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When Workers Are Exploited

The Institute for Labour and Economy has investigated where worker exploitation is common and why it is difficult to combat

Research / University & Society

One of the United Nation’s 17 Sustainable Development Goals is to avoid poverty. The first step is to research the reasons for poverty, including the effects on health, education, social participation, and on working conditions. The Institute for Labour and Economy at the University of Bremen has been investigating these topics, and recently worked together with the Bremen Chamber of Employees to research worker exploitation. up2date. spoke with project manager René Böhme about the results.

Mr. Böhme, what is severe exploitation at work?

In the 2010s, the term (severe) labor exploitation was added to the debate about the “lower end” of the labor market. Since 2016, worker exploitation in Germany has also been relevant under criminal law. However, Germany still lacks a coherent and practicable approach for registering labor exploitation. At its core, however, severe exploitation is when employers (deliberately) fall short of labor law standards such as those pertaining to wage payments, wage levels, the payment of social security contributions, the regulation of work hours, occupational health and safety, and contract termination.

You have qualitatively investigated severe labor exploitation. What did you discover?

The goal of the study was to systematize the support services for victims of labor exploitation and to shed light on the obscurity of worker exploitation through expert interviews with trade unions, counseling centers, and associations in Bremen, as well as by conducting an online survey of the nationwide counseling services for victims of labor exploitation. This included deciphering which sectors in particular utilize exploitative measures, which forms of labor exploitation are most common, investigating which mechanisms promote these abuses, and why prosecution only occurs in a fraction of cases, even though year after year thousands of people report their experiences in an appropriate counseling center. We also conducted a case study on labor exploitation in the cleaning industry.

Which industries are particularly notorious for exploitation?

Respondents identified five key industries in which they perceive frequent labor exploitation. These include the food service and hotel industry, the logistics/postal sector, the commercial cleaning industry, the shipping and storage sector, and the construction industry.

Which forms of exploitation were described most often?

The most common forms of exploitation cited by the counseling centers and experts interviewed were employers failing to pay overtime, wages, or wage components; terminating work contracts in the event of illness or an accident; not providing the obligatory breaks and rest periods; and neglecting to produce paperwork such as pay slips, employment contracts, and certificates of employment.

Portrait of René Böhme sitting in front of a desk
In his project, Dr. René Böhme from the Institute for Labour and Economy at the University of Bremen researched the sectors in which labour exploitation frequently occurs and what help is available for those affected.
© Matej Meza / Universität Bremen

Are there conditions that favor exploitation?

First: There are shortcomings in the legal system – quite fundamental problems. The regulations are complex, for example, in determining when a personal and economic predicament is being exploited, or the offense “ruthless profiteering” applies. Here we see a lack of experience of the courts and prosecutors with regard to the application of the regulations, which is compounded by a low acceptance of the legal norms and a rather low commitment to implementing these. In addition, facts are difficult to prove. It also takes a long time for legal proceedings to be commenced and completed. Those affected are often unable to see the process through to the end, and need a great deal of courage to prevail against superiors in a dependency situation.

Second: Compliance with labor law standards is too rarely checked because, on the one hand, there is a lack of personnel and, on the other hand, there is no authority with a clear mandate, as is the case, for example, in Austria with its labor inspections and financial police; instead, the responsibilities are distributed among several authorities.

Third: Many people affected by labor exploitation have immigrated, have a low level of education, and often have little knowledge of the German labor market and the German language. This can be easily abused by employers. Because the right of residence is coupled with proof of earning a livelihood through gainful employment, and due to the many obstacles in accessing social benefits and protected housing, many victims of exploitation have little opportunity to defend themselves against labor exploitation.

Where can those affected find help?

The weaknesses of the system which was set up to provide help often stand in the way of effectively combatting labor exploitation. Many counseling centers for victims of labor exploitation are insufficiently and insecurely funded. They often only offer information about the German labor market and give occasional assistance with correspondence. In order to adequately help against worker exploitation, these would need to provide more support services, counseling in more languages, concrete legal advice, legal representation, as well as protected housing.

Further information

The “Severe Labor Exploitation: Assessing the Support Structures and Industry-Specific Problems study” will be presented in the spring.

About the sustainable development goal “No poverty” (In German only)

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