Tuesday, June 28, 2016

Commission decides today: poverty researchers: minimum wage has clearly … – ABC Online

Tuesday, 06.28.2016, 09:05 · FOCUS-Online-expert Christoph Butterwegge
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Companies and workers in Germany get clarity on the future level of the minimum wage. A commission of employers and workers representatives will decide on Tuesday in Berlin about raising the minimum wage.

Since 1 January 2015, in Germany there is a statutory minimum wage of 8.50 euros gross per hour, which will apply from next year for all sectors of the economy. By the end of June, the minimum wage of the Federal Government should be a this, however non-binding recommendation as to whether the current hourly rate is also in 2017 maintained or reduced for the year or increases.



What causes the minimum

Due to many exceptional, specific and transitional provisions for individual sectors or groups of people (eg long-term unemployed, young people without qualifications, short-term interns and newspaper deliverers) and swift evasive action and avoidance strategies of employers was the minimum wage not to at all lowest laborers in Germany.

Still, he was compared to the earlier, without rights in a way state this group an enormous progress. Approximately 4 million employees (2.9 million in West and 1.1 million in East Germany), which are mainly active in the retail distribution, hotel and catering industry, have benefited directly from the minimum wage, because their wages under 8.50 Euro was gross per hour time. been

the minimum wage of low-wage sector is sealed downwards and a further wage differentials prevented. 58,000 MiniJobber changed to autumn 2015 over to social security payments. Returned is the number of often miserable paid internships.



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Finally, the minimum wage neither the economy has not hurt the labor market, as of his critics predicted. The Munich “star economist” Hans-Werner Sinn had in FOCUS (v 16/11/2013.) Asserted a statutory minimum wage at this level would cost “well one million jobs”, was however completely wrong: The minimum wage has increased the purchasing power, the revives domestic demand and stimulate economic growth.

However, it is only about 57,000 of the then so-called 1.3 million. spiking managed by the minimum wage, to escape from the Hartz IV relation. The particularly sensitive group of the long-term unemployed has apparently benefited in any way from the fact that they are generally excluded from the minimum wage for six months.

At the job centers are not about long queues of employers have formed, the unemployed would adjust below the usual minimum wage levels. Rather, the known reservations about people act on, who have received transfer payments like unemployment benefits over a longer period of time.



forced migration and minimum

As the number of migrant in late autumn 2015 increased sharply , saw corporate lobbyists and neoliberals came their chance to ask for an abandonment or weakening of the minimum wage. Hans-Werner Sinn proposed to lower the minimum wage, or completely abandon the CDU Economic Council called for a temporary exemption and lower entry wages for refugees, and also the experts for the investigation of the overall economic development would treat refugees in search of a job as long-term unemployed and them even twelve months of the minimum wage withheld. Moreover, it should in the opinion of the “five wise men” for the time being not be increased.

Such measures would not only increase the poverty of the affected refugees and re-draw the entire wages in Germany down, but also the number of “top-up” increase Hartz IV recipients, ie the state budget an additional burden, reduce the purchasing power and thereby curtail the increased strain by the minimum domestic economy. In addition, water is guided to the propaganda mills of the extreme right, to persuade the danger of social degradation members of the lower middle class tried that them immigrants snatch the job.



Measures of future minimum

As the minimum commission is trailing oriented to the wage development and may differ only by a two-thirds majority, the part of the employer but was brought with regard to the Flüchtlingszuströme on the labor market even a lowering of the minimum wage this week, is 1 January 2017, more than a expected slight increase to 8.75 to 8.85 euros per time hour.

If the dignity of the (working) people according to Art. 1 basic law is the decisive measure to the required text of the law of the Grand coalition ” to guarantee adequate minimum protection “of workers, the minimum wage must meet four conditions: 1. ensuring the socio-cultural subsistence level, 2. avoiding work poverty, 3. overcoming the low-wage threshold (two-thirds of the average wage of all workers) and 4. the prevention of poverty in old age (pension without supplementary reference state basic security services).



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The minimum wage enables its recipients in most cases, not even to take the lowest hurdle: Only those who have no children and a cheap apartment for rent, reaches out through the minimum wage at the same level of Hartz IV. Previously, the minimum wage reaches just 47.8 percent of the median wage. In a rich country like the Federal Republic of minimum must however remain a poverty wage!

In order to guarantee a pension above the basic pension after 45 years of full-time employment, the hourly wage would have to government figures even more than 11,50 Euro amount. At least it’s time for 10 Euro. Since all western European countries already one – sometimes even considerably – have higher minimum wage than the Federal Republic, Germany, however, is the most economically powerful EU member, it would be more than justified

Prof.. Dr. Christoph Butterwegge teaches political science at the University of Cologne. Last are his books “Hartz IV and the consequences. On the way to another republic? “And” wealth instead promote poverty reduction. A social and fiscal policy mid-term review of the grand coalition “appeared.

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