High “leftover costs.” An IAB study shows that, since the crisis began, businesses introduced short-time working requests for over 3.4 million employees. In June 2008, over 1.4 million German workers were on short-time working. The former coalition government improved this central tool to fight unemployment several times. Thus, half of the social contributions for employees on short-time working, and all of them after six months, or immediately if the company agrees to make training efforts (see our dispatch No. 090664) are paid by the Federal Employment Agency. However, in spite of these aids, which expire at the end of 2010, the businesses concerned still pay around 24% in personnel expenses (when contributions are fully paid) and 35% (when half is paid), because they have to keep paying holiday or Christmas bonuses or even part of social contributions. It can even reach 48% if the company is covered by a collective agreement providing for supplementary aids for employees on short-time working, as in metalworking (see our dispatch No. 090061). In total, these “leftover costs” should amount to €4.2-6.2 billion in 2009.
sses concerned still pay around 24% in personnel expenses (when contributions are fully paid) and 35% (when half is paid), because they have to keep paying holiday or Christmas bonuses or even part of social contributions. It can even reach 48% if the company is covered by a collective agreement providing for supplementary aids for employees on short-time working, as in metalworking (see our dispatch No. 090061). In total, these “leftover costs” should amount to €4.2-6.2 billion in 2009.
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