German Cabinet approves national minimum wage; goes into effect Jan. 1 2015
{{#rendered}} {{/rendered}}
Chancellor Angela Merkel's Cabinet has approved a national minimum wage for Germany, guaranteeing workers at least 8.50 euros per hour ($11.75) starting next year.
Merkel's conservative bloc had been against setting a minimum wage, arguing instead in favor of regional pay deals by employment sector. But it agreed to establish one as part of the deal to form a government with the left-leaning Social Democrats.
Federal Labor Minister Andrea Nahles said Wednesday that a minimum wage "will provide greater fairness" in Germany and result in better earnings for some four million people.
{{#rendered}} {{/rendered}}
The proposal, which is expected to get Parliamentary approval, would go into effect Jan. 1, 2015 and employers would have two years to phase it in.