Good for employees, bad for collective bargaining autonomy

Labor Minister Hubertus Heil discussed with bakery employees

The amount of the new minimum wage is justified, the procedure is not.

(Photo: dpa)

It’s a good day for millions of workers. Who wants to seriously deny that a minimum wage of twelve euros, which the federal cabinet introduced on Wednesday, is deserved and justified in times of labor shortages and galloping inflation?

But it’s a bad day for collective bargaining – in more ways than one.

Only through the weakness of the trade unions in many low-wage areas and – as a result – the unwillingness of many employers to conclude collective agreements, did politicians feel compelled to act at all. That’s why it’s not fair to criticize the Minimum Wage Commission for adjusting the minimum wage limit too slowly.

Because it is required to orientate itself on the collective wage development and therefore only reflects what the social partners do – or do not do.

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Collective bargaining autonomy is also violated by the legislator’s expectation that the minimum wage should be “poverty-proof” in the future. Employers and trade unions negotiate collective wages that allow employees to participate in the development of prosperity without jeopardizing jobs or the competitiveness of companies.

Beware of a system change

This autonomous action becomes impossible if the legislature now believes that social policy must be pursued with the means of wage policy. This system change cannot work.

Because even a minimum wage of 15 euros or more will not help a single-earner family in Munich to make ends meet.

The twelve euros are heartily granted to the employees. But if employers and trade unions do not find new strength and wage determination is viewed as a continuation of social policy using other means, then there will no longer be collective bargaining autonomy in the low-wage sector.

And we can look forward to the minimum wage competition ahead of the next election.

More: Labor market: Minimum wage of twelve euros has been decided

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