On Wednesday 30 November, social partners from the temporary work sector put forward an outline for an agreement that offers wage increases in four phases. The size of the raises varies according to nine wage categories that exist in the sector and range between 2.5% and 4.82% per year. The last increase will take place on 1 October 2019. The agreement, which is seen as onerous by employers and economic analysts, offers companies a degree of stability when it comes to salary planning, since the agreement is binding for 36 months from 31 December 2016. The deal also specifically provides for achieving wage equality of temporary workers in eastern and western Länder by 2021. There will also be a branch minimum wage under the agreement.
A heavily regulated sector? Has Germany’s temporary sector negotiated an overly burdensome agreement for companies? Thomas Baümer, vice president of one of the largest employer federations in the temporary work sector, the BAP, said: “It could be a fear that, with this kind of result, the number of temporary workers in the eastern Länder who are better paid than in-house staff will increase.
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