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A third could miss out on minimum wage rise

More than a third of low-paid workers in Germany could miss out on the proposed nationwide minimum wage because of exceptions being put forward by employer organizations and Conservative politicians.

A third could miss out on minimum wage rise
The new wage rules are to begin next year - but the coalition is still working out the details. Photo:DPA

A nationwide minimum wage of €8.50 an hour is due to be introduced in Germany in 2015.

But research released on Monday by the Hans-Böckler Foundation, a centre-left think-tank, found around two million of the more than five million workers who would otherwise have their wages boosted, would miss out on wage rises under plans to exclude certain sectors and workers.

Head of the Christian Social Union (CSU) Horst Seehofer said in December that seasonal workers and pensioners should be excluded.

According to the report, such exceptions could turn the minimum wage into a "Swiss cheese" policy – full of holes – and pose a serious threat to the job market.

The proposed excluded groups are working pensioners, school and college students, and so-called "marginal workers" or "mini-jobbers" who work one or more low-paid jobs with very short hours.

And the study, done by the Foundation's Institute for Economic and Social Science (WSI), found that of the 5.25 million workers who earned less than €8.50 per hour in 2012, two million come from the groups to be exempted from minimum wage under the proposals.

Even if the "marginal workers" were not exempt, the proportion of low-earners to be excluded would still be nearly a quarter, the study found.

WSI head Reinhard Bispinck said these exceptions would undermine the purpose of the minimum wage and could result in the creation of a new, distinct "low-pay sector."

The study also warned that the plans run the risk of creating a system where employers deliberately replace minimum-wage workers with those who are exempt to cut their costs.

And the effects could hit some sectors more than others, the report said.

Fifty-six percent of "mini-jobbers" and 52 percent of pensioners, school and college students who earn less than €8.50 per hour work in  the same four industries – hospitality, retail and company support services like cleaning and telemarketing as well as "general services" such as launderettes and hair salons.

But the positive effects of a definitive minimum wage without caveats or exemptions have been well proven by successive academic studies, Bispinck said.

"An across-the-board minimum wage is a useful tool to curb negative developments in wages and the job market at large," according to Bispinck. "But it really does have to be for all types of employment."

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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