Berlin The Federal Congress has barely opened when the Verdi boss makes his first declaration of war: Germany must overcome the politics of inequality, says Frank Werneke, it needs more investment, more staff and a welfare state that takes responsibility: “That’s why our message is clear: High taxes for the rich.”
Around 1,000 delegates in Berlin will determine union policy for the next four years by Friday, and more than 900 applications are pending discussion.
And even if the traffic light has set the minimum wage to twelve euros and increased the citizen’s allowance, is planning a collective bargaining law or wants to combat child poverty – it quickly becomes clear that the second largest German union expects even more from the self-proclaimed “progress coalition”.
Because times are challenging. The war in Ukraine divides union members as well as society as a whole. Inflation remains high and particularly affects low earners and thus Verdi’s core clientele. Schools and highway bridges are falling into disrepair, ambitious expansion goals for wind power or solar are met with an overwhelmed administration.
The climate crisis is getting worse, and like the white elephant in the room is the AfD, which is now consistently above the 30 percent threshold in the polls in the East.
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Many citizens were worried, said Chancellor Olaf Scholz (SPD) at the opening in front of the delegates in Berlin. They asked themselves what would happen next with globalization, climate change or the ecological modernization of the economy. But: “A society that wants to have a future must stick together.”
But the government and the union do not always agree on how this cohesion can best be organized. The central areas of conflict:
Debt brake and taxes
For Verdi, the debt brake anchored in the constitution stands in the way of future investments and necessary social reforms. Sticking to this would be “a fatally wrong decision,” said the Verdi boss in his opening speech. Werneke emphasized that this will have dramatic consequences, especially in sensitive areas such as child poverty, health, care and education. Areas that “are about cohesion in our society”.
Verdi calculates that public investments of 100 billion euros per year are required for the social design of the ecological restructuring of the economy and society. The union is therefore calling for a top tax rate of more than 50 percent for particularly high incomes, the reintroduction of wealth tax from one million euros and a reformed inheritance tax that would also place a greater burden on company heirs.
“I oppose all those who say that because times are difficult, the welfare state must be scaled back – the opposite is true.”
(Photo: dpa)
Scholz did not comment on the sensitive topic in his speech, as compliance with the debt brake is one of the FDP’s core concerns. However, Verdi received support from Berlin’s governing mayor Kai Wegner (CDU), who pointed out to the delegates that there was a huge investment backlog: “The debt brake must not be a brake on the future.”
welfare state
“I oppose all those who say that because times are difficult, the welfare state must be scaled back – the opposite is true,” said Chancellor Scholz. He referred to the increase in child benefit and child allowance, the housing benefit reform or the significant increase in citizens’ benefit.
But Werneke, who criticized, among other things, the “undignified wrangling” over basic child security, sees “an austerity dictate at the expense of the areas of social affairs, integration and education”.
Verdi is calling, among other things, for an increase in the contribution assessment limit for statutory health insurance, higher citizen’s allowance rates and full nursing care insurance that covers all costs.
>> Read the comment on basic child protection here: The state appears unable to act
The fact that the coalition wants to stabilize the pension level at 48 percent is not enough for the union. It should be at least 53 percent, financed through higher contributions and tax subsidies. The union, however, rejects the expansion of the funded pillar in pension insurance pushed forward by the FDP.
“With her demand to increase the pension level to 53 percent, Verdi is axing intergenerational equality,” criticizes the labor market and social policy spokesman for the FDP parliamentary group, Pascal Kober.
In the next few decades, the younger generation will have to manage the transformation of society towards climate neutrality and face the intensifying global competition. And it should also shoulder rising pension insurance contributions,” says Kober.
minimum wage
It was the traffic lights that raised the minimum wage to twelve euros. But the fact that the minimum wage limit should only be raised to 12.41 euros next year according to the decision of the Minimum Wage Commission is a “resounding slap in the face” for the employees, said DGB boss Yasmin Fahimi at the congress.
>> Read the interview with DGB boss Yasmin Fahimi here: “Mr Lindner has to answer the question of whether this country should still have a stable industrial base”
Verdi is calling for an increase to 14 euros as early as 2024. “A proper minimum wage is part of social partnership in this country,” said Scholz, without commenting on a specific amount.
However, the social partnership would have made it necessary for the Commission to find an amicable solution, emphasized the Chancellor. The decision only came about because the commission chairwoman voted with the employer representatives.
Climate protection
Verdi, together with Fridays for Future, is fighting for better public transport and is also campaigning for stricter climate targets. For trade unions that have a broad thematic focus, it is important to act as an active player in political discourses in order to be able to influence decisions, says Berlin political scientist Gero Neugebauer.
However, this can also be tricky if stricter climate targets cause costs that then also affect low earners. Verdi therefore combines her demand with social compensation for rising CO2 prices, for example.
More: Interview with Verdi boss Frank Werneke – “I don’t see a long-lasting crisis”