Germany: Finance Ministry, employers and unions sign a pact against hidden labor in the textile industry

Fighting illegal labor together.  In the pact’s foreword, Wolfgang Schäuble, German Minister of Finance, said that fighting against hidden and illegal labor was a “priority” for the federal government, for two reasons.  First, businesses doing illegal business or employing workers illegally don’t pay taxes or social contributions.  Second, they harm businesses and employees who respect the law.  “Such unfair competition leads to bankruptcies and job cuts” the Christian-Democratic Minister warned, pointing to the need to add prevention measures to the repression policy.  “In this respect, we are banking on wide social consensus” the Minister pointed out, adding that the new pact was in line with that perspective. 
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illegal business or employing workers illegally don’t pay taxes or social contributions. Second, they harm businesses and employees who respect the law. “Such unfair competition leads to bankruptcies and job cuts” the Christian-Democratic Minister warned, pointing to the need to add prevention measures to the repression policy. “In this respect, we are banking on wide social consensus” the Minister pointed out, adding that the new pact was in line with that perspective.

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