Government Wants to Buy Back Charité Service Company

Berlin’s red-red-green government wants to buy back a minority stake in the company that manages non-medical personnel at the Charité hospital in Mitte as the company enters wage talks with union Verdi, according to the Tagesspiegel.

Berlin Mayor Michael Müller, Finance Senator Matthias Kollatz-Ahnen and Steffen Krach, the science secretary responsible for the Charité, all agreed to pursue a purchase of the 49 percent of Charité Facility Management (CFM) it doesn’t already own, according to the paper. The government would pay less than €10 million for the stake — it owns the outstanding 51 percent indirectly through Charité hospital.

“We’re pushing for a basic solution by the summer,” Krach told the paper. “We want a solution that primarily leads to an improvement for the employees.”

The stake was outsourced in 2006 as part of efforts to save costs and included carving CFM’s employees out of Charité’s union contract. They now earn €10/hr though they actually should be paid €15, according to the Tagesspiegel.

Healthcare costs are reportedly shared by states and insurers — states pay for the buildings and equipment while insurers pick up the tab for doctors and medication.

Bumping the employees to €15/hr overnight would result in an unfundable €28 million increase in costs for the insurers. Instead, the paper said the newest contract, which is currently being negotiated by union Verdi and the hospital, will likely allow the employees to earn €12.50/hr.

The minority stake is held by the Dussmann group, with its namesake bookshop on Friedrichstrasse, the Vamed services unit of dialysis giant Fresenius, and Hellman, a healthcare logistics company.


Photo thanks via Creative Commons.

Leave a Reply

Your email address will not be published. Required fields are marked *