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Sick Leave Wages in Germany Double Over 15 Years

Former Chancellor Angela Merkel has urged citizens to defend democracy ahead of elections in Saxony-Anhalt, where the AfD leads in polls. German firms reported a record €85.6 billion in sick leave wages last year, more than double from 2010. Meanwhile, a Taliban delegation has arrived in Germany to assist with deportations, and a fire at a refugee shelter in Berlin led to the evacuation of hundreds.

Companies
Volkswagen
People
Angela Merkel Friedrich Merz Olaf Lies

Former German Chancellor Angela Merkel has addressed the upcoming elections in Saxony-Anhalt, where the far-right Alternative for Germany (AfD) party is leading in the polls. Merkel emphasized the importance of standing up for democracy at a political event in Berlin on Saturday night, stating that the AfD has dominated political discussions, leading many voters to overlook other parties' policies. She noted that the rise of the AfD is not confined to eastern Germany, calling it a 'pan-German phenomenon.'

In other news, German Chancellor Friedrich Merz's government plans to hold Moscow accountable for a drone incident in Leipzig earlier this month, with reports indicating that extensive sanctions may be announced soon. A drone loaded with explosives was found near Ukrainian cargo planes at Leipzig/Halle Airport, which is a hub for military aid to Ukraine. Merz stated that the government would soon identify those responsible for the incident.

A study from the Cologne-based German Economic Institute (IW) revealed that German firms paid a record €85.6 billion ($111 billion) in wages to employees on sick leave last year, more than double the €36.9 billion paid in 2010. The increase is attributed to wage hikes, inflation, and a growing workforce eligible for sick leave. The IW also noted a significant rise in recorded sick leave since the introduction of electronic medical certificates in 2022. Research from the IGES Institute indicated that German workers now take an average of 19.5 working days as sick leave annually, up from about 13 days in 2018. In response, the government plans to ban patients from obtaining sick notes via phone starting in January.

Volkswagen's second-largest shareholder, Olaf Lies, has urged for a restructuring plan for the company to be agreed upon soon, citing challenges such as tariffs and competition from China. VW's management is considering cutting up to 100,000 jobs and potentially closing several factories. The supervisory board is set to meet on September 4 to discuss a turnaround plan.

A Forsa poll indicated that 67% of residents believe the United States has more influence on Germany since President Donald Trump returned to office, while only 11% think there is less influence. The survey highlighted generational differences in perceptions of US influence.

In a controversial move, the Taliban has sent a delegation to Germany to assist in the deportation of Afghan nationals. This delegation is reportedly providing necessary documents for those being deported, despite Germany not recognizing the Taliban government. Chancellor Merz described the contacts as a technical necessity, while critics argue it legitimizes the Taliban.

The youth wing of the AfD has diverged from the party leadership by opposing a call for Germany to leave the euro currency. The Generation Deutschland organization aims to address structural flaws in the euro system instead.

A fire at a refugee shelter in Berlin-Spandau resulted in the evacuation of hundreds of residents, with four individuals treated for smoke inhalation. The cause of the fire is under investigation.

This summary includes key stories from Germany as of August 29 and 30.

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Germany news: Sick leave wage bill doubles in 15 years

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Sick Leave Wages in Germany Double Over 15 Years