Germany on its way to one or more minimum wages?
(B2) The question of the minimum wage has been debated for several months in Germany. But the grand coalition partners – CDU and SPD – seem close to an agreement. A report by the coalition's ad hoc working group, which has just been published, has already recognized "the need for action" on "minimum wages, the law on posted workers, defense against indecent remuneration and additional remuneration" and displays the desire "to achieve effective regulations for low wages".
If there is agreement on the objective, CDU and SPD however diverge on the means. The CDU would prefer a "mixed" salary (low salary supplemented by a state subsidy) to the institution of a minimum salary, defended by the SPD. Until now, Germany protected professions particularly exposed to wage dumping (such as construction) by instituting a sector-specific wage floor; a law extended last March to the cleaning sector. One solution would be to extend it on a case-by-case basis. The working group's document will be examined on May 14 by the "coalition committee", which will have to decide between the different options.
Chancellor Angela Merkel did not reject any idea of "flexible, branch-specific" solutions. On the other hand, it reaffirmed its opposition to the creation of a single minimum wage valid throughout Germany. Speaking to the unions, she said she was betting instead on strengthening "tariff autonomy", driven by strong unions. “It is up to the trade unions to prevent the fixing of wages that are too low” she explained.
(NGV)
