BERLIN (GERMANY) – German industry on Monday welcomed the proposal of Finance Minister Olaf Scholz to extend the period during which under a government short-time working scheme state aid is paid. Thus has been done to prevent unemployment from accelerating further during the COVID-19 pandemic.
Short-time work, also known as Kurzarbeit, allows employers to provide employees fewer working hours to suspend immediate shocks such as the pandemic leading to mass unemployment.
The scope of the scheme, which was designated much before coronavirus, was expanded in March. Scholz now wants an extension of its cover to 24 months.
The VDMA engineering association said, “That’s why Finance Minister Olaf Scholz is on the right track if he wants to extend the period for receiving short-time work allowance to 24 months.”
Scholz said, “Companies and employees need a clear signal from the government: We will go with you all the way through the crisis so that no one is laid off without any need.”
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.
