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Germany – Staffing firms mostly stick to rules

28 May 2013

The German staffing industry introduced new pay rates for agency workers in the large metal and electrical sector last year, and despite negative media reports of wage dumping, a new survey has found that many temporary workers receive the money they are entitled to.

According to a new collective agreement that came into force in November last year, temporary workers in the metal and electrical industry are now eligible for a surcharge of up to 50%.

Although the IG Metall union, which represents workers in the industry, has continuously claimed that some staffing firms are dodging surcharges, their own research now confirms that most companies stick to the rules.  

It found that 58% of 40,000 temporary workers surveyed receive the surcharge or more. 16% of the respondents were paid wages that already topped the pay rates since the collective agreement were introduced. But the union claims that 7% of those surveyed do still not receive the pay they are entitled to. Representatives of the German staffing industry say that the number of ‘black sheep’ in the industry remains low.

Although staffing companies were expecting business activities to fall due to the higher pay rates in the staffing industry, both Adecco and Randstad reported no changes in client demand since the collective agreements have kicked in.

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