Financial Times FT.com

Global terror

Union bribes claim hits German pay deal

By Hugh Williamson in Berlin

Published: March 25 2008 01:25 | Last updated: March 25 2008 01:25

Politically charged moves to introduce minimum wages in Germany have been hit by a new controversy, a week ahead of a deadline affecting the spread of the legally binding low-pay rules across the economy.

German prosecutors are investigating allegations that PIN, a private postal company, last year illegally financed the creation of a trade union as part of its failed bid to block minimum wage regulations in the postal sector.

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