Germany experiencing a rise in its working poor

August 21, 2010 - 4:56 pm Comments Off

The working poor are more numerous in Germany, despite the apparent strength of the economy. This is the amazing result of a study that denounces the massive use by companies to employees paid low wages shot. According to the Institute's work at the University of Duisburg-Essen, more than 6.5 million people in Germany, almost 20% of workers would receive less than 10 euros gross per hour.The figure is especially worrisome for very low pay 2 million employees earn less than 6 euros an hour and, in the former GDR, they are very likely to try to live with less than 4 euros per hour that is to say less than 720 euros per month for a full-time.

The population affected by this vulnerability is that no choice of his job due to low qualification: less than 25 years, foreigners, women.

This is unique in Europe, the study said, recalling that other EU countries have implemented almost all legislation establishing a minimum wage. This is not the case in Germany, where each industry has its own salary scale, negotiated with the unions. This system is beneficial to the industries very unionized, such as automotive and metallurgical.But in services, fragmented into many very different sectors, the system is at the expense of employees.

It was during the last decade, coinciding with the harsh social reforms of the Schröder era, the problem has increased. The number of working poor has increased by 2 million since 2000, particularly with the use of part-time work.

Accept very low wages

A consequence of the policy of forced march back to work established by the Social Democratic government of Chancellor Schroeder. Very decried "a Eurojob, employment or paid one euro an hour, the Germans were accustomed to having to accept very low wages to qualify for coverage, while reducing unemployment statistics.Structurally, it should however be absorbed, the researchers explained: with an aging population and decreasing workforce, areas of assistance to individuals and health will experience a boom in the next ten years.

What, perhaps, eventually give more power to employees to renegotiate their revenue.

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