"Time is running out on us"

In the interview, ZDH President Jörg Dittrich urges a focused implementation of the reforms and, above all, a reduction in non-wage labor costs.

DHB: Following the elections in September, some circles are calling for the governing coalition to fundamentally rethink its reform course and reverse some of the reforms. Can you understand this? 
Jörg Dittrich: No. Even though current economic forecasts for the German economy as a whole signal a certain recovery, this upswing has not yet reached the skilled trades. Looking at our business climate index for the second quarter, it reflects an economic situation in the skilled trades that is the worst it has been in many years. Orders are declining, employment is falling, sales are falling, and private investment is being held back. The engine of the domestic economy simply isn't starting. And the reasons for this lie in structural weaknesses in Germany's competitiveness. If the reforms are not pursued with determination, I see no improvement in the situation. What the government has done so far is simply insufficient, and time is running out. The outcome of the elections therefore didn't really surprise me. But in this context, it is, in my view, entirely justified for politicians to ask themselves whether they are being voted out because they are doing nothing or because they are doing what is right for the country.

DHB: Do businesses still have any trust in politics?
Dittrich: I believe trust in politics has definitely been damaged. Many things are announced, but in practice, agreements are simply not implemented, or are implemented in ways that sometimes even result in additional burdens for businesses. The electricity tax reduction was promised for everyone, but now it has only come to some. Another example can be found with bakers: the abolition of the Sunday baking ban is in the coalition agreement, but it hasn't been implemented to this day. Or take the mandatory receipt law. Its abolition is also in the coalition agreement. And now, instead, there's a requirement to provide digital receipts. The baking ban and the mandatory receipt law, in particular, have demonstrated that politicians actually deliver on their promises. That's why I see it as the duty of an advocacy group like the German Confederation of Skilled Crafts to repeatedly draw the attention of politicians to precisely these issues and thereby, if possible, to ensure that they pull the levers that, from our perspective, will bring about positive change.

DHB: In your view, which levers absolutely need to be pulled to restore trust in politics?
Dittrich: Above all, non-wage labor costs must be reduced. I emphasize this not only because it's the central issue for the skilled trades, but also because it plays a crucial role for the economy as a whole. Ultimately, both sides benefit: employers and employees alike. When people in the country have more money available, purchasing power increases, and there's more financial leeway for investment. This would provide a significant boost to the entire economy.

DHB: Where do you see levers for reducing non-wage labor costs?
Dittrich: We need to examine all social security systems – health, long-term care, unemployment, and pension insurance – and establish sustainable and future-proof structures. This includes reducing inefficiencies and discussing greater personal responsibility. Furthermore, societal responsibilities must be financed through societal contributions, i.e., from tax revenue. However, I consider it crucial that the coalition sets a clear goal: Non-wage labor costs must decrease from their current level of around 43 percent back towards 40 percent. This benefits both employees and employers. Those who work and perform must ultimately receive more net pay. And for skilled trades, this is also a key factor in ensuring the affordability of our services. Reducing non-wage labor costs is a matter of fairness and, at the same time, a matter of the competitiveness of our region.

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DHB: Employees and businesses are now affected by excessively high non-wage labor costs. The pension reform affects tradespeople after their active working life. Is this reform a step in the right direction?
Dittrich: The fact that the federal government has a pension plan is commendable. We must address the structural problems in our country and make pensions fair and financially sustainable for future generations. Positive aspects include the sustainability factor, the reduction of incentives for early retirement, and the introduction of a funded pension system. However, there are two points we view critically. First, the reform initially entails an increased burden. Therefore, it is crucial to provide relief to businesses in other areas, such as lower payroll taxes. The overall burden must not increase further. The goal must remain to bring social security contributions back down to around 40 percent. The second point concerns working life. In the skilled trades, there are career paths that are not suited to a blanket increase. It must be guaranteed, especially for people in physically demanding professions, that they can retire without deductions at age 65 after 45 years of contributions. We must also focus more on how people can remain healthy and in the workforce longer through improved working conditions and technological support. And one must not forget: Implementing such changes takes decades.

DHB: The country is not just made up of roofers and nurses...
Dittrich: …exactly. But even in the skilled trades, we can't delegate the responsibility for ensuring that people are employed in such a way that they aren't unable to work by the age of 60. Technology has already brought significant improvements here. Exoskeletons, lifting equipment, and modern machinery are already helping people to continue working in certain professions for longer. Nevertheless, policymakers must also consider those who, realistically speaking, won't be able to work until retirement age when planning reforms. Therefore, the diverse employment histories of skilled tradespeople should be explicitly examined once again, with the interests of the skilled trades in mind.

