Germany May Have To Deal With Short-Time Working Due To Brexit - Labor Minister

The economic consequences of Brexit may lead to work hours reduction for some workers in Germany, Labor Minister Hubertus Heil told Handelsblatt newspaper

MOSCOW (UrduPoint News / Sputnik - 21st February, 2019) The economic consequences of Brexit may lead to work hours reduction for some workers in Germany, Labor Minister Hubertus Heil told Handelsblatt newspaper.

"We need some reserves at the Federal Employment Agency for the difficult times, if, for example, we have to support short-time work to ensure that there are jobs. This can happen faster than many think, with the economic consequences of Brexit," the minister said, when asked about potentially reducing unemployment insurance contributions.

The employment agency has been more optimistic about the impact of Brexit.

The head of the labor office, Detlef Scheele, reportedly said last week the idea that up to 100,000 jobs could be in danger was judged "excessive" by the agency researchers.

In preparation for the UK departure on March 29, Germany has drafted an amendment to its labor law in a bid to make the country more attractive for financial institutions seeking to relocate after Brexit. The proposed change would make it easier for banks to fire highly paid staff. The amendment was approved by the parliament's finance committee on Wednesday, and the Bundestag is set to vote on it later on Thursday.