Dialogue with Commissioner Nicolas Schmit on Emplyoment and Social Affairs in the German Bundestag - Hoofdinhoud

On 2 June 2022, the Committee on Labour and Social Affairs of the German Bundestag welcomed the Commissioner for Jobs and Social Rights, Nicolas Schmit. Fostering an “economy that works for people” is one priority of the Commission von der Leyen. Commissioner Schmit pointed out to the link between the ecological transformation and the social dimension: the ecological, green transition will be impossible, if the social dimension is not taken into account. One key topic of the exchange was the Commission proposal on adequate minimum wages in the EU (COM(2020)682). Commissioner Schmit underlined does not create a European minimum wage. Instead the proposal aims to create a framework for minimum wages and to create rules how pay policy is determined in the EU member states. He argued that low wages prevent the rise of productivity, as companies do not have incentives to invest. On 3 June 2022, the German Bundestag approved legislation to increase the minimum wage to 12 Euros per hour from the beginning of October 2022. Furthermore, Commissioner Schmit discussed with the committee members the problem of homelessness and the challenge of structural change. He said that the practice of some companies to shift jobs from strong to less competitive regions to benefit from regional EU funds is a scandal that must be stopped. Furthermore, the contributions of EU member states to the headline target of the European Pillar of Social Rights Action Plan to reduce the number of people at risk of poverty or social exclusion by at least 15 million by 2030 was discussed. Commissioner Schmit argued that poverty should be understood as both, a social and societal problem, since poverty risks to damage the cohesion of a society. Other topics were the proposal on improving working conditions in platform work (COM(2011)762), the posting of workers directive and the proposal on strengthening minimum income protection that is expected to be published in autumn 2022 and for which the consultation process has started.