Obligation to reach a consensus is required
Esken makes a proposal for minimum wage commission reform
April 29, 2024, 12:32 a.m
From 2025, the minimum wage is set to rise to 12.81 euros an hour. Although the decision comes from the Minimum Wage Commission, it is also the result of a dispute in which the employee side was outvoted. SPD leader Saskia Esken is now calling for new legal requirements for the commission.
SPD leader Saskia Esken has spoken out in favor of reforming the minimum wage commission. “We should change the legal requirements for the Minimum Wage Commission so that decisions can only be made by consensus,” she told the Germany editorial network. This is also common in collective bargaining. “You have to come to an agreement; one side cannot overrule the other. That would also make sense with the minimum wage.”
A minimum wage of 12.41 euros has been in effect since January 1st. At the beginning of 2025, the lower wage limit set by the state and proposed by the Minimum Wage Commission will rise to 12.82 euros. The minimum wage commission of employers and employees decided on the increases until 2025 last year. For the first time, the union side was outvoted by the independent commission chairwoman, who voted with the employers. The German Federation of Trade Unions had demanded at least 13.50 euros.
Higher collective wages are also required
Esken also reiterated the SPD’s demand for a higher minimum wage. “The increase this year and next year is far too low given the burden on employees. It must definitely be high enough so that single people can live in poverty if they have a full-time job at minimum wage level,” said the SPD chairwoman. Collective wages would also have to rise.
Esken also advocated for shorter working hours. “It has become clear that shift work, too much overtime, too many temporary shifts can make you sick. If people become unable to work, no one is served.” The argument in favor of shorter working hours is that better distribution across more shoulders and lower average working hours can actually increase the overall work volume. There are companies that enable a four-day week with full wage compensation. “And it works,” said Esken.