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Germany – Minister for Economics changes tune on temporary work

11 September 2014

In a swift departure from earlier comments criticising the recruitment industry, Sigmar Gabriel, Minister for Economics, commented: “Germany is doing well, and temporary work is one of the reasons for this positive development.”

Writing in the “Recruiter” magazine published by Germany’s Federal Employers’ Association of Personnel Services (BAP), Mr Gabriel, a member of the German Socialist Party (SPD) believes that the merits of temporary work are most visible in two areas: “Temporary workers are integrated into the labour market and act as a flexible buffer for the economy.”

“In key areas of the German economy, especially the industrial sector, which has been exposed to tough international competition and large fluctuations in orders, temporary work fulfils an important function.”

Mr Gabriel explained that the importance of the temporary recruitment industry for the labour market is that: “Temporary work can also provide concrete perspectives and, importantly, help people get professional experience. It also offers low-skilled, unemployed, young professionals and professionals returning to the labour market a chance to get their foot in the door of the labour market.” 

In his article, Mr Gabriel acknowledges what he calls “individual misbehaviour” in the temporary recruitment industry, which has tarnished the image of the entire industry. He feels, however, that it has been a huge achievement that the responsible temporary recruitment agencies have been able to counteract undesirable developments.    

“Today, temporary work is doing more and more of what it was intended to do, integrating people into work and serving as a flexible instrument of the German economy. Above everything else, it has contributed to bringing together the BAP and trade unions,” Mr Gabriel added.

With regard to the coalition government’s planned changes to temporary work, Mr Gabriel expressed hope that: “The reforms on temporary work, which the political parties have already agreed, will be viewed by the industry as an opportunity. Making sure that everyone is complying with the “rules of the game”, will ultimately benefit those who take temporary work seriously.” 

Mr Gabriel’s view of the staffing industry, however, has not always been so positive.

Last year prior to the coalition discussions between Angela Merkel’s Christian Democrats (CDU) and the SPD, the Socialists wanted to restrict the use of temporary workers and amend the temporary worker legislation to make is more difficult for companies to hire workers on fixed-term contracts, reports the Frankfurter Allgemeine.

In November 2013, Werner Stolz, CEO of the Temporary Workers Association (iGZ) commented: “It’s a mystery to me how Mr Gabriel comes to claim that temporary work is poorly paid and has destroyed jobs.”