Heil: Anyone who quits because of citizen's income is "stupid"

Heil: Anyone who quits because of citizen's income is "stupid"

Collective bargaining is underway in the steel industry. IG Metall is demanding a four-day week - with full pay compensation. Is that in keeping with the times? On "Hart aber fair", the guests discuss how much working time we want to afford - and whether work is still worthwhile at all.

More and more people, especially in the low-wage sector, are currently asking themselves whether work is worthwhile for them. After all, the Citizen's Income will be increased in January, and quite a few people have the impression that they can live better with state support. But is that really true?

Hendrik Armbrust is a master roofer and runs a trade business with 35 employees. His employees earn significantly more than the minimum wage. If he paid that, he wouldn't find any employees, he says on "Hart aber fair". On Monday evening, the guests discuss how working hours will change in the coming years. "The working population somehow feels like they're being taken for a ride with the increase in the citizen's income," says Armbrust. In fact, the Citizen's Income will increase surprisingly significantly in January. Single households will then receive 12 percent more money - 563 euros. The reason for this is the increased cost of living, says Federal Labour Minister Hubertus Heil from the SPD, but also emphasizes: "We have done a lot to make work pay." For example, the federal government has increased the minimum wage and reduced contributions and taxes for low earners. And: "We have increased housing benefit and child benefit for hard-working people." It is not wise to focus exclusively on the citizen's income instead of working. The citizen's allowance secures the minimum subsistence level, and that is a requirement of the Federal Constitutional Court.

Michael Hüther also concedes that work brings more money than state support. However, the Director of the Institute of the German Economy (IW), which is close to employers, also points out the benefits that recipients of the citizen's allowance receive, such as tickets for events. He does not mention the fact that the state pays all or part of the rent, heating and electricity. The difference between earnings and citizen's allowance is too low for low earners, he says. "For example, if they have previously worked ten hours and want to work 38 hours full-time, they will only notice a disposable income of two euros from the additional hours," says Hüther. In fact, experts from ARD have also calculated that the average wage between a person working ten hours and an employee working 37.5 hours per week is less than 2.50 euros per additional hour.

Nevertheless, Labor Minister Heil warns against quitting a job in order to receive the citizen's allowance: "Someone who is stupid enough to quit because of the citizen's allowance won't get the citizen's allowance for the time being, they'll get a freeze on their unemployment benefit," says Heil. In fact, people who have worked for more than twelve months and paid into the unemployment insurance scheme do not receive any money for three months after handing in their notice. After that, they receive unemployment benefit 1, which is at least 60 percent of their previous net earnings. If the amount is below the minimum subsistence level, it can be topped up. Citizen's allowance is only available after one year. This serves to bridge the time until a job is taken up. "And if you don't cooperate, there are still reductions in benefits," says Heil.

Four-day week not a solution for all companies

Politicians, trade unions and employers have been discussing the possibilities of reducing working hours for years. Many employees would be happy about this: a better work-life balance could mean less stress. Because the fact is: In recent years, although employee illnesses caused by accidents at work have fallen significantly, there has been an increase in mental illnesses.

The collective bargaining in the steel industry, which began on Monday, is primarily about reducing working hours with full pay compensation. According to Christiane Benner, head of the IG Metall trade union, less is already being worked there than in other sectors. The trade unionist is campaigning for the current 35-hour working week to be reduced to 32 hours. She justifies this with the transformation process in the steel industry, which will become noticeable over the next few years. Shorter working hours could make the industry more attractive and thus attract more skilled workers.

"This is a devastating signal," says IW Director Hüther about IG Metall's demands: "The transformation to climate neutrality will demand much, much more work from us." In the future, more people will be needed to operate electrolysers. Electrolysers are devices that use electricity to bring about a chemical reaction and can be used to produce hydrogen, for example. However, some experts believe that the switch from coke to hydrogen in steel production will significantly reduce the number of workers in the steel industry.

"I don't believe that the four-day week is the solution for all companies and all businesses in Germany," says management consultant Ronja Ebeling on "Hart aber fair". Nevertheless, it is important to talk about new working time models. Labor Minister Heil could have a solution here: More flexible working lives. He says: "There must be the opportunity to work full-time, there must be the opportunity to spend more time with the family. There is a need for further training or to care for relatives." This flexibility in the course of employment must be negotiated between employees and employers, and the state must provide the appropriate framework.

1. Hubertus Heil, the Federal Labour Minister, believes that reducing working hours to receive full pay compensation, as proposed by IG Metall in their collective bargaining for the steel industry, may not be appropriate for all companies and industries due to the transformation process.
2. According to the Cologne Institute for Economic Research's Director, Michael Hüther, recipients of the citizen's income benefit from tickets for events beyond just the monetary support, although the difference in income between working and receiving citizen's income might not be substantial for low-income earners.
3. In the steel industry's collective bargaining, IG Metall is pushing for a reduction in the 35-hour working week to 32 hours, arguing that it would make the industry more attractive and help secure skilled workers for the transformation process to climate neutrality.
4. The Director of IW, Ivo Werneck, suggests that a four-day week may not be the ideal solution for all companies in Germany and emphasizes the importance of discussing new working time models, while Federal Labour Minister Hubertus Heil suggests promoting more flexible working lives via negotiations between employees and employers, as well as providing a supportive legal framework.

Source: www.ntv.de