TMV in alliance with the German Retail Federation (HDE) against a 15-euro minimum wage

When lobby groups come together, it is nothing unusual. However, when representatives of such diverse sectors as taxi drivers, retailers, hairdressers, and farmers appear with almost identical arguments, it is worth taking a closer look.

TMV President Thomas Kroker (2nd from left), TMV Chief Executive Patrick Meinhardt (right), and TMV Office Manager Nico Höttges (left) with the Chief Executive of the German Retail Association. | Photo: TMV
TMV President Thomas Kroker (2nd from left), TMV Chief Executive Patrick Meinhardt (right), and TMV Office Manager Nico Höttges (left) with the Chief Executive of the German Retail Association. | Photo: TMV

For the Taxi and Rental Car Association of Germany (TMV) has drawn a clear line together with the German Retail Federation (HDE): Against a politically determined minimum wage of 15 euros – and for collective bargaining autonomy. At a meeting in Berlin, where TMV President Thomas Kroker, Managing Director Patrick Meinhardt, TMV Office Manager Nico Höttges, and HDE Head Stefan Genth came together, the concern was palpable: A nationwide minimum wage of this amount, according to the core message, is not sustainable for many medium-sized businesses. The sector is already groaning under increased energy costs, inflation, and competition with international platform providers.

The criticism is directed at politics

The minimum wage, according to Kroker and Meinhardt, is the responsibility of the independent Minimum Wage Commission – not of coalition negotiations or day-to-day political decisions.

"Politically determined minimum wages are poison for our country,"

the TMV approvingly quotes a joint advertisement by several associations that was recently placed in the Bild newspaper. There is fear of a domino effect: bankruptcies, rising unemployment, and burdens on social security systems.

According to TMV, the taxi industry would be particularly affected. Unlike other sectors, taxi and rental car businesses cannot simply raise their prices themselves – they are bound by municipal tariffs. For comprehensive wage adjustments, new negotiations at the district level would be needed nationwide. An effort that would overwhelm many smaller entrepreneurs.

Moreover, the association points to a barely noticed side effect: Medical transport services, which are an important part of the business for many taxi companies, would become more than 16 percent more expensive according to TMV's calculation. Consequently, statutory health insurance funds would have to raise an additional 1.32 billion euros – with implications for all contributors.

The "Honorable Merchant" Does the Math

Despite the bold formulations, the tone remains factual. The association sees itself as a representative of the "Honorable Merchant" and explicitly emphasizes: Good work deserves good pay. They are not against fair compensation, but against wages that are set for political reasons. The autonomy of collective bargaining is a pillar of the social market economy, which they wish to remain faithful to.

The appeal is directed at the politicians, especially at Gitta Connemann, designated State Secretary in the Federal Ministry of Economics and Small Business Commissioner of the Federal Government. The TMV expects the CDU to remember its own economic policy principles—and not allow the middle class to be made liable for a political price tag.

Furthermore, the "Bild" advertisement states:

“With regard to the agreement in the coalition contract and the ongoing debate about a political increase in the minimum wage to 15 euros per hour, we, as major employer industries, urgently warn politics against further - also indirect - political interventions in the independent decision-making of the minimum wage commission and its fatal consequences for our country's competitiveness. Based on the experiences from the year 2022, solely politically motivated increases in the statutory minimum wage must be a thing of the past. The minimum wage has increased by more than 30 percent since 2022. Many employers, especially in the middle class, can no longer financially cope with this today. The result is noticeably rising unemployment as well as many insolvency reports. In addition, there are the prospectively rising non-wage labor costs.”

Are 15 euros too much?

The alliance with other industries shows: The debate about the minimum wage is more than a social issue. In the end, it is not only about the responsibility towards the companies - but also towards the people who work there every day.

Content automatically translated.
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