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| German Parliament Advances a National Minimum Wage | German Parliament Advances a National Minimum Wage |
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| BERLIN — The lower house of the German Parliament voted to establish a national minimum wage for the first time on Thursday — 8.50 euros (about $11.60) an hour — to take effect next year. Some lawmakers hailed the step as historic. | BERLIN — The lower house of the German Parliament voted to establish a national minimum wage for the first time on Thursday — 8.50 euros (about $11.60) an hour — to take effect next year. Some lawmakers hailed the step as historic. |
| Setting a minimum wage was a major element of the agreement Chancellor Angela Merkel, the leader of the conservative Christian Democratic Union party, struck last November to assemble a governing coalition and remain in power. The Social Democratic party insisted on the step as one of its conditions for joining the government. Many German businesspeople, who tend to support the Christian Democrats, opposed it, arguing that setting a minimum wage would deter hiring, particularly in struggling areas of the former East Germany. | Setting a minimum wage was a major element of the agreement Chancellor Angela Merkel, the leader of the conservative Christian Democratic Union party, struck last November to assemble a governing coalition and remain in power. The Social Democratic party insisted on the step as one of its conditions for joining the government. Many German businesspeople, who tend to support the Christian Democrats, opposed it, arguing that setting a minimum wage would deter hiring, particularly in struggling areas of the former East Germany. |
| In the end, the measure passed the lower house of Parliament, the Bundestag, in the last session before the summer break, on a vote of 535 to 5 with 61 abstentions. Leaders of all parties in the chamber except Die Linke, a far-left party, backed the measure. The upper house of Parliament, the Bundesrat, which represents Germany’s 16 states, is expected to give its approval next week. | |
| Germany was the last major European economy without a national minimum wage. Sigmar Gabriel, the leader of the Social Democrats and the deputy chancellor in the coalition government, spoke of a “historic day.” | Germany was the last major European economy without a national minimum wage. Sigmar Gabriel, the leader of the Social Democrats and the deputy chancellor in the coalition government, spoke of a “historic day.” |
| “For far too long, the ideas of industrywide wage agreements, fair wages, workers’ involvement in running companies and trade unions were contested,” he said. “Today is a turning point in that development.” | “For far too long, the ideas of industrywide wage agreements, fair wages, workers’ involvement in running companies and trade unions were contested,” he said. “Today is a turning point in that development.” |
| His party said that about 3.7 million people would benefit from a raise as a result of the law. It will eventually cover nearly all workers, but for certain industries with existing wage agreements, it will not apply until 2016. A national commission to be formed by 2017 will decide whether to increase the minimum the following year. | His party said that about 3.7 million people would benefit from a raise as a result of the law. It will eventually cover nearly all workers, but for certain industries with existing wage agreements, it will not apply until 2016. A national commission to be formed by 2017 will decide whether to increase the minimum the following year. |
| There are also some exceptions for those under 18, intended to protect Germany’s vaunted system of apprenticeships, and for people who have been unemployed for 12 months or more, intended to encourage businesses to hire them. | There are also some exceptions for those under 18, intended to protect Germany’s vaunted system of apprenticeships, and for people who have been unemployed for 12 months or more, intended to encourage businesses to hire them. |
| Another measure that the Social Democrats insisted upon when joining the coalition government — lowering the minimum age for retirement on a full pension to 63 — took effect for some workers this week. | Another measure that the Social Democrats insisted upon when joining the coalition government — lowering the minimum age for retirement on a full pension to 63 — took effect for some workers this week. |