Criticism of Kiziltepe's training levy: bureaucracy monster or solution?

Criticism of Kiziltepe's training levy: bureaucracy monster or solution?

What is going wrong in the Berlin training landscape? This question arose at the IHK's economic policy breakfast, where Cansel Kiziltepe, the SPD's Berlin Labor Senator, and Sebastian Stietzel, President of the IHK, met. Ten years after a not exactly harmonious rear-end collision, the waves don't seem to be getting any smoother. Kiziltepe presented its plans to introduce a new training place levy, which has been sharply criticized by many entrepreneurs. They warn of a new “bureaucratic monster” that could create additional hurdles for companies without actually generating more training places. “After all, this is not a solution to our acute problem,” said Stietzel, expressing his concerns.

In Berlin, over 3,700 young people are currently without a training place every year. The number of unfilled training positions has also increased fivefold since 2009. Kiziltepe is aware of the situation and wants to use its levy to create 2,000 new training places by the end of 2025. She explained that Berlin has the lowest training rate in Germany - only half of the national average. In order to counteract this situation, the training place levy stipulates that all Berlin companies pay into a fund from which training companies receive money back. The amount of the levy should be between 0.1 and 0.4 percent of gross wages.

Who pays, benefits?

Kiziltepe assured that the full revenue from the levy will be returned to the companies. Nevertheless, the plan is met with resistance. Entrepreneurs refer to the levy as a “penalty levy”. It is also particularly critical that small businesses are excluded from the levy, which calls into question equality in competition. One entrepreneur even threatened to reduce his wages and relocate jobs to other federal states, which caused concern not only for Berlin but also for the entire region. Former Senator Manja Schreiner warned of the risks of false incentives through the levy. “This is not the right way to improve the situation,” said Schreiner.

The Berlin training alliance

To address the challenges, the Berlin Training Alliance aims to create 2,000 additional training contracts by the end of the year. But everything depends on the successful implementation of the planned measures. Kiziltepe asked company representatives for patience and assured that they would take their comments seriously. However, it is questionable whether these efforts will have the desired effect and actually lead to an increase in the training rate.

According to current statistics from the Federal Employment Agency, the training rate in Germany is continuously falling. The training company rate was 24.1% in 2007, while it fell to 18.9% in 2022. Small businesses are particularly hard hit, falling from 16.8% to 10.1%. This development clearly shows that there is an urgent need for action. In recent years, very few new trainees have been able to be accommodated in the many training places that have been offered.

The legislative process for the training place levy has already been initiated. In a planned time frame, the draft law is to be completed by the end of 2025 or beginning of 2026, which is already causing excitement in Berlin's political landscape. Governing Mayor Kai Wegner from the CDU has also criticized and demands that the focus must be on the actual need for training places instead of creating new bureaucratic hurdles.

The discussion about the training place levy shows how complex and multi-layered the topic of training is in Berlin. While the senator tries to find a solution to the pressing problems, the question remains: Can such a levy really bring about a change or is it just another step in the wrong direction?