News / Europe

Minimum Wage Debate Looms Large in German Election Campaign

A supporter of the Confederation of German Trade Unions (DGB) blows a whistle as she takes part in a union rally for "political change" in Frankfurt, Sept. 7, 2013.
A supporter of the Confederation of German Trade Unions (DGB) blows a whistle as she takes part in a union rally for "political change" in Frankfurt, Sept. 7, 2013.
Ana Hontz-Ward
With signs of an economic recovery in sight, several countries in the European Union, including Poland and Romania, have been discussing the issue of low minimum wages.  But the debate has intensified in Germany, the only European Union country without a minimum wage law. The issue has been at the center of the debate between incumbent German Chancellor Angela Merkel and Peer Steinbrück of the Social Democratic Party, her opponent in the federal elections set for later this month.

Sabine Theodono, 33, works as a hairdresser in a small beauty salon outside the city of Frankfurt.

At $6.50 (5 euros) an hour, hairdressers are among the lowest paid workers in Germany, where, according to the German Federal Statistics Office, the number of people living in poverty is now 12 million, and increase of about 400,000 people over the last decade.

"I work 40 hours a week, but if I wasn’t married and had to support myself with my salary, it would be impossible to pay the bills. With the prices we have now in Germany, it would be absolutely impossible,” said Sabine.

Germany's Social Democratic Party has made the minimum wage the dominant issue in the current political campaign. Their candidate for the post of chancellor, Peer Steinbrück, has recommended an hourly wage of $11.00 (8.50 euros) for all German workers and vowed to pass a minimum wage law in the first 100 days on the job.

"We are talking about euro rescue. We are talking about loans to other countries, and then of course, it’s harder to sell to the German public that people within your own country are suffering. That’s why the opposition parties have tried to make this issue an election issue," said Carsten Brzeski, an economist at ING Bank.

German Chancellor and CDU top candidate Angela Merkel speaks during an election campaign meeting in Giessen, Germany, Sept.4, 2013.German Chancellor and CDU top candidate Angela Merkel speaks during an election campaign meeting in Giessen, Germany, Sept.4, 2013.
x
German Chancellor and CDU top candidate Angela Merkel speaks during an election campaign meeting in Giessen, Germany, Sept.4, 2013.
German Chancellor and CDU top candidate Angela Merkel speaks during an election campaign meeting in Giessen, Germany, Sept.4, 2013.
Chancellor Angela Merkel was originally opposed to a minimum age law, but now campaigns on the idea that industries and the unions should decide their own minimum wage by collective bargaining.

Her Christian Democratic Party fears a national minimum wage will make German products uncompetitive and eliminate millions of jobs.  They also point to countries like France, where a high minimum wage of $12.50 (9.43 euros) an hour made employers reluctant to hire and is considered a leading cause of high youth unemployment.

"That is something that has clearly undermined the competitiveness in many European countries," said Carsten Brzeski. "France and Belgium are such examples, where due to high costs their companies lost market shares. There is always a very thin line balancing between the urgently needed exports that all EU countries need and at the same time having some kind of social justice within the country."

The biggest question in the debate in Germany is who will support the higher salaries and who will pick up the tab - customers, or the government?

"We can pay a higher wage, but we will need help from the government," said Kida Imran, the owner of a small hair salon in the southwestern city of Mainz. "There are so many taxes here in Germany. If they were lower, then businesses would have some relief and could pay their employees a little more."

The debate in Germany comes amid upbeat news of higher-than-expected economic growth, an export surplus and relatively low unemployment compared to other EU countries.

According to ING's Brzeski, whoever wins the chancellor elections should use the momentum to settle the minimum wage debate for good.

"Some kind of minimum standard will come, because it’s very hard to explain to people that the economy is really running like a stream train but that not everyone is benefiting from it," said Brzeski.

According to a European Union study released in July, the country with the highest minimum wage in the EU is Luxembourg, while the lowest minimum wage is in Bulgaria. The German elections are September 22.

You May Like

Will Cuba Follow the Southeast Asia Model?

Decision to restore ties between US and Cuba has some debating whether it will lead to enhancement or regression of democracy for Communist island nation More

Kenyan Designer Finds Her Niche in Fashion Industry

‘Made in China’ fabrics underlie her success More

Report: CIA, Israel's Mossad Killed Senior Hezbollah Commander

The Washington Post story says Imad Mughniyah was killed instantly by a bomb "triggered remotely" from Tel Aviv by Mossad agents More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Jefferson's Library Continues to Impress, 200 Years Lateri
X
Deborah Block
January 31, 2015 12:12 AM
Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Jefferson's Library Continues to Impress, 200 Years Later

Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Egypt's Suez Canal Dreams Tempered by Continued Unrest

Egypt plans to expand the Suez Canal, raising hopes that the end of its economic crisis may be in sight. But some analysts say they expect the project may cost too much and take too long to make life better for everyday Egyptians. VOA's Heather Murdock reports.
Video

Video Threat of Creeping Lava Has Hawaiians on Edge

Residents of the small town of Pahoa on the Big Island of Hawaii face an advancing threat from the Kilauea volcano. Local residents are keeping a watchful eye on creeping lava. Mike O’Sullivan reports.
Video

Video Pro-Kremlin Youth Group Creatively Promotes 'Patriotic' Propaganda

As Russia's President Vladimir Putin faces international pressure over Ukraine and a failing economy, unofficial domestic groups are rallying to his support. One such youth organization, CET, or Network, uses creative multimedia to appeal to Russia's urban youth with patriotic propaganda. VOA's Daniel Schearf reports.
Video

Video Filmmakers Produce Hand-Painted Documentary on Van Gogh

The troubled life of the famous 19th century Dutch painter Vincent van Gogh has been told through many books and films, but never in the way a group of filmmakers now intends to do. "Loving Vincent " will be the first ever feature-length film made of animated hand-painted images, done in the style of the late artist. VOA’s George Putic reports.
Video

Video Issues or Ethnicity? Question Divides Nigeria

As Nigeria goes to the polls next month, many expect the two top presidential contenders to gain much of their support from constituencies organized along ethnic or religious lines. But are faith and regional blocs really what political power in Nigeria is about? Chris Stein reports.
Video

Video Rock-Consuming Organisms Alter Views of Life Processes

Scientists thought they knew much about how life works, until a discovery more than two decades ago challenged conventional beliefs. Scientists found that there are organisms that breathe rocks. And it is only recently that the scientific community is accepting that there are organisms that could get energy out of rocks. Correspondent Elizabeth Lee reports.
Video

Video Paris Attacks Highlight Global Weapons Black Market

As law enforcement officials piece together how the Paris and Belgian terror cells carried out their recent attacks, questions are being asked about how they obtained military grade assault weapons - which are illegal in the European Union. As VOA's Jeff Swicord reports, experts say there is a very active worldwide black market for these weapons, and criminals and terrorists are buying.
Video

Video Activists Accuse China of Targeting Religious Freedom

The U.S.-based Chinese religious rights group ChinaAid says 2014 was the worst year for religious freedom in China since the end of the Cultural Revolution. As Ye Fan reports, activists say Beijing has been tightening religious controls ever since Chinese leader Xi Jinping came to office. Hu Wei narrates.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Former Sudan 'Lost Boy' Becomes Chess Master in NYC

In the mid-1980’s, thousands of Sudanese boys escaped the country's civil war by walking for weeks, then months and finally for more than a year, up to 1,500 kilometers across three countries. The so-called Lost Boys of the Sudan had little time for games. But one of them later mastered the game of chess, and now teaches it to children in the New York area. VOA’s Bernard Shusman in New York has his story.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid