MIL OSI Translation. Region: Germany / Deutschland –
Source: DGB – Bundesvorstand14.12.2020Evaluation of the Minimum Wage Act “To make the minimum wage poverty-proof, we need the support of the legislature” After six years it is clear: The minimum wage is a great success – economically and socially. But in some places it has to be readjusted, says DGB boss Reiner Hoffmann: “We know today: The entry at 8.50 euros was too low.” An increase to at least 12 euros per hour is necessary. In addition, exceptions must be abolished and controls massively strengthened.
Time online: 2 euros per hour – dispute over salvation plan for an increase in the minimum wage
The statutory minimum wage was introduced in Germany on January 1, 2015, and this year the law was evaluated as prescribed. DGB Chairman Reiner Hoffmann says: “The minimum wage is effective and has not, as many experts initially claimed, contributed to increasing unemployment. Right now in the crisis it is becoming clear that we need to strengthen domestic demand. Tighter controls are important because there are still far too many employers who are circumventing the minimum wage. This is nothing more than breaking the law. We are not a banana republic where laws are broken and people are cheated out of their wages. It has been shown that the exceptions to the minimum wage, for example for the long-term unemployed and for young people under 18, are ineffective. Therefore, these rules should be deleted without replacement. The evaluation shows that the minimum wage was a great success – economically and socially – but that there are also needs where politicians have to readjust. We know today: The entry at EUR 8.50 was too low. To make the minimum wage poverty-proof, we need legislative support. The EU Commission has identified an important criterion for this. The minimum wage should be 60 percent of median income. That would be at least 12 euros for Germany. Otherwise, the minimum wage increases should continue to be discussed by the minimum wage commission and take place on the basis of previous collective agreements. It makes sense to take a closer look at the general development on the labor market. The attractiveness of areas with a shortage of skilled workers could also be increased by means of higher minimum wages. The minimum wage commission should take greater account of the fact that wages always have a macroeconomic function to stabilize incomes and thus also to stabilize our overall economic situation. This has been achieved with the current increases, which will apply from January 2021. The last of the agreed stages will come in the summer of 2022, when the crisis should long be over. “
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.