First coalition noise: minimum wage dispute before signing the contract!

First coalition noise: minimum wage dispute before signing the contract!

between the Christian and Social Democrats in Germany has a dispute over the increase in the statutory minimum wage, and that before the coalition agreement has been signed. CDU general secretary Carsten Linnemann has made it clear that he wants to exclude a "political minimum wage" and to adhere to the existing coalition agreement. This happens despite the pressure of SPD general secretary Matthias Miersch, who calls for an increase in the minimum wage. The minimum wage in Germany is currently 12.82 euros, while the SPD is aiming for an increase to 15 euros per hour. The discussion about the minimum wage is more complicated by the independence of the Commission, which is responsible for this, which consists of employer and employee representatives.

Linnemann expressed himself optimistic and considered a minimum wage of 15 euros to be reached, but pointed out that the Commission made the final decision. Miersch threatened that the SPD will take political steps in the event of a non-increase by the Commission. He referred to the increase in the minimum wage to 12 euros in 2022 by the "traffic light" government, which makes it clear that there is an expected development in terms of salaries.

membership survey of the SPD and political course

A member survey is currently underway in the SPD about the coalition contract draft, which must be approved by the party base before it can be signed. The result of this vote will be announced on April 30th. The CSU has already approved the contract, while the CDU will decide on April 28 in a small party congress. CDU boss Friedrich Merz could be elected Chancellor in the Bundestag on May 6th if everything goes on schedule.

A topic that not only concerns the Bundestag parties is the erosion of the collective bargaining contract system in Germany that has been progressing for a long time. In the 1990s, the collective bargaining was still almost 80% and has now fallen to less than 50%. In 2022, only 29% of employees in the private sector had a collective agreement. This development is due to numerous factors, including the increase in the service sector and the fragmentation of smaller companies.

Future of collective agreements and minimum wage discussions

The introduction of the statutory minimum wage in 2015 was a crucial step, but the continued discussion about its amount remains central. The DGB calls for various measures, including facilitating the general declaration of collective agreements and a federal tariff loyalty law to ensure that public orders are only assigned to collective bargaining companies.

The traffic light coalition had promised the strengthening of the tariff bond in the coalition agreement, but so far only implemented an increase in the minimum wage. While the SPD is planning an increase to 15 euros by 2026, there are different points of view: The CDU/CSU favor a decision by the minimum wage commission and the Greens striving to increase to 15 euros in 2025. The left calls for an annual adaptation to inflation, while the FDP rejects political interventions to the minimum wage commission.

Overall, the current discussion about the minimum wage and the collective bargaining in Germany shows a wide range of ideas of the parties, which ranges from the same goals to clear differences.