Germany: with the constant regulation of temporary work, businesses are increasingly turning to subcontracting in all sector

The “new disease of the employment market.”  450 customs agents took part, on Tuesday, January 24, in a major police raid in several logistic centers and offices belonging to Kaufland (Schwarz Lidl group) and Netto (Edeka group).  Indeed, these companies are suspected of paying some of their employees (truck operators and storekeepers) 30 percent less than employees covered by the trade and temporary sectors’ collective agreements.  Netto and Kaufland allegedly applied to a practice which, according to the Verdi services union, is widespread in commerce : appealing to external employees via subcontracting agreements which are supposed to be limited.  Netto and Kaufland denied any attempt to avoid collective agreements and assured the authorities of their full cooperation.  However, this case shed light over a growing phenomenon, which unions are now calling “the new disease of the employment market.” 
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ruck operators and storekeepers) 30 percent less than employees covered by the trade and temporary sectors’ collective agreements. Netto and Kaufland allegedly applied to a practice which, according to the Verdi services union, is widespread in commerce : appealing to external employees via subcontracting agreements which are supposed to be limited. Netto and Kaufland denied any attempt to avoid collective agreements and assured the authorities of their full cooperation. However, this case s

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