Union Advocates for Caterers' Fair Wages Rather Than Heightened Taxes by NGG Trade Union
In Halle, the head of the NGG Leipzig-Halle-Dessau, Christian Ullmann, has launched a unique advocacy campaign aimed at ensuring that the upcoming VAT reduction in the catering industry truly benefits its workforce.
Ullmann argues that the collectively agreed wage is the fair wage in the industry and believes that persistent and systematic inquiries by guests when dining out could potentially ensure the VAT reduction does not solely benefit innkeepers in Halle.
The campaign, dubbed the "Gastro VAT Check", encourages guests to verify prices of dishes in restaurants and guesthouses, and to ask about the distribution of the VAT reduction to staff in the kitchen and service. Ullmann suggests asking the question "Where have the 12 percent gone?" to restaurants that frequently raise prices.
This move comes as the NGG Leipzig-Halle-Dessau expects that restaurateurs will keep prices the same and use the tax savings for their own benefit and operational costs rather than passing them on as wage increases. With approximately 450 gastronomic businesses in Halle where around 3,490 employees work, there are ample opportunities for the "Gastro VAT Check".
Ullmann does not support the low minimum wage in the industry and believes gastronomers in Halle should stick to collectively agreed wages. He argues that if innkeepers do not pass on the tax reduction to guests in January, they will not be able to wriggle out of the need for a wage increase.
The minimum wage in the industry is increasing to 13.90 euros on January 1, but this is only half of what an innkeeper earns on a single schnitzel with the tax reduction. High energy costs and wage costs are common excuses used by the industry to justify not passing on VAT reductions.
However, Ullmann is skeptical about the planned VAT reduction for the catering industry, as the VAT for food in guesthouses and restaurants in Halle will not be reduced, despite a planned drop from 19% to 7% by the black-red federal government.
In an effort to apply moral pressure, Ullmann argues that only the collectively agreed wage is fair in the industry and encourages guests to inquire about a wage increase for employees in restaurants. By taking part in the "Gastro VAT Check", guests can help ensure that the VAT reduction benefits the hardworking employees in Halle's gastronomy sector.
