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Debate about lump sum payments not another Scholz flash in the pan

Sandra Williams by Sandra Williams
June 28, 2022
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Debate about lump sum payments not another Scholz flash in the pan
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comment

Status: 06/28/2022 01:30 a.m

The fact that the Chancellor wants to set wage guidelines for the trade unions with her emphasis on flat rates to combat inflation will only aggravate the situation.

Holger Omstead, Dr. a comment from

Ironically, a Federal Chancellor of the SPD wants to set wage guidelines for unions with his proposal for lump sum payments. He should let them know that collective bargaining in Germany is not conducted by the Federal Chancellor.

It’s not just tradition. It is also good that the responsibility for good wages and salaries lies with the trade unions and employers. The Chancellor’s guidelines make the easing of the upcoming difficult collective bargaining more difficult than easy.

Capital payment ends prematurely

In addition, lump sum payments are a questionable measure in times of record inflation. The lump sum payment ends quickly, but prices remain permanently high. The number pan flashes at the same level as Scholz’s tank discount. Billions expensive, but the relief expires quickly.

Lump sum payments are not included in the pay table, they are not dynamically adjusted and it does not help with pension entitlements either. For unions willing to fight high inflation, it would be a dangerous game to accept Scholz’s proposal. Even today, only 43 percent of employees are covered by collective agreements.

Members have a right to expect their unions to keep their incomes competitive as prices rise. If employees no longer feel adequately represented, a warm autumn threatens with wildcat attacks. Then the Chancellor should have distanced himself a little more with his freshly accidental bite of relief.

editorial note

Comments always reflect the opinion of the respective author and not the editors.

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