The SPD in Munich City Hall wants to introduce a minimum wage of 16 euros for all employees in the city. In the future, no one should earn less at the municipal subsidiaries either. The lower wage limit of 16 euros should also become a decisive criterion when awarding municipal contracts. The SPD wants to start with the contracts with security and cleaning companies. The rest of Munich’s economy should follow suit as voluntarily as possible and receive a certificate as a fair employer.
Across Germany, the minimum wage is currently €12 and is set to increase to €12.41 on January 1st. But nobody in Munich could live with such a salary, said Simone Burger and Christian Köning at the presentation of the initiative. Mayor Dieter Reiter (SPD) had already announced the Munich minimum wage at the trade union rally on May 1, 2022, but legal difficulties delayed the project. The city council is now due to make the decision in the personnel committee on July 19. The Greens, as coalition partners, are fundamentally in favour. But in the town hall it can be heard that they only want to agree when the costs have been calculated.
With the city as an employer, the minimum wage will have more of a symbolic meaning. According to City Councilor Burger, there were only eight employees, especially in the kitchen area, who had previously earned less. It is not known how many of the municipal subsidiaries are below the limit. The SPD city councilors expect a big lever in the future when awarding contracts: 459 run with cleaning companies, 153 with security companies. In both sectors, the standard wage is over 12 euros, but under 16 euros. If companies pay this Munich minimum wage in the future, they should have competitive advantages. Exclusion from the award due to low wages is not legally possible.
With its attitude, the city also wants to be a role model for the free economy. The Verdi services union is calling on companies to join. This is not a luxury requirement, but “an emergency measure to prevent poverty despite work,” said Munich Verdi boss Heinrich Birner.