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The reforms Hartz (or the reform Hartz ) is the name given to the major reform of the Job market which took place in Germany, between 2003 and 2005, under the mandate of the chancellor Gerhard Schröder (SPD).

This reform reinforces the fight against the absenteeism, removes the trap doors with inactivity which push the members of the Active population to living Allocations unemployment rather than to accept a Emploi of which they judge the too weak Salaire. The installation of these reforms was not done without clashes.

The Hartz reform was installation gradually, in the form of four laws, of which most important is the law Hartz IV.

Law Hartz IV

The law Hartz IV is the fourth stage of the reform of the job market carried out in Germany by the government Schröder of 2003 to 2005. It is the aspect more discussed these reforms. Hartz IV gave place to several weeks of weekly demonstrations at the end of the summer 2004, especially in the East of the country. The application starting from January 1st 2005 was also marked by important difficulties of treating the files and of fulfilling the role of orientation and council entrusted to new Jobcenter.

The most important measurement of this reform is the reduction of the allowances paid with the unemployed of long life who would refuse to accept employment below their qualification; more these unemployed could be engaged with wages lower (1€/heure) than the collective agreement of the sector. Other measurements are criticized like the possibility of reducing the allowances of an unemployed whose ascending the or downward ones have economies. These measurements of SPD, voted with the support of the majority CDU of the Bundesrat, gave place in particular in ex- GDR to demonstrations hebdomaires Monday, by analogy with the Montagsdemo of the Années 1980 against the East-German mode. This mobilization contributed to the electoral reverses of the majority of Gerhard Schröder in 2005.

With this reforms, the unemployment benefits are not versed any more for 32 months, but for 12 months: it is the “Arbeitslosengeld I”. Then, the unemployed is regarded as unemployed of long life and receives the “Arbeitslosengeld II”, the equivalent of the RMI (approximately 350 euros). These allowances are subjected more and more to the conditions mentioned above. However, the uses with 1 euro of the hour seem to be a failure and are in lose speed. The name “Hartz IV” largely was thus associated by the Germans with these reductions of the services poured with many unemployed persons.

Peter Hartz

The inspirer of these reforms, Peter Hartz, was the personnel manager of Volkswagen, where it negotiated agreements on the flexibility of the schedules.

He resigned on July 10th, 2005 following an corruption affair.

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