Fear of German trade unions of wage dumping

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The federal government plans to double the number of people from the Western Balkans who can get a work visa regardless of their qualifications. Unions fear cheap labor.

According to surveys by the Institute for Employment Research (IAB), there are currently 1.98 million job vacancies in Germany. In order to counteract the already chronic shortage of workers, the federal government is planning to liberalize the existing legislation on labor migration. The so-called “Western Balkans Regulation” (WBR) is also part of the overall package.

Two major changes are planned. On the one hand, it should be indefinite – the previous regulation is only valid until the end of 2023. On the other hand, the quota is to be doubled to 50,000 job seekers per year.

Work permit – without qualification

When in the second half of 2015, at the peak of the so-called “refugee crisis”, around one million refugees – mostly from Syria, Afghanistan and Iraq – came to Germany via the Balkan route, they were also joined by numerous people from six Western Balkan countries – Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia. At that time, they made about 30 percent of the asylum applications, but the chances of success were rather low: only about five percent received a positive asylum decision.

In order to avoid the costly repatriation campaigns, the government of Chancellor Angela Merkel at the time closed with these countries an agreement on the admission of deported persons and on the examination of those who wish to leave the country in their countries of origin.

Great need: Nursing staff from the Western Balkans are in high demand in Germany

In addition, the Western Balkans Regulation was passed in 2016. It provides for a contingent of job seekers who can come to Germany to work here without major bureaucratic hurdles. The special thing about it: This group of people – unlike, for example, skilled workers who are looking for a job within the framework of the Blue Card regulation – does not need to show any qualifications.

There are only two requirements: The application for a work permit must be submitted to be made to the German representations in these countries, and one must not try to apply for asylum beforehand.

A win-win situation?

The regulation should satisfy all sides. On the one hand, a regulated and facilitated immigration of unskilled or medium-skilled workers into the German labor market was made possible.

On the other hand, the measure should also relieve the difficult situation on the labor market in the countries of origin. In Kosovo, for example, the general unemployment rate is just under 21 percent, while the rate for young people even reaches around 55 percent. In Bosnia and Herzegovina or North Macedonia the youth unemployment rate is over 35 percent.

It is therefore not surprising that, based on the Western Balkans regulation that has been in force up to now, the Federal Employment Agency has issued around 260,000 basic permits and 98,000 work visas to employees from the Western Balkan countries by the end of 2020.

Fear of wage dumping

Through the planned changes are intended to increase these figures, which – as expected – is very much welcomed by the employers' representatives. After all, they put constant pressure on the government to liberalize immigration conditions for the missing workers.

The German Trade Union Confederation (DGB) is more cautious here. Labor migration is welcomed, says Evelynräder, who is responsible for labor market policy on the DGB board. But she emphasizes that the framework conditions for workers from the Western Balkans are very important: “The people who come are largely dependent on their employer. They have a residence permit that is linked to their job. This triggers fears that they, if they don't make a mark, they'll be sent back,” saysräder. In addition, they often do not speak German and are not informed about their rights. In practice, all of this leads to these employees accepting poorer working conditions – which can subsequently lead to wage dumping on the labor market, is a reason for wheels to consider.

Not “skilled workers”, but “workers”< /h2>

Three quarters of workers from the Western Balkan countries work on construction sites, in the catering trade and in nursing for the elderly and sick, 44 percent in construction alone. These are mostly part-time jobs with relatively low wages.

Three quarters of workers from the Western Balkans work on construction sites

Although the federal government justifies the reform of the labor law with regard to foreign workers as counteracting the shortage of skilled workers in the country, the Western Balkans regulation deviates from this, as no qualification is required to obtain a work permit.

According to the DGB assessment, it is not at all about recruiting skilled workers, but about recruiting workers for simple jobs. “It's purely a job creation program for the benefit of employers, who can find workers this way, but who they can get rid of quickly if necessary,” saysräder.

Precariat on construction sites

This is particularly pronounced in the construction industry. The main association of the construction industry canceled the extension of the decades-old collective agreement last year. Workers can now be paid a legally guaranteed minimum wage of 12 euros an hour, which is less than previous hourly wages, which averaged between 13 and just under 16 euros on construction sites.

In this way, employers can put pressure on anyone who demands higher wages – there is always cheaper labor available. At the same time, they need not fear lawsuits: workers from the Western Balkans are a particularly vulnerable group, they do not know their rights, and for many even these worse working conditions are acceptable compared to the situation in their home countries. In addition, there are practically no effective state controls.

Employee protection and collective bargaining autonomy

“We fear that this will put pressure on the working conditions of all employees in the construction industry. It is becoming more difficult, good conclude collective agreements, and without them a dumping program to reduce wages will simply result,” warns Evelynräder from the DGB.

“It is becoming more difficult to conclude good collective agreements,” fears the DGB

They see the solution German trade union confederation in further amendments to the Western Balkans regulation. One of the most important concerns is the ability to change employers without having to reapply for a work permit – as is the case for other foreign workers.

According to the current regulation, the application for a work visa must be made in the employee's country of origin, the visa is ultimately issued for a specific activity. A change is possible, but you must apply to the Federal Employment Agency again. This is complicated for the vast majority of employees, and many are not aware of this option anyway.

In addition, the unions are demanding that employment based on the Western Balkans regulation should only be possible where collective agreements exist. On the one hand, this would protect the employees themselves, and on the other hand, the unions' collective bargaining autonomy would not be undermined.

Evelyn Rinder from the DGB has a clear message for people in the countries of the Western Balkans who are looking for work in Germany: “Inform yourself about your rights and ask for help if necessary. You don't have to accept everything that is offered to you. Employees really do have rights here.”

Skilled workers urgently needed