Press Release No. 03/2010 IG Metall: Consistently Implement the Constitutional Court’s Hartz IV Ruling

Frankfurt am Main – IG Metall has welcomed the Federal Constitutional Court’s ruling on the standard rates for Unemployment Benefit II and standard rates for children. “The unions’ criticism has been confirmed. The standard rates must be revised and made more transparent,” said Hans-Jürgen Urban, executive board member of IG Metall. IG Metall continues to demand higher standard rates. Together with other groups, the union is calling for an increase to 440 euros. The level of social benefits has a direct impact on the labor market. “Low Hartz IV benefits put downward pressure on wages; this must end. The dramatic expansion of the low-wage sector must be stopped,” Urban emphasized.

The Federal Constitutional Court’s ruling should be used as an impetus for a fresh start in labor market policy. However, simply raising standard benefit rates and child benefit rates is not enough to achieve this. What is needed is a welfare state benefits system to replace Hartz IV. Urban also spoke out in favor of reforming the “reasonable employment” regulations with the aim of preventing wage dumping. “Even the long-term unemployed must have the right to wages guaranteed by collective bargaining agreements or in line with local standards. No one should be forced to work for poverty wages. This is also a matter of dignity,” said the union representative.

The executive board member responsible for labor market and social policy called for measures to prevent people from slipping into the Hartz IV system. For example, he suggested a one-year transitional allowance paid after Unemployment Benefit I expires. “We need an alternative, because Hartz IV has failed across the board,” said Urban.