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Conflict over minimum wage: SPD contemplates legal action - Criticism from unions

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The ongoing debate regarding the ideal minimum wage has taken center stage, with the SPD and Union clashing in recent days. Prospective Chancellor Friedrich Merz (CDU) has voiced uncertainty towards an increased minimum wage, while the SPD advocates for a raise to 15 euros per hour by the end of the year. Ultimately, the Minimum Wage Commission determines these adjustments. Since January 2023, the minimum wage stands at 12.82 euros.

According to the coalition agreement between the Union and SPD, "the Minimum Wage Commission will orient itself within an overall consideration to both the development of collective agreements and to 60 percent of the gross median wage of full-time employees." This approach facilitates a minimum wage of 15 euros by 2026.

Matthias Miersch, a leading figure in the SPD, expressed confidence that the commission will propose a minimum wage of 15 euros per hour, urging it to do so in the coming year. """But if necessary, we can take legislative action,"""" Miersch suggested in a podcast, hinting at possible legal intervention.

Miersch's announcement follows the SPD's legislative amendment in October 2022, which raised the minimum wage to twelve euros. Despite this, the commission was tasked with deciding on future increases.

Carsten Linnemann, the CDU's general secretary, expressed understanding for the SPD's predicament, given their ongoing membership vote on the coalition agreement. However, Linnemann reiterated, ""We still have to stick to the coalition agreement.""""

Thorsten Frei, the Union's parliamentary business manager, echoed Linnemann's stance, emphasizing the importance of the existing compromise. "An equally strong and independent Minimum Wage Commission has proven itself." Frei declared, highlighting the commission's political independence.

The CSU's criticism was not absent, with Sebastian Brehm, chairman of the Mittelstands-Union, condemning Miersch's proposal as damaging. He suggested that such assertions pose a threat to the necessary shift in the economic climate that the commission aims to foster.

Michael Hüther, head of the Institute of the German Economy, accused the SPD of irresponsible politics, arguing that the SPD must choose between "a responsible compromise between employee and employer representatives" and "politicizing the level of the minimum wage." If they persist in the latter, the commission "will become a fig leaf."

In stark contrast, the Left Party welcomed Miersch's proposal, arguing that as legislators, they should intervene if necessary, ensuring a minimum wage of 15 euros. Given the recent inflation, they contend that politics must take action, as it did in 2022.

  • Minimum Wage
  • SPD
  • Matthias Miersch
  • Coalition Agreement
  • CDU
  • Minimum Wage Commission
  • Carsten Linnemann
  • CSU
  • Inflation
  • Left Party
  • Collective Bargaining
  1. Matthias Miersch, a prominent SPD member, expressed his confidence that the Minimum Wage Commission will propose an increase to the minimum wage of 15 euros per hour.
  2. In a podcast, Miersch hinted at potential legislative action if the commission does not make the proposed adjustment.
  3. The coalition agreement between the Union and SPD outlines that the Minimum Wage Commission should consider both the development of collective bargaining agreements and 60 percent of the gross median wage of full-time employees in determining the minimum wage.
  4. Carsten Linnemann, the CDU's general secretary, reiterated the importance of adhering to the coalition agreement on the minimum wage, while criticizing the SPD for potentially politicizing the issue.

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