In view of weak economic figures, the Federal Minister of Economics wants to Katherina Reiche expand the projects agreed in the coalition agreement to include several reforms. Among other things, working life should be extended and part-time opportunities reduced.
“We have to work more in Germany overall,” Reiche told the newspaper T Online. This must be done “in fact (…) through a higher retirement age,” and incentives for voluntary work beyond the statutory retirement age should also be created.
The minister also called for a reduction in early retirement. “It cannot be the case that companies that, on the one hand, complain about not having any young talent, at the same time send well-qualified employees aged 61 and over into partial retirement.”
Protection against dismissal and part-time rules should be weakened
Also that one Protection against dismissal must be relaxed, demanded Reiche, who was managing director of the Association of Municipal Companies and CEO of an energy company before becoming a minister. “We need more flexible protection against dismissal that protects the weak, but enables companies, especially in the high-wage sector, to reduce staff more quickly if they have to,” she said. This enables companies to react more quickly to market developments.
Employees would also have to less part-time and more full-time work. “There are many ways to achieve this, for example tax incentives or expanding childcare services.” Germany has in international comparison a rather high part-time rate. It is often pointed out that the German tax system favors this. In addition, female employees often work fewer hours for companies in order to provide unpaid care work. Also, many company positions are only in Part time advertised.
Union wants to persuade SPD to adopt new regulations
The Coalition agreement between the Union and the SPD does not provide for the new regulations demanded by Reiche. Reiche said that for her the treaty was “the basis of our political action.” For the SPD, however, he is “the ceiling”. These “need to be raised together”.
Union parliamentary group leader Jens Spahn also increased the pressure in the coalition: He declared more growth to be the “destiny question of this country” and wants to measure every coalition project against it in the future. Companies would have to limit personnel costs by reducing or at least stabilizing social security contributions.
