relationships. A good 300,000 regular employees would slip into mini jobs as a result of this increase. The pandemic has clearly shown that those employed here are unprotected on the labor market: mini-jobbers have been laid off on a massive scale and, for example, are not entitled to short-time work benefits. Insurance coverage would be dismantled for many workers and the already largest low-wage sector in the EU would continue to grow. Around 7.333 million employees work in atypical jobs. A good third of this is temporary employment. Source: EU Commission

In addition, it is also proposed, for example, that employment contracts with no objective reason should no longer only last two but three years and be extended four instead of three times. These measures also have a particularly negative effect on atypical employment: Fixed-term employment contracts already make up 31 percent (see graphic). A blow against social solidarity In addition to attacks on the rights of workers, the push from NRW is also a blow against social solidarity. The introduction of a financial transaction or wealth tax is expressly discouraged. Strong shoulders should contribute more to overcoming the crisis. Most proposals from North Rhine-Westphalia have little to do with a sensible review of bureaucratic hurdles. The pandemic clearly shows that countries with solutions to short-time work and a solid welfare state can get through the crisis much better. Every good and secure job supports domestic demand, stabilizes the economy and thus enables investment.




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