Establishing a minimum wage
German politicians are actually considering establishing a minimum wage. It seems the story of hairdressers making 3.50Euros an hour is quite well known and they realize that they finally have to do something about it. Hairdressers are not the only people drastically underpaid in the "booming"German economy. Many people are paid quite poorly.
When the EU was established and as it has gone through all of its enlargements the laws passed facilitated among other things the business of corporations. There is no minimum wage that is European wide and many EU countries do not have minimum wages. This sets up situations where companies move to countries with the lowest wages or people migrate from their home countries to other countries where they work for less than the locals will. This army of the unemployed moving from country to country undercuts the pressure to raise salaries or to establish a minimum wage.
To solve the situation the politicians are proposing that 7.50Euros be the minimum wage. Having a minimum wage would be a good thing. Will it be a living wage, as is fought for in the United States? This remains to be seen.
When the EU was established and as it has gone through all of its enlargements the laws passed facilitated among other things the business of corporations. There is no minimum wage that is European wide and many EU countries do not have minimum wages. This sets up situations where companies move to countries with the lowest wages or people migrate from their home countries to other countries where they work for less than the locals will. This army of the unemployed moving from country to country undercuts the pressure to raise salaries or to establish a minimum wage.
To solve the situation the politicians are proposing that 7.50Euros be the minimum wage. Having a minimum wage would be a good thing. Will it be a living wage, as is fought for in the United States? This remains to be seen.
posted by paulmediaeye at 7:01 AM
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