A top executive of the German Trade Association (HDE) has expressed concerns over potential government interference in the minimum wage commission and predicts job losses in the event of a 15-euro minimum wage. Stefan Genth, the CEO of HDE, warned that an increase to 15 euros would lead to significant job losses in the industry, as companies would struggle to absorb the rising costs, exacerbated by the increase in labor-related expenses. He fears that a hike to 15 euros would also fuel the wage-price spiral unnecessarily.
Genth urged the government to refrain from influencing the commission’s decisions, emphasizing that the state should maintain a hands-off approach in setting the minimum wage. “The political influence on the minimum wage commission must stop, the state must stay out of the wage-setting process” he said. According to Genth, the commission makes independent and scientific decisions and the German constitution protects the country’s tariff autonomy, allowing the free negotiation of wages and working conditions between employers and employees.