Friday, May 29, 2020

DGB calls for a significant increase in short-time work benefits

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Dhe demands for a higher short-time work allowance in Germany are getting louder. The German Trade Union Confederation (DGB) calls for a significant increase, the Christian Democratic Workers (CDA) is pressing for a minimum short-time allowance. The Greens have already called for a gradual increase in short-time work benefits, so that people with lower incomes receive up to 90 percent of their net wages. The United Services Union (Verdi) welcomed the debate.

“In order to get through reasonably well, at least 80 percent of normal earnings are necessary,” DGB board member Annelie Buntenbach told the newspapers of the Funke media group (Thursday). If thousands had to apply for Hartz IV in addition, “because they simply cannot make a living from the crisis-related mini-income, then ultimately the community pays.”

In a paper from the CDA, the CDU’s social wing, which is available to the editorial network Germany (RND, Thursday), it is required that the Federal Employment Agency (BA) should increase the short-time work allowance to the amount of the minimum wage if the employee has the short-time allowance underneath. “I am concerned that low-income earners in particular are suffering from the effects of the corona pandemic,” said Karl-Josef Laumann, CDA chief and minister of labor in North Rhine-Westphalia, the RND.

Verdi chairman Frank Werneke announced that Germany is at the bottom of the European short-term benefit rate: “In my opinion, it is appropriate to increase the statutory short-time work benefit to 80 percent of the net, for employees with a net income of less than EUR 2,500 a month to 90 Percent of the net. “

Hundreds of thousands of companies have already registered short-time work in the Corona crisis. In principle, the employer reduces working hours and wage payments by up to 100 percent for short-time work. The Federal Employment Agency steps in and replaces 60 percent or 67 percent for parents of net income. The decisive factor for whether there is really a shortage of up to 40 percent of net income is, above all, whether there are rules for topping up in the collective agreement or in company associations.

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