Germany’s leading social welfare association, the SoVD, has voiced strong opposition to calls for a weakening of employment protection laws. The organization cited a recent rise in unemployment figures – exceeding three million for the first time since 2015 – as a critical warning signal, emphasizing the need for a different approach to labor market policy.
SoVD Chairwoman Michaela Engelmeier argued that discussions about increased flexibility through loosened dismissal protections, such as those recently proposed by economic advisor Veronika Grimm, represent a misguided social policy with potentially severe consequences. Engelmeier instead calls for increased investment in promotion and qualification initiatives, particularly for young people, to ensure access to education and vocational training.
According to Engelmeier, focusing on the reduction of worker’s rights would exacerbate insecurity and further divide society. She advocates for a robust minimum wage, strong employee participation in decision-making and a reliable unemployment insurance system to help individuals navigate uncertain economic times.
Grimm, a member of the German Council of Economic Experts and Siemens Energy supervisory board, had previously argued that deregulation is necessary in light of the rising unemployment rate, suggesting increased labor market flexibility through adjustments to dismissal protection, citing examples from countries like Denmark. She highlighted that while these nations typically have strong social safety nets, their employment protection laws are often less stringent.