PRESS STATEMENT Expanding the mini-job income limit is disastrous

IG Metall welcomes the increase in the minimum wage but criticizes the plan to link the threshold for “minijobs” to the minimum wage in the future, which amounts to an expansion of precarious employment. The cabinet plans to approve both measures today. Christiane Benner, Second Chair of IG Metall, comments :

“The expansion of mini-jobs is a high price to pay for a 12-euro minimum wage. Mini-jobs lead to poverty in old age, especially for women. That is why the planned expansion of the mini-job threshold is disastrous. Instead, the focus must be on consistently increasing women’s labor force participation—within the framework of regular, well-protected employment relationships. This is the prerequisite for a self-determined life and a sufficient pension—and it strengthens the social security funds. It has been scientifically proven that a long-term mini-job leads to a loss of skills and thus diminishes hard-earned qualifications.* The federal government has set itself the goal of achieving gender equality by 2030. Today’s cabinet decision is a step backward on this path.”

The IG Metall union’s organizational sector demonstrates how things can be done differently: According to data from the Federal Employment Agency, full-time employment among women rose by 8 percent between 2013 and 2020 in the IG Metall sector, compared to just 5 percent across the entire German economy. Part-time employment rose by 23 percent, compared to 24 percent across the entire economy. Thus, the IG Metall union has been more successful in creating full-time jobs for women than other sectors. One reason for this is collective bargaining agreements, under which employment contracts subject to social security contributions always take precedence, and “mini-jobs” are approved only at the express request of the employees.

Ver.di is calling on the federal government to halt the expansion of mini-jobs. IG Metall supports this call (Mini-jobs – ver.di); Jörg Hofmann, First Chair, and Christiane Benner, Second Chair, are among the first signatories.

*https://www.bmfsfj.de/resource/blob/93862/4ba520100f0bde228598d1271c32cfd4/frauen-im-minijob-data.pdf