Financial Updates

The blog "FINANCIAL UPDATES" consists on exclusive economic and commerce news about across the world particularly Pakistan economy

Thursday, March 8, 2012

20pc German workforce is under-wage

Ishfaq Ahmed

As developed as Germany is, almost 20 percent of the workforce is underpaid because the country has no Minimum Wage Policy.

Mr. Christoph Hahn, a leader of the German Trade Union Confederation (DGB) told to the economic and business reporters belong to the selected countries of Asia including Pakistan and Africa, that the eight million workers out of 41 million workforce get wages below to 4 and 5 Euros per hour adding that the Germany is among those countries which have no minimum wage policy. He said that their income is not sufficient for their daily needs and government has to pay additional money to catch up their needs.

Hahn said that the DGB is persuing for fixing minimum wages level in the Germany around about 7 to 8 euro per hour. He said the his organization is lobbing the government to adopt a minimum wage policy.

He said that the trade union had launched lobbying for introducing minimum wage policy in 2006 and it is expected that in next year the German Parliament will adopt the policy after general elections in the country.

However it is very unclear as only Social democrats have openly supported this idea. The German Chancellor Angela Merkel's Conservative Party is fifty-fifty about the minimum policy, but Liberal Party does not want anything to do with a minimum wage policy. 

But Hahn said that according to many surveys, 85 percent of German populations support the minimum wage policy.

If, German approved the minimum wage policy than lower employees will enjoy substantial increment in wages. 

On a query, he said that the most of the German multinational companies in abroad violate the international level of wages, pensions and OECD  guidelines. Giving examples Indonesia and Philipine, he said that the German companies violated the guidelines in these countries but his organization took stand and solve the issue within the guidelines of OECD.

"We want the German companies go to abroad and follow the OECD guideline and German standard and give pensions salary package etc," he added.

He told that out of 41 million workers, 7.59 million workers are members of his eight trade unions under the umbrela of his organization.

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