Yasmin Fahimi, the chairwoman of the German Trade Union Confederation (DGB), has issued a warning regarding the potential consequences of abolishing block partial retirement and making it easier to use temporary employment contracts. The proposal to abolish block partial retirement had been suggested by the Age Security Commission, while the relaxation of temporary contracts was agreed upon by the coalition committee in early July.
Fahimi stated in interviews with partner newspapers belonging to the New Berlin Editorial Group that combining these two changes would lead to the “precariousness of young employees in this country,” labeling the situation as “unacceptable.”
She deemed the scrapping of block partial retirement completely unnecessary and inappropriate at this time. For both unions and employers, this system serves as a socially acceptable method for reducing employment numbers. The DGB chairwoman noted that the alternative to block partial retirement is negotiating a social plan, which generally stipulates that the most recently hired – typically the younger workers – are the first to be let go.
Fahimi is also critical of the intention to simplify contracts that lack a specific objective. She argued that the ability to maintain a temporary contract for four years without providing a stated reason amounts to nothing more than a four-year probationary period. According to the DGB head, young employees lacking stable contracts would then find it more difficult to secure a rental agreement or a home equity loan.
