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Germany — Third temporary employers' association starts minimum salary negotiations

15 March 2010

As the third German employers' organisation for temporary employment, the Interest Grouping of Temporary Employers (iGZ) today starts negotiations on minimum salaries with the Federation of German Unions (DGB).

The move comes after the recent agreements between The Federal Association of Temporary Employers (BZA) and the DGB and the agreement between the Association of medium-sized Temporary Employers and the Christian Unions (CGB).

IGZ is the third largest temporary employers' organisation in Germany. In the past, disagreements between the three organisations have prevented an overall agreement for the industry.

However, in the wake of the recent highly publicised 'Schlecker scandal' where Europe's largest drug store chain abused a loophole in the German legislation to sack staff and then re-employ them via a closely related temporary employment agency called Meniar at much reduced pay, pressure has grown on the industry to sort itself out.

Another pressure factor on the employers' association is the opening of the European market for temporary employment agencies based in other European Union (EU) countries from 2011 onwards. Eastern European agencies in particular, pay much lower rates than German agencies

The agreement is expected to contain a now so-called 'Schlecker clause', which will prevent the abuse of temporary employees by in-house temporary staffing agencies.



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