Greens, trade unions and social organizations insist on reforms for a higher minimum wage in Germany. Employer President Rainer Dulger defended the agreed increase by two times 41 cents – and warned against a new election campaign for the minimum wage. “Populism with the pay packet only leads to even higher inflation,” Dulger told the German Press Agency in Berlin. Dulger was heavily criticized for his statement.
Verdi boss Frank Werneke reproached Dulger’s employers’ association for “obviously indifferent to the living conditions of people who are only paid according to the statutory minimum wage”. The chairwoman of the social association SoVD, Michaela Engelmeier, accused Dulger of “a lack of awareness of the reality of life for many people in Germany”. “Because many of them don’t know how to make ends meet, despite working full-time.”
Doubts about poverty resistance
The Greens social politician Frank Bsirske recalled the beginnings of the minimum wage: “The core motive was that work should not make you poor.” With the agreed increase from 12 to 12.41 euros next year and to 12.82 euros in 2025, this goal will be missed, said the former Verdi boss of the dpa. “That means a relapse before 2015,” said Bsirske. At that time, the lower wage limit was introduced at an initial gross rate of EUR 8.50 per hour.
“The previously decided increase in the minimum wage by 41 cents from next year is a slap in the face for millions of employees in the low-wage sector,” said the president of the social association VdK, Verena Bentele, the dpa. Werneke said that minimum wage earners in particular are suffering from the continued sharp rise in prices – “especially for food”. According to Fahimi, many of the minimum wage earners have to apply for supplementary benefits through the citizen’s allowance. “That means we use tax money to finance wages that do not protect against poverty.”
Controversial decision
The minimum wage commission of employers and employees had made its controversial decision shortly before the summer break – but for the first time the union side had been overruled by the independent chair of the commission. Labor Minister Hubertus Heil (SPD) had nevertheless announced that the recommended increase would be implemented by ordinance.
“The employers did themselves a disservice by pushing their demands through the minimum wage commission because they questioned the commission’s ability to function,” DGB boss Yasmin Fahimi told dpa.
Different opinions on EU requirements
“The EU minimum wage directive stipulates that the minimum wage in every EU country should be based on 60 percent of the median wage,” said Fahimi. At the median or middle income level, there are just as many people with higher incomes as there are people with lower incomes. According to Fahimi’s calculation, the coming year would be 14.12 euros, even if it is not yet clear how high the median income will be in 2024. In any case, one is a long way from such values. “And that’s a scandal,” said Fahimi.
However, opinions differ as to how far the EU directive goes. “In order to achieve the reference values specified there, the minimum wage would have to be 13.16 euros (50 percent of the average wage) or 13.53 euros (60 percent of the median wage) today,” said the research institute of the Hans Böckler Foundation, which is close to the union identified back in March.
Employers emphasize the Member States’ leeway in implementing EU requirements. “The EU Minimum Wage Directive does not change the legal requirements for the work of the Minimum Wage Commission,” said Employer President Dulger. “I ask that you respect the work of the commission,” Dulger said. “The decision was made legally as required by law.”
Call for the legislature
In order to achieve a significant increase in the lower wage limit, VdK boss Bentele is demanding that the government intervene, “just like it did last year by raising the minimum wage by law to 12 euros”. SoVD boss Engelmeier said: “14.13 euros per hour is the absolute minimum. The federal government must act now.” SPD leader Lars Klingbeil had already promised a larger increase than previously planned – citing the EU requirements of 13.50 to 14 euros.
Bsirske and Fahimi are even pushing for more fundamental changes. The trade unionist wants changed rules for the minimum wage commission. “It must be fixed by law that the minimum wage is defined as 60 percent of the median wage,” said the Green MP. A one-off increase by law, as demanded by Bentele, would not prevent meager increases in the future from Bsirske’s point of view.
Fahimi called for a reform of the Minimum Wage Commission. “It cannot be that, in case of doubt, one of the two benches is overruled,” she said. “The role of the presidency urgently needs to be neutralized.” If the employee and employer fail to come to an agreement, “a real arbitration procedure is required”.
Dulger responded to such demands: “The minimum wage must not become a political pawn again before the next federal election.” He also asks that the tariff autonomy be observed. “This is guaranteed to employers and employees by the constitution.”
