Germany’s largest social welfare association, Sozialverband Deutschland (SoVD), has voiced strong opposition to calls for a weakening of employee protection laws, following recent figures indicating unemployment has surpassed three million for the first time since 2015. SoVD Chairwoman Michaela Engelmeier described the rising unemployment rate as “a clear warning signal” and criticized suggestions that increased labor market flexibility through relaxed dismissal protections would be a constructive response.
Engelmeier argued that a greater emphasis on promotion and qualification is now needed, particularly for young people. “It is crucial to support young people in completing their education and gaining access to training to ensure long-term prospects” she stated. She contends that reducing worker’s rights would exacerbate insecurity and further divide society. “A minimum wage resistant to poverty, strong co-determination rights and a reliable unemployment insurance system are vital for helping people navigate uncertain times” she added.
The SoVD’s comments came in response to remarks made by economist and Siemens Energy supervisory board member Veronika Grimm. Grimm, referencing the increased unemployment figures, had advocated for deregulation to enhance labor market flexibility. She pointed to models in countries like Denmark, where, while unemployment benefits are robust, dismissal protection is less stringent. She suggested that strengthening flexibility, including potentially revising dismissal protection laws, could be beneficial.