DHB: There's a lot happening in the skilled trades regarding digitalization as well. How is it progressing from your perspective?
Dittrich: The good thing is that we have a Digital Minister in Karsten Wildberger who comes from practical experience and the business world. He understands the subject matter and provides strong support and expertise wherever possible. Like us, he is impatient. From his perspective, digitalization and the implementation of related issues need to move faster. We are competing with other countries and continents in digitalization and the use of future technologies. We must give it our all so that we don't fall behind.

DHB: It seems that some young people have also grasped how digital and future-oriented the skilled trades are, as evidenced by their decision to pursue an apprenticeship in this field. Do the rising numbers of apprentices provide a solid foundation for the coming years?
Dittrich: The fact that we have not only maintained but even slightly increased our figures over the past four years is a remarkable achievement. I should point out that industry has had to report declines, while we in the skilled trades are taking on responsibility. We want this achievement to be recognized, especially by politicians. I don't consider budget cuts or the planned elimination of proven programs to be an expression of such appreciation.

DHB: Nevertheless, it is also true that the number of apprenticeships is significantly lower than before.
Dittrich: That's true, and we also know that even the current slight increase in apprenticeship contracts won't be enough to meet the demand for skilled workers. But that's also related to the fact that there are fewer young people. All the more reason, then, for us to fully utilize all available domestic potential; that means we need more women, more high school graduates. And it's precisely at this time that the Ministry of Economic Affairs announced its intention to cut funding for inter-company apprenticeship training. We have strongly criticized this and insisted on making the funding permanent. Whether our pleas will be heeded remains to be seen.

DHB: Skilled workers and managers are urgently needed in the trades. A six-figure number of businesses are ready for transfer of ownership. What are the chances that many will find a successor?
Dittrich: In the coming years, significantly more than 125.000 craft businesses will likely need to be transferred to new owners. A survey is currently underway to determine the exact number. For these transitions to be successful, we need apprentices, master craftspeople, and people who have the courage and desire to take on responsibility in the skilled trades.

DHB: If no successor can be found, these businesses are facing closure.
Dittrich: Currently, the outlook isn't promising for finding successors for all these businesses. Yet, we need these skilled tradespeople in our society. Takeovers can only be attractive if future business owners have the prospect of the business models remaining viable. That's why it's so important that skilled trades services remain affordable. As already mentioned, this requires reducing ancillary wage costs. I'm concerned that many young master craftspeople are now citing "fear of forms" and bureaucracy as reasons for not wanting to become self-employed. Therefore, we absolutely must address the issue of bureaucracy. If there's too much control and too much distrust from the state, the bureaucratic burden will only increase, making it ever more difficult for business owners. Consider how many businesses have closed in recent years, not only because they couldn't find a successor, but also because many were simply fed up.

DHB: What about skilled workers from abroad? The skilled trades are praised for their significant integration efforts for good reason… 
Dittrich: In the skilled trades, we thrive on openness and diversity. Around 16 percent of our employees hold a foreign passport, and many more have a migration background. For us, it's not where someone comes from that matters, but what they want to achieve. We are an organization for all skilled tradespeople. This is my deep conviction. The contribution skilled trades businesses make to integration is enormous. They provide people with jobs, training, and thus a future. We in the skilled trades can be proud of this, and we are grateful to these businesses. At the same time, we must be careful not to be swept away by broader societal debates. For us, what matters is this: We need skilled immigration because, given demographic changes, we depend on skilled workers. At the same time, we need clear rules, functioning procedures, and successful integration. That's why we must also resist attempts by political actors to distort the skilled trades' message or exploit it for their own campaigns. The skilled trades stand for diversity, solidarity, and openness to the world. This stance is non-negotiable.

DHB: Where does the negative mood in the skilled trades come from? 
Dittrich: The key figures show a decline in employment and business numbers, which in turn is impacting sentiment. However, the worst aspect, in my view, is the lack of investment. This is partly because the margins of a large number of companies are no longer viable. Others lack confidence and say: "I'm not investing now because I don't know what will happen." The worrying diagnosis is therefore: investment security and confidence in the location have suffered greatly.

DHB: How do we maintain confidence then?
Dittrich: By doing what we do best: giving people a perspective, opening up a future for them. And also by rolling up our sleeves and getting stuck in ourselves. That's precisely where one of the particular strengths of skilled trades lies. If a young person says, "I want to learn this trade," and someone encourages them to simply ask at the local craft business, the answer is very often: "Actually, I wasn't looking for an apprentice. But if you really want to, then we'll do it." That's why I'm convinced that there are more opportunities and training prospects in skilled trades than the statistics alone would suggest. Because our businesses don't react solely to long-term personnel plans, but above all to people who bring interest, motivation, and the will to learn a trade. Craft businesses simply don't operate like large corporations. They are flexible, pragmatic, and close to the people. The businesses know: Anyone who trains a young person today is investing in the future of their own company. And not every apprenticeship has to be profitable immediately. Companies make this easy and benefit from it in the long term because they are building up the next generation of managers.

The questions were asked by Martina Jahn and Stefan Buhren. 

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