The approximately 160,000 employees in slaughterhouses and meat processing companies will in future receive a gradually increasing minimum wage. The new lower wage limit starts at 10.80 euros per hour, as announced by the food-enjoyment-restaurants union (NGG) and the food industry association (VdEW). From January 1, 2022, it should then be 11.00 euros, from December of the coming year 11.50 euros and from December 2023 finally 12.30 euros per hour. The NGG had already announced an agreement in the wage dispute on Thursday evening, but details had not yet been published. According to the VdEW, the first stage of 10.80 euros is now expected to take effect from August 1, when the general binding effect comes into effect.

Work contracts prohibited

The deputy NGG chairman Freddy Adjan stated that tens of thousands of people would benefit from the new industry minimum wage and would get “noticeably more money for their back-breaking jobs”. After the prohibition of work contracts with the labor protection control law initiated by Federal Labor Minister Hubertus Heil (SPD), the new industry minimum wage is “a second very important component for proper conditions in the meat industry”. The VdEW emphasized that, compared to the current statutory minimum wage, many companies are facing a 30 percent increase in a period of two and a half years. This means that many companies in the meat industry are “expected to do a lot”.

US President Joe Biden wants to pay government contract workers more money. Their minimum wage is to be increased from the current $ 10.95 to $ 15 an hour. A high-ranking representative of the government said that the president would issue a corresponding order later in the day. Those who currently only get the minimum can look forward to a 37 percent wage increase. However, the adjustment should be made gradually and not in one fell swoop.

Changeover deadline until March 2022

It is planned that the new minimum wage will be reflected in all new contracts from January 30, 2021. All existing contracts must also be converted by the end of March next year. From 2023, the salaries will then be adjusted according to the inflation rate. The decree also aims to standardize wages for all government contract workers. Because up to now there have been much lower hourly rates for those who get tips and only in this way reach the minimum wage.

“Five million people working for government”

The government was initially unable to say exactly how many people will benefit from the increase. White House officials said it would put “hundreds of thousands of workers” in a better position and stop living in poverty despite having a full-time job. According to figures from the Brookings Institution last year, an estimated five million employees work for US government contractors. The regulation primarily affects employees of companies that provide services on behalf of the government. This includes, for example, cleaning staff, maintenance staff, craftsmen or canteen employees.

National minimum wage at $ 7.25

The Biden government is confident that increased taxpayer costs will be offset by increased productivity. During the election campaign, the US president had promised to campaign for a nationwide minimum wage of 15 US dollars per hour. An attempt by his Democrats to enforce a corresponding law with the latest Corona stimulus package had failed in the Senate. The national minimum wage is currently $ 7.25. There are also higher limits in some states. The economically strong New York, for example, has already decided to gradually increase the minimum wage to $ 15.