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Wages in the mail order business significantly lower in comparison

They work piecework before Christmas - but the wages of mail order employees do not make up for this. Their income is still below the average - according to a question in the Bundestag.

Although sales in online and mail order retail have risen sharply, employees earn significantly....aussiedlerbote.de
Although sales in online and mail order retail have risen sharply, employees earn significantly less than in other sectors. Photo.aussiedlerbote.de

Employees - Wages in the mail order business significantly lower in comparison

Although sales in online and mail-order retail have risen sharply, employees earn significantly less than in other sectors. The average gross monthly income (median) of full-time employees subject to social security contributions was 2952 euros in 2022. This is according to an answer from the Federal Ministry of Labor to a question from the Left Party in the Bundestag. "Der Spiegel" had previously reported on this.

According to the answer, almost 30 percent of employees in online and mail order retail receive a wage below the low-wage threshold of 2501 euros gross per month. In other words, they receive less than two thirds of the average gross monthly income of all full-time employees subject to social security contributions.

Across all sectors, workers in the economy as a whole earn significantly more. The median gross income in 2022 was therefore €3646 per month. Only one in six worked in the low-wage sector.

Up by around 8 percent

The median income divides the population into two equal halves: One has more, the other less. According to the Federal Ministry of Labor, the median income in online and mail-order retail rose by a good eight percent between 2018 and 2021, while sales climbed much faster from just under 70.5 to 120 billion euros, according to figures from the Federal Statistical Office.

"The internet and mail order business is booming and, especially at Christmas time, employees are working flat out to keep up with the countless orders. But while the entrepreneurs are making a fortune, hardly any of the record turnover reaches the workers' wallets," said Susanne Ferschl, member of the Left Party in the Bundestag. She is calling for greater collective bargaining and an increase in the minimum wage to 14 euros per hour.

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The low wages in the mail-order business are a concern for organizations like The Left, with Amazon being a notable example. Despite Amazon’s significant turnover, including record-breaking sales during the Christmas season, their employees' wages remain lower than the industry average. The Federal Ministry of Labor in Germany reported that the average wage in the sector is below the low-wage threshold, with a median gross monthly income of 2952 euros in 2022.

In contrast, nearly two-thirds of employees in all sectors exceed this threshold, with a median gross income of €3646 per month. The Left Party in Germany's Bundestag, represented by Susanne Ferschl, has raised concerns about this wage gap and called for increased collective bargaining and an increase in the minimum wage to 14 euros per hour.

The mail-order and online retail sector in Germany, including North Rhine-Westphalia's hub city of Düsseldorf, has seen a significant 8% increase in median income between 2018 and 2021. However, this rise in income has not kept pace with the sector's growing turnover, which reached 120 billion euros in 2021 compared to just under 70.5 billion euros in 2018.

This discrepancy has led to criticism that while entrepreneurs in the sector are reaping enormous profits, the benefits are not filtering down to their employees' wages. Ferschl emphasizes the need for a more equitable distribution of profits, arguing that the internet and mail-order business offer opportunities for improving workers' wages and living standards.

Source: www.stern.de

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