Berlin Normally, it is the classic issues that concern employers: too much regulation, too little flexibility in working hours, collective agreements, the expensive location. At the last pre-corona employers’ day in 2019, there was disappointment because the then finance minister, Olaf Scholz, dashed all hopes of a reduction in corporate tax.
The problems of that time, companies would like to have back today. One day before the Employers’ Day 2022 came the economic forecast of the Ifo Institute, which – like other institutes before it – sees Germany slipping into a recession. Inflation expectations for the coming year vary between 3.5 and more than nine percent. “These are truly historic times that we live in,” said employer president Rainer Dulger on Tuesday before the assembled company leaders at Berlin’s former Tempelhof Airport.
But today’s Olaf Scholz, the chancellor who is sitting in the front row at Employers’ Day, disappoints Dulger and his fellow campaigners again. Only a few share the optimism that Scholz is trying to spread.
Because their problems are numerous. Spurred on by the exorbitant price increases, the unions have been making the highest wage demands for many years. The metal collective bargaining parties began their regional negotiations in Lower Saxony on Monday, and IG Metall is demanding eight percent more money.
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In addition to the high energy costs, which are forcing many companies to stop production or bring them to their knees, there is also the threat of sharply rising wage costs. The number of company bankruptcies rose slightly in August. Employers were usually concerned with reducing bureaucracy or tax cuts at their annual high mass, but for some it is now simply a matter of existence.
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Especially during the crisis, the German economy has often proven that it can be “an anchor of stability for Germany and Europe,” says Dulger. The companies expressly supported the sanctions policy against Russian President Vladimir Putin’s war of aggression. But if the economy is to play its role as an anchor of stability, then politics must also ensure “that our companies remain efficient and flexible”.
This is not possible with a new regulation, for which Labor Minister Hubertus Heil (SPD) is responsible. The accused cannot defend himself, he “unfortunately didn’t find time” to discuss with the employers, according to Dulger. A bureaucratic backlog quickly develops from supposed trifles, says the employer president. And the citizen’s income in times of a shortage of skilled workers is a “fatal milestone” in terms of labor market policy.
“Anyone who wants to preserve social insurance must reform it”
If the economy is to remain strong, then “a turning point in social policy” is also needed, Dulger demands, with a view to the inexorably rising social security contributions. A changed situation requires new answers: “Anyone who wants to maintain social security must reform it.”
Dulger gives an optimistic speech, but does not shy away from criticizing the traffic light and Chancellor Scholz, who is present. The spirit of the coalition negotiations, which was supported by trust and a common goal between the SPD, the Greens and the FDP, that he would like to see back, he says. Unfortunately, the traffic light is not even able to make an ideology-free decision about the continued operation of the remaining nuclear power plants and thus to ensure the supply of affordable electricity.
Business was also disappointed with the relief package put together by the coalition committee. SPD, Greens and FDP had agreed on help for pensioners, for students, for the hard-working middle class, for families with children.
But the companies initially went largely empty-handed with the aid package. Dulger criticizes that the planned renewed midi job reform even put additional burdens on employers.
Scholz: The government is working “at high pressure” on aid
In his speech, Chancellor Scholz promises companies quick help. The government is working “at full speed” to expand the existing funding programs. The head of government is also trying to paint an optimistic picture despite all the problems. In the 1940s, nobody believed in the success of the Berlin Airlift, for which Tempelhof Airport was the central hub, says Scholz. But all those involved had proven at the time “that what seemed impossible can succeed”.
The Chancellor still believes in this motto today. Germany is building liquid gas terminals in record time in order to free itself from Russian gas dependency – and he is “very proud” of it. A commission will be set up to find ways to prevent gas prices from rising further. All laws for shorter planning procedures will be passed this year so that the economy can get affordable electricity and green hydrogen, says Scholz. “We’ll probably get through this winter and that’s good news at this time.”
Anyone who listens to Scholz more often knows that the word “probably” only found its way into the frequently used sentence later. And the rather restrained applause of the guests in the former baggage hall showed that not everyone shares the Chancellor’s optimism – and swallows the tranquilizer pills that Scholz distributes.
labor shortage? The chancellor stressed that forecasts had already been made in the 1990s and that was not the case. Dual training crisis? “Vocational training is the most important training in Germany.” Threat of deglobalization? “We’re not for limiting ourselves to ourselves.”
“It’s not enough that we get through the winter. We have to get through it,” says Bernd Heiden, Managing Director of the human resources development agency Agency for Business. In addition to the energy crisis, he fears rising unemployment if companies have to file for bankruptcy due to rising costs. “Scholz has met my expectations,” says Heiden. But nothing more.
Sarah Schniewindt is not completely satisfied either. The managing partner of the electrical engineering company of the same name demands: “We need a quick solution for the rising energy prices.” Scholz was too vague for her on the subject. It is a particularly challenging time, but if we want, we can implement large projects quickly. “This can be seen in the example of the LNG terminals.”
“It is a joint effort to get through this time and we will do it together,” Scholz calls out to the assembled entrepreneurs. And then comes the word that has been running like a red thread through all his speeches lately: If you “arm each other”, then you will solve all problems.
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