ENERGY/ GLOBAL WARMING EFFECTS
Ice melting: new oilfields and seaborne trade to discover?
Some member states of European Union don’t compel guaranteed minimum wage (GMW) as Germany but not much longer. Those countries have a competitive advantage and flexibility labor market for unskilled workers who find easily jobs. But there is no social security benefits for the ‘poor workers’.
The Conservative Chancellor Angela Merkel forms a ‘coalition’ with the Social Democrats which “will not conclude negociations without a universal legal minimum wages” .
In 2015, the German government will introduce a national minimum wage of €8.50 an hour. What will be the consequences? - Increase the wages by 17% for all the 6 million German salaried . A positive effect of this could be an increasing consumption and so economic growth. But a negative effect as the inflation could decrease the purchasing power. - Cause job losses: salaries with wages below €8.5 are 27% in Eastern Germany, 15% in Western Germany, half of those salaries work in service to consumer sector. This economic sector and the unskilled workers will probably know an increasing unemployment (relocation of the activities, independent workers...). But this negative effect is not certain (it will decrease illegal job and independent workers maybe) .