The near-total abolition of so-called minijobs has been met with approval from economists and trade unions. Monika Schnitzer, chair of Germany's Council of Economic Experts, welcomed the proposal put forward by the pension reform commission. The trade union for the food, beverages and catering sector (NGG) said the proposal aligned with its longstanding position.
The hospitality industry association Dehoga, however, announced its opposition: "We will fight with all our strength to preserve minijobs," said chief executive Jana Schimke in comments to newspapers of the Funke Media Group on Saturday.
"The proposal is that minijobs should only apply to schoolchildren," said Schnitzer in remarks to the Funke papers. She welcomed that approach, arguing that for many other workers, minijobs were "a dead end." Second earners in particular had fewer incentives to increase their working hours when employed on a minijob basis. "In the end, they do not build up adequate pension entitlements of their own," she said. Women, she added, were disproportionately affected.
The catering trade union NGG said it had long been pointing to the structural problems caused by minijobs. "Minijobs have not proven to be a bridge into good employment but have cemented precarious working arrangements for millions of people," said NGG chair Guido Zeitler. "Instead of regular employment with social security coverage, they promote low incomes, a lack of pension entitlements, and an elevated risk of poverty in old age, particularly for women."
Dehoga chief Schimke pointed out that half of all employees in the hospitality sector, 1.1 million people, work on a minijob basis. "They are essential for covering evening hours, weekends, events, and seasonal peaks. It is not possible to maintain this level of service without our minijob workers," she said.
"Minijobs today are a subsidy for certain sectors," said economist Schnitzer. "I see no reason why the state should permanently support this model." The government-appointed expert commission presented more than 30 pension reform proposals this week.
One concerns minijobs, which are currently exempt from social insurance contributions. The commission proposed that minijobs be brought into the statutory pension system "without an opt-out option." Exceptions would only remain for schoolchildren.
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