Scholz warns of labor shortages on Labor Day

Status: 05/01/2023 3:44 p.m

On Labor Day, Chancellor Scholz called on companies to do more training. Targeted immigration is also important to combat the shortage of workers. DGB boss Fahimi announced tough arguments about higher wages.

At a rally of the German Trade Union Confederation (DGB), Chancellor Olaf Scholz called on companies to train more young people. “Some companies are desperately looking for skilled workers, but some companies do not train either,” said Scholz at the DGB event on Labor Day in Koblenz.

“Everyone should pull themselves together”

“Everyone should pull themselves together and do everything they can to ensure that the number of training places in Germany continues to increase,” demanded Scholz, who was greeted with applause, boos and whistles.

In Germany there will be no problem with unemployment “perhaps for more than a decade”. Instead, it must be ensured that companies find enough workers. There is already talk of a shortage of workers as a major problem for the future.

The Minister of Labor considers qualified immigration to be necessary in order to attract more skilled workers.
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Importance of immigration of skilled workers

Scholz said he had “recipes on what to do about it” and emphasized the importance of immigration for the labor market: “We limit irregular migration. We want everything to be done according to rules,” said Scholz.

“But at the same time we make sure that those who we need as workers here in Germany also have a chance in a regular way.” The new law on the immigration of skilled workers is important because it guarantees the future of the economy as well as job security and pension and social security.

The Chancellor also called for more respect for all work: not only engineers or IT specialists are needed, but also the people who work in hospitals, care facilities, supermarkets or in construction. Scholz also called on the companies to enter into collective agreements. Well-paid workers are needed to counteract the shortage of skilled workers.

The current collective bargaining rounds are marked by hardened fronts and a wave of warning strikes.
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DGB chair criticizes government

The chairwoman of the DGB, Yasmin Fahimi, criticized the fact that the federal government did not take enough care of people’s concerns. So far, the SPD-led government in Berlin has paid too much lip service. “This federal government wants to be different? Then we want to see action now!” Fahimi shouted at the DGB’s central May rally in Cologne. Among other things, the state is no longer allowed to award contracts to companies that do not pay their employees according to collective agreements.

She announced that politicians and employers would continue to face tough disputes over wages and workers’ rights in the future. “On its own and out of pure insight, nothing moves in the executive floors for the common good, for a good working environment or against climate change,” says Fahimi according to the speech manuscript. “Only with strong unions and our collective agreements can we counter the greed for profit.”

Fahimi rejected calls from parts of the Union for a restriction of the right to strike in particularly important sectors addressed to the workers: “You are so systemically important that they want to deny you the right to strike. But not so systemically important that they want to pay you decent wages,” she criticized.

The employers’ association BDA insists on a legal regulation for labor disputes.
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Employer President warns against populism

Rainer Dulger, President of the Confederation of German Employers’ Associations (BDA), on the other hand, warned politicians against populism in the labor market and collective bargaining policy, especially with regard to the minimum wage and planned collective bargaining compliance regulations.

In a Labor Day statement, Dulger said that collective bargaining requires mutual understanding and trust between unions and employers. “Against this background, interventions in the determination of the minimum wage and thus in the work of the independent minimum wage commission as well as new specifications for collective bargaining compliance regulations and legal restrictions are prohibited.”

increase in the minimum wage

The Minimum Wage Commission, made up of employer and union representatives as well as scientists, is due to present a proposal for increasing the minimum wage in the summer. Federal Labor Minister Hubertus Heil said in April that he expected a “significant increase” in the €12 minimum wage. In addition, a Federal Tariff Loyalty Act should regulate that companies that receive government contracts must pay according to the tariff.

Dulger also called for “balanced collective bargaining results” that do not fuel the wage-price spiral. “The responsibility of the social partners in these challenging times includes collective wage agreements that secure employment and do not endanger entrepreneurship,” he said. “Social partnership needs a clear demarcation from populism.”

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