German Cabinet approves national minimum wage
German Chancellor Angela Merkel works on her documents after arriving for the weekly cabinet meeting at the chancellery in Berlin, Germany, Wednesday, April 2, 2014. (AP / Markus Schreiber)
The Associated Press
Published Wednesday, April 2, 2014 7:10AM EDT
BERLIN -- 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 favour 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.
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.