(de-news.net) – The discourse surrounding the proposed, politically defined increase of the minimum wage to 15 euros per hour, as suggested by the SPD, has elicited significant criticism from employer associations. The President of the Central Association of German Crafts, Jörg Dittrich, expressed disapproval, emphasizing that such matters should remain beyond political influence. He further highlighted concerns regarding the potential strain on collective bargaining structures, particularly during a period of economic fragility in Germany.
The Gesamtmetall employers’ association, led by Oliver Zander, equally criticized the proposal for a politically mandated increase. Zander argued that it would result in a 76 percent rise in the minimum wage over a decade, far exceeding the growth of collectively negotiated wages. Besides, Zander warned of economic repercussions, including inflation, price hikes in sectors like hairdressing and gastronomy, and potential business closures in Eastern Germany. He accused the SPD of politicizing the minimum wage, risking wage uniformity across the labor market. Dittrich emphasized that minimum wage decisions should remain with a commission of employers, employees, and academics, not political entities.
CDU General Secretary Carsten Linnemann opposed the idea of politically determining the minimum wage, rejecting SPD General Secretary Miersch’s statements. Linnemann acknowledged the SPD’s pressure due to its membership survey on the coalition agreement but emphasized adherence to the agreement. He stated that a 15-euro minimum wage was achievable but ultimately a decision for the relevant commission.
Matthias Miersch (SPD) had threatened to legislate the 15-euro minimum wage if the commission recommended a lower figure. The SPD-led coalition government had previously raised the minimum wage to 12 euros in 2022, drawing criticism from the opposition Union.
Michael Hüther, head of the German Economic Institute, criticized the SPD’s approach as irresponsible, stressing that an independent commission traditionally decides the minimum wage. He warned that politicizing the wage undermines compromise between employer and employee representatives, harming businesses and employees alike. Hüther urged the SPD to allow the commission to function independently and to preserve its stabilizing role.
On the other hand, DIW President Marcel Fratzscher supported the 15-euro minimum wage from 2026, arguing it would benefit the economy by compensating inflation-induced losses and boosting consumption and growth. He noted that higher wages would potentially shift employment towards businesses capable of paying them, enhancing overall efficiency and productivity. Fratzscher also claimed that the commission is influenced by employer and employee interests rather than being fully independent.
