German trade union chief calls for "basic solidarity income" for long-term unemployed workers

BERLIN, March 28 (Xinhua) -- Reiner Hoffman, president of the Federation of German Trade Unions (DGB), on Wednesday voiced his support for a proposal which would allow long-term unemployed Germans to earn a "basic solidarity income".

Speaking to the newspaper "Handelsblatt", Hoffman said that a recent call by the Berlin Mayor Michael Mueller (SPD) on the government to pass legislation towards this end was a "step in the right direction."

Mueller's suggestion is similar to a plan enshrined in the "grand coalition" agreement to create a so-called "social labor market" for 150,000 long-term unemployed individuals who were struggling to find work.

Hoffman, however, spoke out against a universal basic income which would be paid to all citizens regardless of their respective socio-economic status.

Earlier, the new labor minister Hubertus Heil (SPD) also reacted positively to the idea of a solidarity income, telling the newspaper "BILD" that the debate sparked by Mueller's comments was "necessary".

By contrast, Ingo Kramer, president of the Confederation of German Employers' Associations (BDA), rejected the new initiative.

"The basic idea of a basic solidarity income is nothing other than to massively create artificial employment which would not persist in entrepreneurial competition," Kramer said.

Given record low unemployment figures and strong growth, governments should instead focus on assisting firms in the reintegration of long-term unemployed workers into the regular labor market, according to Kramer. Enditem