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World's largest HR services company welcomes temporary staffing wage agreement in Germany


Adecco CEO Jérôme Caille: "A new era of flexible working has dawned in Germany, bringing substantial benefits for employees, employers and the national economy. This long awaited stimulus to Europe's largest economy is sure to be felt beyond Germany's borders".

Chéserex, Suisse, Jun 27, 2003 

Jérôme Caille's words followed approval by Germany's National Association of Staffing Services Companies (BZA) of the collective bargaining agreement on the key element of equal pay, negotiated with the German Federation of Labor Unions (DGB).
 
After five months of negotiations, the members of the BZA approved the resulting compensation, framework and industry-wide collective wage agreement almost unanimously with only one member voting against it and one abstaining. This wage agreement becomes final when approved and signed by the member unions of the DGB on 21 July 2003, the date the reply deadline ends.
 
 "We are confident that this decision will give a major boost to our industry and to Adecco in this key market," continued Jérôme Caille, "History has shown that legislative change in favour of more flexible working practices generates significant growth potential for our industry - as shown by our own experience in Spain and particularly in Italy, where liberalization of temporary employment in 1997 laid the foundations for us to grow to become a key employer and the clear market leader   Our objective is to lead the evolution of  our industry in Germany as well, where we can expect strong growth in the coming years ."
 
Jérôme Caille went on to stress that the advantages will be felt far beyond the temporary staffing industry or Adecco.  First of all employers will feel the effect of the new increased flexibility on their business; and the fact that the agreement has been arrived at with the full cooperation and involvement of the trade unions shows that the interests of the workforce have been actively taken into account from all perspectives.  "And again, our experience in other countries shows that temporary work often leads to permanent employment, giving an overall boost to the labour market in general".
 
The negotiations achieved a great deal more than was anticipated even half a year ago. A prudent and deliberate set of rules was created that offers a maximum of flexibility for every kind of staffing requirement, while simultaneously leading to greater overall employment. It also gives staffing services, customers and associates alike a sound and reliable planning basis for the next four years. It will also afford greater worker continuity, thanks to improved motivation stemming from a uniform wage system. All this will simply boost Adecco's service performance.
 
"Temporary staffing could have accomplished more in the past, had legislative rules and regulations not stifled the needed flexibility," commented Elmar Hoff, CEO of Adecco Germany. "This makes us all the more pleased with the unmistakable decision voiced by the BZA association's members. Such overwhelming approval lends a positive signal to this temporary-staffing wage agreement and underscores just how momentous these negotiated results are for the industry," Hoff added.
The new Law on Temporary Work was approved by the German Parliament on 20th of December year 2002.
The major modifications included in the new text are intended to revoke the restrictive safeguard provisions in the old legislative framework:
 
a) Drop ban on synchronization
b) Drop fixed-term hiring ban
c) Drop rehire prohibition
d) Drop limited assignment prohibitions (24 months maximum in the previous legislation)
e) Drop ban on working primary construction through construction bargaining unit agreements.
f)  Cut administrative red tape
 
All this restrictions in the old legislation are lifted because in the new TW Law equal pay for equal job will be applied.  Equal pay will be effective from 1 January 2004 unless a collective agreement defining it come into force, as it is the case now.
The BZA (the German Temporary Work Trade Association) and the German Trade Union Confederation reached an agreement in which EQUAL PAY (EP) is defined as follows:
 
1.- Equal Pay  will be fully applied in year 2008
2.- The wages for the different type of professional categories are divided into 9 different groups, from less qualification to the top professions in the German Labour Market.
3.- Depending on the length of the assignment an experience surcharge will be applied ( starting at 3 months and until 12 months, and from 1.5% until 6%)
Adecco is the worldwide market leader for temporary staffing, professional and career services. Headquartered in Switzerland, Adecco's network of over 29,000 employees and 5,800 branch offices in 63 countries around the globe brings together up to 650,000 associates and corporate clients every day. Some 250,000 clients throughout the world benefit from the Adecco Group's incomparable services portfolio. Besides its core business lines, Adecco operates a number of specialized companies to provide you with one-stop professional support covering all aspects of career and human-resource planning. Adecco can be found in 200 offices and job centers across Germany. Through national outsourcing and project agreements, Adecco proudly serves some of Germany's leading companies from the energy, automobile, auto-parts, logistics, aviation and communications sectors.
 
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