A Recipe for Disaster?

A Recipe for Disaster?

A proposed minimum wage increase of 15 euros, as advocated by some, has been met with skepticism by the head of the Federal Association of Employers’ Associations, Steffen Kampeter. He views such a move as “a political act of self-destruction” rather than a collaborative effort between employers and trade unions.

According to Kampeter, the government should allow the social partners to work without interference, rather than imposing a predetermined outcome. He believes that the demand for a 15-euro minimum wage has complicated negotiations and may indicate a lack of trust in the ability of the social partners to reach an agreement.

The minimum wage commission, comprising representatives of employers and trade unions, is set to convene in June to discuss the 2026 adjustments. Kampeter warns that undermining the social partnership would be a breach of taboo, as it is a guarantee of economic reason and social peace in the country.

The SPD had campaigned on the promise of a 15-euro minimum wage, but Kampeter argues that such an increase would not be feasible, particularly in the context of a third consecutive recession. He points out that the tariff index of the Federal Statistical Office stands at 13.80 euros and other criteria for evaluation do not support a higher minimum wage.

While acknowledging that there are cases where the minimum wage does not suffice, Kampeter believes that this is a question of state social policy, not a matter for employers. He emphasizes that companies should base their wage payments on their own economic assessments, rather than external benchmarks.