Germany: construction social partners ask a mediator to arbitrate their dispute

Towards a harmonization of wages in the west and in the east. The IG Bau’s second claim is that, 20 years after the fall of the Berlin wall, wages in eastern Germany be brought in line with those paid in western Germany. So far, there are still different wage grids in the east and in the west with a wage gap around 10%. With the collective agreement which expired on March 31, skilled workers earn €15.48 gross an hour in the west and €13.80 in eastern Germany. Besides, in the east, businesses can still bargain for another 8% wage cut with their employees. “Consequently, eastern businesses propose their services in the west with unbeatable prices. Such competition is hard to bear” an IG Bau spokesman told Planet Labor. Aware of the problem, the two largest construction federations announced a new tariff structure. Thus, employers propose a single salary basis… but based on wages in eastern Germany. “With this new grid, skilled employees would only receive €12.70 per hour, which is less than what they have now. This wage cut is intolerable” said the IG Bau spokesman. Finally, the last bone of contention: the IG Bau wants minimum wage in the east to be raised to its western amount. According to an agreement which will expire on august 31, minimum wage for construction subcontractors is €10.4 in the west and €9 in the east. For skilled workers, it is €12.5 in the west and €9.8 in the east. “This minimum wage levels were introduced to prevent social dumping from Eastern Europe. Sadly, it is often used by German firms, which wasn’t in the original plan” regrets the spokesman. He says that, today, employers are ready for a single minimum wage rate throughout Germany, but amounting to €9.2.