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Brussels takes action against German minimum wage

The European Commission starts an infringement procedure concerning the application of the minimum wages for truck drivers in transit. 

The European Commission does not agree with the German minimum wage law in its current form and initiated infringement proceedings against Germany on Tuesday. Brussels’ disagrees with the rule that foreign companies should pay the German minimum wage to drivers on transit journeys. The associated documentation requirements create disproportionate administrative barriers and will penalize foreign transport companies.




Immediately after the German minimum wage act was introduced transport companies from mostly Eastern Europe, but the Netherlands and France too, complained about the new rules. Companies are especially frustrated about the fact that the German authorities require extensive documentation. And anyone who violates the minimum wage legislation is threatened with serious fines under German law.

"Restrictions of the freedom to provide services and the free movement of goods"
After months of negotiations with the federal government, the European Commission has now informed Berlin, what they do not like about the German minimum wage law. The requirement that for all transports, on German roads and rails and without distinction, the minimum wage has to be paid is contrary to the free movement of goods and services. It is disproportionate and unjustified that Germany demands the payment of the minimum wage for international traffic. This restricts European transports in a disproportionate manner. And in order to prevent wage dumping on German roads more proportionate measures are available to safeguard the social protection of workers while they are less restrictive of the free movement of goods.

Michael Nielsen, the General Delegate of the IRU, demanded an immediate stop of the minimum wage for international transport in Germany until the infringement procedure has been completed. "I hope that other EU members shall not implement similar measures." Christian Democrats’ transport spokesperson in the European Parliament, Markus Ferber, welcomed the Commission's decision. The federal government should take the opportunity to revise the Minimum Wage Act. Or else this case will lead "to return to the national fragmentation, custom barriers and protectionism," added the FDP Member of Parliament Gesine Meissner.

Michael Cramer, Greens, and the Chairman of the Transport Committee, wishes that the Commission took “equally consistent action against wage dumping”. His colleague, Mr Tierry Reintke criticized: "Instead of using a sledgehammer to crack a nut, the EU Commission should be tougher on the undermining of minimum wages." The German government has two months to address the Commission's concerns. After that, the Commission may bring an action before the European Court.

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