Craftsmen Call for Lower Labor Costs, Less Bureaucracy, and Enhanced Training Support
Economy / Finance

Craftsmen Call for Lower Labor Costs, Less Bureaucracy, and Enhanced Training Support

Jörg Dittrich, the president of the Central Association of German Crafts (ZDH), is calling for a reduction in labor-related additional costs, stating that without such a reduction, Germany will lose its competitive edge. Speaking on the sidelines of a cabinet meeting in Neuhardenberg to the “Welt” news channel, he cited the predominantly poor sentiment within his industry. While noting that the mood in most businesses is generally negative, he expressed hope that the federal government would take these concerns seriously. Although a single meeting does not guarantee immediate results, he described the discussions as positive, allowing for clear identification of existing obstacles rather than avoidance.

Dittrich referred to lowering these personnel overheads as “the biggest hurdle that everyone prefers to ignore.” He specified that a one percent reduction in additional labor costs would equate to approximately ten billion euros-funds that would currently not be available to employees and businesses. He noted that Germany is currently three percent above its own set target for these costs, emphasizing that tackling this issue is crucial for maintaining competitiveness.

In addition to labor costs, Dittrich also stressed the need to reduce bureaucracy, calling for an “atmosphere of enablement.” He argued that change doesn’t always require new legislation, but rather a cultural shift emphasizing what is possible. As examples of areas needing reform, he pointed to the European-level packaging regulation, the ban on Sunday baking, and the mandatory requirement for receipts, suggesting that fast, cost-free measures could be implemented in these areas.

For his third demand, Dittrich requested greater political support for the dual vocational training system. He highlighted that the craft sector has successfully increased training numbers despite the economic downturn. He argued that this growth deserves not only recognition but also financial backing, particularly for education centers and inter-company apprentice instruction. Finally, he underscored the importance of integrating young immigrants and training a large number of youth as a focus for the nation’s future.