Union of employers critiques Heil for advocating for minimal wage escalations
The German government needs to promptly adopt the EU's minimum wage guideline. According to Labor Minister Heil, the minimum wage should increase to around 14-15 euros per hour. This stance infuriates Kampeter, a representative of employers, who threatens to hinder cooperation within the responsible committee due to this demand.
Employers accuse Heil of distorting the facts in the discussion regarding the mandatory minimum wage. This was sparked by a letter where Heil suggested the Minimum Wage Commission hastily elevate Germany's minimum wage to be 60% of the average wage level, which translates to about 15 euros per hour. "Our national standard, lawfully established, is the progression of collectively agreed wages," said Kampeter, CEO of the Federal Association of German Employers' Associations (BDA), to the "Frankfurter Allgemeine Zeitung".
Kampeter criticized Heil, stating if he intentionally ignores this standard, he's manipulating the situation. Kampeter refers to the EU directive's wording, which suggests member states should evaluate the adequacy of statutory minimum wages using reference values. These reference values can include criteria like 60% of the average wage and/or reference values established at the national level.
Due to this new dispute, employers now contemplate withdrawing from the commission: Kampeter confirmed this as a justifiable consideration. "We will discuss this in our organizations soon," he said.
Heil believes the EU regulation will cause a 15-euro minimum wage for employees in Germany within the next two years. The current minimum wage is 12.41 euros per hour gross, and it will increase to 12.82 euros on January 1, 2025, fulfilling previously made decisions. From 2026, the minimum wage would be between 14 and 15 euros, according to Heil's recent comments.
In his letter to the Minimum Wage Commission, Heil stated that the new EU requirements are met if the committee considers the decision for a minimum wage of 60% of the average wage. The EU Minimum Wage Directive must be implemented into national law by November 15.
Kampeter, as the CEO of the Federal Association of German Employers' Associations (BDA), strongly disagreed with Heil's suggestion to hastily increase Germany's minimum wage to 60% of the average wage level, which is equivalent to around 15 euros per hour. The BDA argued that this approach goes against the national standard of collectively agreed wages.
Despite the EU's minimum wage guideline, the Federal Association of German employers' associations has considered withdrawing from the responsible committee due to what they perceive as Heil manipulating the situation by ignoring the national standard.
