According to information from the Bauen-Agrar-Umwelt industrial union (IG Bau), the main customs office in Munich initiated 148 preliminary investigations in the construction industry in the Munich region in the first half of last year alone. According to the trade union, the financial control of clandestine employment uncovered illegal employment, social fraud and minimum wage violations during its inspections. Overall, the amount of damage determined by Munich Customs due to unpaid taxes and social security contributions on construction was around 1.7 million euros. In the comparable period of the previous year, the main customs office in Munich initiated 146 preliminary investigations on the construction site.
The construction union relies on figures that the Federal Ministry of Finance has communicated to a request from the SPD member of the Bundestag Bernhard Daldrup. “The high number of investigations shows that criminal methods in construction are also part of everyday life in our region,” said Harald Wulf, district chairman of IG Bau Oberbayern. The violations actually uncovered are just the tip of the iceberg. In addition to many “clean working companies” there are still dubious companies for which wage dumping and illegal employment in construction contracts are part of the business model.
Inflation and high interest rates lead to further cost pressure
Wulf warns of a further increase in illegal machinations: “High inflation, rising construction interest rates, high material and energy costs – everything leads to increasing cost pressure in construction,” said the union boss. “Dubious bosses will therefore now try even harder to reduce their costs through wage dumping. And they will come up with even more tricks to evade taxes and social security contributions. This puts employers who adhere to the construction collective agreement under further pressure .”
Against this background, IG Bau is calling for significantly more controls and a stronger customs presence on construction sites. “We also want clean construction sites in the Munich district,” said union boss Wulf. “The state must ensure that criminal practices on construction sites no longer stand a chance.” In addition, companies that have become conspicuous would have to be excluded from public procurement. “We need a ‘register of sins for undeclared work’ – a public file listing the companies whose business model is based on illegal employment and wage cheating,” says Wulf.