Press Release No. 46/2010 IG Metall Calls on Social Security Funds to Take Action

Frankfurt am Main – IG Metall has called on social insurance agencies to immediately act on the ruling by the Federal Labor Court (BAG), which denies the union the right to negotiate collective bargaining agreements. “The ruling is good for the social security funds. Now they must secure the funds they have lost due to wage dumping,” said Hans-Jürgen Urban, executive board member of IG Metall, on Wednesday in Frankfurt. The union official urged the social security funds to act quickly and not to give away money in the interest of the insured.

According to IG Metall’s social security expert, social insurance agencies could claim social security contributions for the past four years. This would generate around half a billion euros per year in additional revenue. “The CGZP case makes it clear just how much revenue the welfare state loses due to low wages,” said Urban. For the affected temporary workers, the Federal Labor Court’s ruling results in higher pension entitlements and, if necessary, increased unemployment benefits and sick pay. Urban announced that IG Metall would continue to advocate on the boards of the social insurance agencies, as it has done in the past, to secure the entitlements of those affected.