The basic rate
October 31, 2011
German Chancellor Angela Merkel's Christian Democrats (CDU) are exploring the idea of a mandatory minimum wage for workers, party leaders said on Sunday.
"It is no longer a question of whether we will have a minimum wage, but how we will agree to the right amount," Labor Minister Ursula von der Leyen told the newspaper the Süddeutsche Zeitung.
According to Peter Altmaier, the party's chief parliamentary whip, the CDU will debate a proposal for a minimum wage ahead of a November congress.
This is a significant policy reversal for Merkel's party, which has previously rejected a nationwide minimum wage. Opposition to a minimum wage is even written into the coalition agreement signed by the CDU and its pro-business coalition partners, the Free Democrats, in 2009.
Workers left behind
Competitiveness in Europe's largest economy has increased over the last decade, partly by keeping wages low and making the labor market more flexible. But some workers feel they've been left behind, even as Germany recovered from the global downturn faster than expected.
Currently unions and employers in some industries have negotiated minimum wage agreements for their area. The center-left opposition and unions have long called for a national minimum wage and welcomed the news of the CDU's new stance.
"A minimum wage creates jobs," said Michael Sommer, head of the DGB national trade union federation.
The proposal being considered by the CDU says the minimum wage could be based on the current lowest hourly pay already in place for temporary workers: 6.89 euros ($9.76) per hour in the eastern states and 7.79 euros in the western states.
Author: Holly Fox (AP, Reuters)
Editor: Michael Lawton