Germany: three-year pay deal in the temporary work industry

On September 17, the social partners in the temporary work industry, a sector which currently employs, in average, 800,000 people a year, signed a collective agreement on pay.  Until December 31, 2016, employees will receive three increases which will vary depending on the year and region (east or west).  In western Germany, minimum wage will amount to €8.5/hour before tax on January 1, 2014 (€7.86 in the east).  The social partners’ announcement arrived five days before the federal legislative election of September 22, whereas the campaign has been affected with the debate on the Federal State introducing universal minimum wage.  This agreement tends to confirm Angela Merkel’s position, who thinks that it’s better to let the social partners determine sectoral minimum wage alone.  (Ref.  130552)
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Employers and the conservative party delighted by this long-term agreement. What a beautiful gift! Five days to the election, the conservative Minister for Employment and Social Affairs, Ursula von der Leyen, didn’t miss the opportunity to make an electoral benefit from the announcement of the pay deal signed in the temporary industry on September 17, between the Confederation of German Trade Unions (DGB) on the one hand and the Temporary Sector Bargaining Union (VGZ, which gathers the...

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