Yasmin Fahimi, the chairwoman of the DGB (German Trade Union Confederation), has rejected a proposal made by SPD leader and Finance Minister Lars Klingbeil. Klingbeil suggested expanding the use of fixed-term employment contracts for companies that invest in innovation.
Speaking to the “Süddeutsche Zeitung”, Fahimi argued that companies investing in innovation should be considered a given and that employees should not receive any extra premiums simply for working.
Klingbeil had previously mentioned, during a reform speech at the Bertelsmann Foundation in late March, that he could envision making longer-term fixed-term contracts available for companies making such investments, similar to how this is already practiced with start-ups. His underlying hope was that this mechanism would encourage more businesses to hire staff despite economic uncertainties.
However, Fahimi countered that investment only happens when a company expects a functioning business model behind it. She stated that if such a model is not present, the specifics of unemployment protection are irrelevant.