Financial Times FT.com

German minimum wage ruled illegal

By James Wilson in Frankfurt, Michael Steen in Amsterdam and Hugh Williamson in Berlin

Published: March 7 2008 20:01 | Last updated: March 7 2008 23:13

A German court ruled on Friday that a minimum wage introduced across the country’s postal sector was illegal, potentially dealing a significant blow to the Berlin government and supporting efforts by rivals to Deutsche Post, the main postal company, to open up the sector to competition.

The minimum wage of €9.80 (£7.50) was widely seen as a protectionist measure in favour of Deutsche Post when it was voted through by the German parliament late last year.

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