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Germany — 5% wage increase for temporary employees

27 January 2010

The Association of Temporary Employers (BZA) and the German Confederation of Trade Unions (DGB) have agreed to raise wages for temporary employees by 5%. On 1 May 2010 wages will rise by 2.5%. A further rise of 2.5% will start on 1 May 2011. On top of these rises, a one-off payment of 80 Euro per temporary employee was agreed.

BZA representative, Thomas Baumer, told Die Zeit "this tariff agreement (Tarifvertrag) applies to 150,000 temporary employees, which is roughly one third of all temporary employees in Germany. This agreement will raise wages for temporary employees who work for BZA member staffing agencies on 1 May 2009 to 7.56 Euro in West Germany and to 6.62 Euro in East Germany."

Herr Baumer recommends to all temporary staffing agencies "to orientate themselves by the decision." He said that the DGB/BZA agreement was the "only valid tariff agreement [on minimum wages], which is legally sound."

Baumer alludes to the recent decision by a Berlin court to declare earlier, much lower, minimum wages agreements by the so-called 'Christian Unions' as null and void because the court does not recognise these organisations as unions at all.

In general, yesterday's agreement can be seen as a reaction to the recent 'Schlecker scandal' where a large drugstore chain had abused temporary employment legislation in order to cut wages in half.



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