With the resignation of the previous Federal Labor Minister and SPD co-leader BĂ€rbel Bas (SPD), attention is turning to her designated successor. The former Prime Minister of Rhineland-Palatinate, Alexander Schweitzer, is to take over the ministerial office - and is thus also taking on an extensive reform agenda.
Many of the projects are controversial. The Union is pushing for structural reforms to ease the burden on the economy, while the SPD wants to protect workers' rights and social security systems.
Retirement age and deduction-free pension
The biggest social policy challenge is pension reform. A commission appointed by the federal government presented 33 recommendations in June. The most sensitive and highly controversial points in the coalition are a gradual increase in the retirement age in line with life expectancy and the abolition of the deduction-free pension for those who have been insured for a particularly long time, known as the âpension at 63â.
After the government leaders initially promised to fully implement all proposals, support for parts of the reform is now crumbling. Schweitzer could face a test between the government line and the SPD party politics.
At the end of September, Schweitzer himself rejected the planned abolition of a pension without deductions after 45 years of contributions. "Those who work long hours must have more than those who haven't worked that long. These are not welfare state crumbs or handouts, it's not welfare either - it's performance equity. And it's part of the generational contract that should be adhered to," the SPD politician told the Germany editorial network.
Limitations, protection against dismissal, working hours
The implementation of the relaxation of labor law agreed by the coalition in July in the âRecovery and Employmentâ program is also considered particularly urgent. The ministry submitted a draft law for this to the coordination with the Chancellery last week. It is planned that by the end of 2030, employment contracts can be limited for up to 48 months, even without an objective reason, and thus longer than before. In addition, the termination of high earners whose income exceeds 1.75 times the contribution assessment limit should be made easier in return for a severance payment.
There is currently no solution in sight to a conflict that has been simmering for years and is also being disputed by trade unions and employers. The Union is calling for a move away from daily working hours towards weekly maximum working hours. There is a dispute in the coalition about the specific design. A draft from the ministry in June stipulated that longer working days would only be possible on the basis of a collective agreement. This did not go far enough for the Union. She insists on more flexibility for companies, the SPD wants to stick to protecting employees.
Modernization of the welfare state and other projects
Another major construction site is the modernization of the welfare state. A commission has developed 26 recommendations to better coordinate social benefits, digitize procedures and improve incentives to take up work. The federal government took a first step in March with a draft law for the payment of child benefit without application from 2027.
A project group from the federal government, states and municipalities is also working on a uniform social benefit system in which basic security, housing benefit and child allowance are to be brought together. According to current plans from the Ministry of Labor, a concept should be available in the fall. In addition, there is the facilitation of the immigration of skilled workers and the more business-friendly new regulation of the German supply chain law, for which Schweitzer is now responsible.
Abuse of social benefits
Schweitzer also has to implement an action plan against social benefit abuse and exploitation that Bas and Interior Minister Alexander Dobrindt (CSU) have pushed forward. The cabinet approved the catalog of measures on September 23rd.
It is aimed in particular at organized fraud structures in connection with immigration from other EU states. Municipalities should be able to take tougher action against so-called junk properties in which people are housed in poor conditions and social benefits are abused at the same time.
