Sunday, October 11, 2015

BANKRUPTCY: Historic German Nutcracker Company Because of Minimum Wage

The evil minimum wage in action once again.

One of Germany's largest producers of traditional wooden nutcrackers has filed for bankruptcy, citing increased labor costs due to the country's new minimum wage.

The dpa news agency reports Sunday that the approximately 200-year-old Steinbach nutcracker company, based in Hohenhameln in eastern Germany, said labor costs had risen 27 percent since the country's national minimum wage was introduced Jan. 1.

Director Karla Steinbach told the Hildesheimer Allegemeine newspaper that she had paid most of her 120 employees around 5.50 to 6.50 euros ($6.25 to $7.40) per hour before the government increased the minimum hourly wage to 8.50 euros ($9.65).

It is not clear how the company will be able to restructure.


1 comment:

  1. So they had no debt?..their balance sheet was not levered?so it is completely the fault of min wage from that article? Maybe you're jumping the gun or do you this for a fact?