Left party demands linking of lowest company wage to top executive pay

The Left Party is advocating for a policy that ties the lowest wages within a company to the highest executive salary, a so-called wage justice ratio. This proposal comes from party deputy Maximilian Schirmer, as outlined in a document obtained by AFP on Monday. According to the proposal, companies receiving public funds would be required to raise their lowest salaries to at least one-twentieth of the CEO’s pay. "This way, we link top salaries to the reality of employees," Schirmer stated.

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Schirmer elaborated on the proposal: “If the boss earns €880,000 per month, then employees should earn at least €44,000.” He added, “This would finally turn the wage ladder into a ladder of justice. High million-euro salaries would no longer be disconnected but grounded in the work of all employees.”

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The Left Party politician criticized the “absurd imbalance” between employee and executive pay. For example, DAX board members earn an average of approximately €3.7 million annually, 41 times the salary of an average worker, and at Adidas, the ratio is even 95 times. Volkswagen CEO Oliver Blume reportedly pays himself over €10.6 million per year, according to Schirmer. “That is more than four average earners make in their entire working lives, over €880,000 per month. What does he contribute 400 times more than other employees?” he questioned.

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Schirmer described the pay gap as “not only unjust but disrespectful to everyone who actually keeps the country running.” Therefore, either executive salaries should be capped or workers’ wages increased. He emphasized, “Justice begins with fair pay.” The Left Party deputy also calls for state funding to be restricted to companies that adhere to collective bargaining agreements. Furthermore, companies receiving public money should be prohibited from paying dividends.

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Additionally, the paper titled “Limit Greed, Reward Performance” calls for the reintroduction of a wealth tax. The proposal includes a 1% tax on fortunes over €1 million, 5% for those above €50 million, and 12% for fortunes exceeding €1 billion. “Being a billionaire is not an honorary position, ownership entails responsibility, as stated in the Basic Law,” Schirmer said during the presentation of his paper in Berlin on Monday.

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