In contrast with the 2008/2009 crisis, short-time working is not just affecting industry, but the entire German economy, and especially the low-wage sectors. Against this backdrop, and with some 4 million employees estimated on short-time working, both trade unions and the political left are calling for an increase in the short-time working allowance from 60% to 80% of (net) income so that many workers can avoid falling into poverty. For the political right and the employers, such a proposal above all presents ‘incalculable risks’ and will not help anyone in the long term. The federal government is currently discussing the proposal, but has not yet made a decision.
The risk of impoverishment. The debate on the level of the short-time working allowance is gaining momentum in Germany. During the weekend 18/19 April, the Social Democratic Minister for Employment and Social Affairs, Hubertus Heil, once again backed trade union demands that believe the level is too low and could lead to large sections of the population falling into poverty. The Federal Employment Agency (BA) currently provides short time working benefits to affected employees for an amount of
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