The changing labour market in Germany in times of crisis - Solidar

07
“Temporary agency work was
promoted by the Hartz
regulation in Germany and
altered in character during the
last years. It is no longer meant
to cover certain production
peaks but has developed as a
regular form of employment at
the company level.”
Research shows that there is a strong link between ‘mini-jobs’ and low-pay. In general,
‘mini-jobs’ are low-pay jobs. In sum, employment in the low-pay sector increased in
Germany during the ‘boom’ in 2007. At the same time hourly gross wages decreased 11 .
By the end of 2007 6,5 million people - which is every fifth employee works for wages
below low pay threshold of € 9.62 in West Germany and € 7.18 in East Germany. Every
third in the low pay sector has wages below € 6 per hour. Interestingly, more than half
of the low pay employees have completed a formal vocational training. Here the lack of
a statutory minimum wage in Germany is striking.
Temporary agency work was promoted by the Hartz regulation – a legislative package
dealing with labour market reform and a revision of unemployment benefits - in Germany
and altered in character during the last years. It is no longer meant to cover certain
production peaks but has developed as a regular form of employment at the company
level. In Germany, two forms of temporary work exist: temporary agency work, which is
regulated by the Temporary Employment Act (Arbeitnehmerüberlassungsgesetz/AÜG),
and the temporary assignment of workers by one employer to another in the same craft
or industry given that there exists an according collective agreement between the social
partners. The latter type of temporary work is based on the assumption that
establishments in the same sector of economic activity are affected in different ways by
an economic downturn and where in one establishment layoffs may be considered, in
another staff absence needs to be covered. The bargaining partners both promote
collective agreements on temporary staffing pools at local or regional level as alternative
measures to layoffs, short-time work and temporary agency work. However, whereas
temporary agency work has been increasing during the recession, the implementation of
the latter form of temporary work is still poor.
The Hans-Böckler-Foundation provides further statistical data and background information
on precarious work 12 (Graphs 1 and 2) as well as low pay and minimum wages in
Germany in a special service called “Böckler Boxen” 13 (Graphs 3 and 4). Moreover every
two weeks, the Hans Böckler Foundation's information service (Böckler Impuls)
compiles concise analyses and reports on labour, economic and social issues written
for people who are short of time. It evaluates scientific sources and sound opinions 14 .
Graph 1: Reduced income – atypical employment
Workers and
employees...
in regular employment *
1992
2005
80,5%
65,5%
with atypical contracts
1992
2005
19,5%
34,5%
In the group of
those with atypical
contracts...
fixed-term contracts
part-time work
1992
2005
1992
2005
3,5%
6,1%
14,5%
18,8%
in limited part-time work
1992
2005
2,3%
7,9%
in temporary agency work
2001 **
2005
1,7%
3,7%
* Full-time, no fixed-term employment, not in limited part-time employment, no temporary agency work
** First year for which data are available.
Source : Socio-economic Panel 2007
SOURCE: HTTP://WWW.BOECKLER-BOXEN.DE/4792.HTM
11
Thorsten Kalina/ Claudia Weinkopf (2009) Niedriglohnbeschäftigung 2007 weiter gestiegen: zunehmende
Bedeutung von Niedrigstlöhnen. Duisburg: Inst. Arbeit und Qualifikation. IAQ-Report, Nr. 2009-05.
12
See the Hans-Böckler-Foundation’s website: http://www.boeckler-boxen.de/1920.htm (in German).
13
See http://www.boeckler-boxen.de/2690.htm (in German).
14
See http://www.boeckler.de/32006.html.