German lower house backs postal minimum wage

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http://www.reuters.com/article/rbssIndu ... 4220071214

BERLIN, Dec 14 (Reuters) - Germany's lower house of parliament on Friday approved a plan to introduce a minimum wage for the country's postal sector workers from next year.

The Bundestag backed the measure in the teeth of opposition from business lobbies and some leading economists who say the wage will protect Germany's main postal delivery firm and former state monopoly Deutsche Post from competition.

Europe's largest economy employs around 220,000 postal workers, who from January should be guaranteed an hourly wage of up to 9.80 euros ($14.40) per hour, according to the proposal.

The minimum wage is due to be slightly higher in the wealthier west of the country than in the eastern states.

The upper house of parliament must still sign off the plan, but despite opposition from sections of Chancellor Angela Merkel's conservatives, her coalition holds a big majority. The Bundesrat is expected to give its backing next Thursday.

The wage proposal has also had an impact abroad.

The Netherlands, home to Deutsche Post's competitor TNT responded to the German move by postponing the full opening of its mail market, originally due in January.

The plan is an extension of the Entsendegesetz, a law that enables sectors of the economy to set their own minimum wage. (Reporting by Dave Graham; editing by Paul Carrel)