French minister slams Germany’s “unfair” wages

TheLocal.fr ^ | 19 Sep 2013 17:21 GMT+02:00 | Ben McPartland

[Olog-hai]

France’s consumer affairs minister Benoît Hamon has slammed Germany’s policy of keeping pay artificially low for being “unfair” on France.

Speaking to the BBC on a visit to an Optic 2000 factory, which creates eyewear in France, Hamon said “some countries in Europe are getting around employment directives and underpaying their workers.”

Hamon lamented Germany’s wage policy, which has helped keep the cost of German products down compared to “Made in France” goods.

“I want Germany to have a social policy where competitiveness doesn’t rely on jobs paying €400 [£336; $534] a month,” he said. …

[Nifster]

Ah yes the planned economy is such a wonderful thing

[SeminoleCounty]

I doubt Germans are only paying $534 per month for jobs. Their minimum wage is much higher than the US....and Germany has some of the best employee benefits in the world....usually mandated by law

I think this French guy is full of it. France must be really Socialist to complain about Germany’s low wages

[Sherman Logan]

“I want Germany to have a social policy where competitiveness doesn’t rely on jobs paying €400 [£336; $534] a month,” he said

That's much less than half the US minimum wage.

[wolf78]

I doubt Germans are only paying $534 per month for jobs.

What Hamon is referring to is a so-called "400 Euro Job". Wikipedia says:

Minor employment (also called "mini-jobs" or "400-euro jobs") is according to German social security law an employment relationship with a low absolute level of earnings (slightly salaried employment), or employment relationship of short duration (short-term employment). In Germany such employment is exempt from social security, and there are even special features in the income tax law."

These are usually second jobs or part-time jobs for moms. I believe Harmon's point is that under some circumstances this is a subsidy for employers, which don't have to pay their share for e.g. health insurance costs, when e.g. a marginally employed wife get benefits through her husband's health insurance, driving up health insurance costs and lowering disposable income for everyone else.

Their minimum wage is much higher than the US....

Impossible. Germany has no compulsory minimum wage. Most companies in Germany match the minimum wages for their industry agreed upon by collective bargaining. One example for a rather high paying industry would be metal workers (starting at 8.50 euros for for temporary workers, 11 for regular workers), but in some cases wages they are much lower.