Berlin's Plan to Double Maximum Fixed-Term Contracts Sparks âThrowaway Jobsâ Fury
Published on 07/21/2026 at 02:42 | Redaktion boerse-global.de
A controversial proposal to extend the maximum duration of fixed-term employment without a specific reason from 24 to 48 months by the end of 2030 has ignited a fierce political battle in Germany. The measure, tucked into a broader reform package for growth and jobs passed in early July, would also raise the number of permissible contract extensions from three to six.
Opposition parties and even members of the governing coalition have reacted with outrage. Ricarda Lang of the Greens and Luigi Pantisano of the Left Party branded the plan a âlaw for throwaway jobsâ and accused the government of engineering âpolitically organised future anxiety.â The coalition, however, defends the step as a tool to encourage hiring during economic uncertainty and to stimulate recovery.
The political clash over job security comes as corporate Germany sends mixed signals on employment conditions. Amazon, for instance, is moving in the opposite direction on pay. Starting September 2026, the e-commerce giant will raise entry-level wages for its logistics workers to âŹ16.66 per hour â a 4.1 percent increase. Employees with at least two years of tenure will earn âŹ18.87 per hour, up 3.1 percent. The average hourly wage across Amazonâs German network will reach at least âŹ18, and including an annual bonus of roughly âŹ2,400, the companyâs more than 40,000 logistics staff can expect annual salaries of about âŹ41,600.
Despite the pay rise, the Verdi union remains sharply critical. It is demanding legally binding collective bargaining agreements and objects to wages being set unilaterally by the employer. Amazon is simultaneously expanding, with new logistics centres planned in ZweibrĂŒcken (opening still scheduled for 2026) and Könnern (expected in 2027 or 2028).
At Airbus, the focus is on reducing remote work. From September 2026, the aerospace manufacturer will cut mobile working from the current two days per week to just one, raising mandatory office presence to four days. The works council has warned of chaos due to insufficient desk space and parking, and fears the move will make the company less attractive to young talent. It is currently reviewing legal options to challenge the new regulation.
Meanwhile, Germanyâs system of mini-jobs â low-paid, part-time positions with special tax and social insurance status â faces a potential overhaul. A government-appointed pension commission has proposed scrapping the special status altogether. Under the plan, all marginal employees except school pupils would have to pay contributions to pension, health and long-term care insurance. Experts estimate this could cut net take-home pay for affected workers by up to âŹ130 per month. Employersâ associations warn of increased bureaucracy and a worsening of labour shortages.
On a brighter note, the countryâs sick leave rate has eased slightly. Data from the DAK health insurer for the first half of 2026 shows the absenteeism rate fell from 5.4 percent to 5.3 percent compared with the same period a year earlier. The average number of days missed dropped from 9.9 to 9.6. While sick days due to respiratory illnesses fell by 21 percent, mental health-related absences rose by 9 percent. DAK CEO Storm backed planned measures for partial sick leave and expanded prevention programmes.
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