Germany's powerful IG Metall union gave a cautious assessment of the reform package agreed by the governing coalition on Thursday, with union chief Christiane Benner describing the outcome as "a mixed bag."
Benner welcomed the planned tax relief for lower and middle income earners, higher child benefits and the rise in the top rate of tax on high earners. She also viewed positively the measures planned to improve the skills and qualifications of workers, particularly young people.
However, Benner criticized the planned expansion of the option to hire workers on fixed-term contracts without specific justification, and the weakening of dismissal protection, calling them an "attack on employees' rights."
She also said the coalition had granted employers "an antisocial wish list" by abolishing sick notes via telephone and making it mandatory to provide a doctor's certificate of incapacity for work from the first day of illness.
Similar criticism came from Frank Werneke, chairman of the Verdi services union. "Distrust of employees and an expansion of the fixed-term contract madness do not create growth," he said.
Werneke said he regretted that the coalition had shied away from taxing large fortunes and inheritances appropriately. "That prevents an even bigger leap forward on income tax reform," he said.
