The “grand commission” shared by the conservative parties (CDU and CSU) and the social-democratic party (SPD) finished working on Tuesday, November 27, around 5:30 am after one of the longest negotiations since the end of the war for the formation of a federal government. After 5 weeks debating and bargaining, the parties finally agreed on a “Grand Coalition” program called “Prepare the future.” About employment, retirement and labor law, the social-democrats were able to impose a number of their claims, the most memorable being the introduction of statutory, universal minimum wage on January 1, 2017 – after a transition phase, which will start on January 1, 2015. Planet Labor gives you the key measures of this 185 pages long agreement. Nevertheless, this “Grand Coalition” government and application of this program, which is a sort of ministerial roadmap, will only be possible if SPD activists accept it at an internal referendum, the results of which will be revealed on December 14-15. (Ref. 130746)
Statutory minimum wage on January 1, 2017. Universal, mandatory minimum wage, in the amount of €8.50/hour (gross) will be introduced on January 1, 2015. However, exceptions will be possible during a transition phase that will end on January 1, 2017. The law will not affect wages negotiated under the “Posted Workers Act,” which are above €8.50. It will not affect apprentices and people with a minijob either. Besides, collective agreements providing for minimum wage below €8.50, already negotiated and valid until after January 1, 2015 will be maintained until January 1, 2017.
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