Anette Kramme fuels public dialogue about minimum wage in Georgia

What is hard work worth? This question was raised by Anette Kramme, Parliamentary State Secretary in the German Ministry of Labour and Social Affairs, during her visit to Tbilisi.

In a meeting at the Georgian Trade Unions Confederation (GTUC), Ms. Kramme discussed current challenges and precarious working conditions with GTUC president Irakli Petriashvili and many more trade union representatives. For instance, in many cases protection against unlawful dismissal is not effective in Georgia.

 

According to a President’s decree from 1999, private sector’s nominal minimum wage is only 20 GEL/month. Today, workers earn more than this but considering wages of less than 100 GEL/month, there is still an urgent need for action. In a panel discussion organized by the Friedrich-Ebert-Stiftung on 8 February, the topic of minimum wage was discussed with representatives of trade unions, employers, government and civil society. Ms. Kramme argued that introducing a minimum wage has been the right answer to precarious wages in Germany. Contrary to many expectations, the minimum wage has not led to job losses. Half a year after its introduction on 1 January 2015, there were roughly 600.000 more employees included into the German social insurance system than a year before, whilst the unemployment rate has been steadily decreasing. The German minimum wage has raised incomes for roughly 4 million German workers, and thus supported domestic consumption and economic growth. Ms. Kramme encouraged Georgia to consider the German and other international experience in its debate on reforming the minimum wage.  

On 7 February, Mrs. Kramme had a round-table discussion with civil society organisations at the FES office and learned about the most pressing problems they face nowadays. Among others, controversial reforms at Georgia’s Public Broadcaster and high poverty in the regions have been topics of that meeting.

Graphic: FES Georgia

INCREASING INEQUALITY REDUCES LONG-TERM GROWTH

The consequences of increasing economic inequality for the development of the economy have been the subject of considerable controversy for some time...

Read more

Georgia and Russia: In Search of Ways for Normalization

Since Georgia’s independence and the emergence of the Russian Federation as a successor of the

Soviet Union on the international stage, the relations...

Read more

The economic situation in Armenia : opportunities and challenges in 2017

Armenia's economic situation remains difficult: There is serious distrust in society towards the current authorities over economic

issues. After 3%...

Read more