Germany: unexpected problems in the transport sector over the minimum wage law that was designed to combat social dumping

Designed to combat social dumping and low wage, several provisions in Germany’s new minimum wage law are posing serious administrative problems for businesses and industries where, whether it be due to mobility or special hours, the obligatory recording of working time is proving complex. In fact the complexity inherent in the new law actually risks having the opposite effect than that intended.  The experience of the transport sector illustrates the issues. Currently foreigner transporters have obtained a temporary suspension of the obligation to pay their own drivers the minimum wage whilst carrying out their duties on German territory. Whilst Andréa Nahles, with union support, has refused at least for the moment, to makes any changes to the law, many employers’ federations deplore a law, which returns the community to a system that de facto controls working time and overtime hours. 
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A moratorium for the transport sector until the summer. After Germany announced its moratorium on salaries for foreign transporters transiting the territory, Polish companies are breathing easier, whilst Polish unions are sorely disappointed. The announcement at the conclusion of a meeting held on January 30, 2015 between the Polish Minister for Social Policy and Labor, Wladslaw Kosiniak-Kamysz and the Minister for Employment and Social Affairs, Andréa Nahles stated that in order to maintain “good neighborly relations”, Germany had decided to suspend the obligation in the minimum wage law that has been in force since January 01, 2015, for foreign transporters to pay their drivers the minimum hourly wage while transiting German territory.

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