FOCUS online. Companies are increasingly complaining about “increasing bureaucratic insanity”. Please help us. what exactly is behind it?
Marie-Christine Osterman. Where do I start? With 30,000 bureaucrats now sitting in federal ministries. In 2012, it was still 18,000. The state is massively increasing its workforce here. But one thinks it will govern us better.
Of course, all rules that are added to the existing rule stack must eventually be verified by someone. I think for every new bureaucratic law that comes in, two old laws have to be thrown out. Then the whole thing would remain somewhat manageable. But no, there’s always something new coming up.
Thanks to Brussels, right?
Osterman. The term Brussels often obscures the context. They are often German Europe- MEPs of European expert councils or German ministers who want to force companies to continuously submit new reports through Brussels. In fact, we entrepreneurs have seen very little relief from the federal government.
The so-called Bureaucracy Relief Act, which the federal government promised to turn around, fell short of our expectations. In the future, the accounting documents will be kept only for eight years instead of ten. As if it will somehow help us.
The real relief for us will mean that we can finally focus more on our core business and less on the often very questionable paperwork. Frankly, the shaking of the heads of many of my employees has now turned into disappointment.
“A manager hardly does anything other than to take care of forms”
Keyword main business. Can you give an example? Where has red tape made things difficult?
Osterman. One example that immediately comes to mind is the manager who now has almost nothing to do but take care of sustainability reporting forms. Our “Minister of Internal Affairs”, I sometimes jokingly say, because he has to gather people from all departments of the company to ensure that the guidelines are followed.
For us, as a supplier of food for restaurants and public catering, and a company that supplies about 20,000 products in its range, this is a huge investment of time. For example, the CO2 footprint must be determined for all areas using so-called “material analyses”.
But it makes sense, doesn’t it?
Osterman. In principle, yes, in principle, we have this on the agenda for a long time. Take strawberry season at the end. Of course, a commercial kitchen should ideally buy climatically, seasonally, regionally and only as much as is consumed.
Of course, we take decisive steps against food waste. In this particular case, our own digital online management system helps us by showing: What did he eat? What is left? Commercial kitchens get this data back and can adjust deliveries accordingly.
So far so good. What’s wrong with the other side?
Osterman. It’s always about symmetry. If, as announced, the Deforestation Legislation is soon to be added to existing legislation, it will, in my view, be anything but proportionate.
“Wherever politics fails, the responsibility falls downwards.”
What exactly does this regulation mean for you?
Osterman. When I source meat from Argentina for my customers, I have to make sure that there is no forest where it was produced about 20 years ago. As I said. We have 20,000 products in our range which we source from different regions of the world. Of course, it is urgently necessary to take steps against the cutting down of rain forests. My impression, however, is that where policy fails, responsibility falls.
Another topic is supply chain law, i.e. child labor. As a trading company with 200 employees, how do we ensure that no one in Argentina or anywhere else in the world is exploited? This is an impossible task.
Politicians can say now. other companies can do it too.
Osterman. Yes, perhaps big discounts and manufacturing companies that have their own locations in the respective country. And with great market power and tens of thousands of employees. If Aldi asks for such proof, suppliers will not think twice, no matter what it costs. But we do not have that market power.
Nevertheless, we are saddled with the same bureaucracy. Let me say it again. I think that the measures are right in this matter. It is important to take action against child labor…
“All that money is completely ineffective and lacks investment.”
But?
Osterman. Why can’t we find pragmatic solutions? For example, EU certification. Once a year, the auditor can conduct an on-site inspection abroad, preferably unannounced. Is it safe to do business with this company?
Such a certificate would be available to multiple trading partners. Not all individuals will have to reinvent the wheel and provide their own receipts. But that’s how it works right now. The mountain of bureaucracy makes every company groan in its own way. And only documentation is far from enough, everything must be checked;
Last week I met with two of our auditors as we need comprehensive advice on sustainability reporting and EU classification topics. The liability penalties if the job isn’t done thoroughly are huge. For this reason alone, we take very seriously the documentary commitment to sustainability in all its aspects, which are sometimes more and sometimes less understandable.
As a result, I have to pay employees who no longer care about the core business. I have to pay auditors for extra audits and my employees, and I also use our taxes to pay extra officials to evaluate and archive all our reports. All that money is completely ineffective and lacking in investment.
Hand to heart. Where do you find it difficult to understand the documentation requirements on the topic of sustainability?
Osterman. How is sick leave for employees? How satisfied are you? Something like this belongs in the report. For us as a mid-sized company, this seems like a huge step, as it is in our best interest that our employees feel comfortable with us and do well in order to perform very well in the competition.
“The whole thing is pointless, because the state itself owns all the information.”
And that disappoints your “Minister of Internal Affairs”.
Osterman. Not just him. He usually focuses on finance and human resources.
Where there are many other construction sites.
Osterman. Absolutely. How can talent be used better and more accurately? This is currently, for example, an important field. Like many German companies, we are experiencing a shortage of skilled workers and know that we need urgent solutions if Germany is to become competitive again.
But instead of discussing solutions, the federal government is burdening entrepreneurs with more bureaucracy. To make matters worse, the employee in question recently had to deal with the issue of birth certificates.
How much is that?
Osterman. For some time now, employees with children have had to pay lower premiums for long-term care insurance. Who has children? How old are you? As employers we must report this and provide relevant proof, official documents such as a birth certificate. I understand that some employees are not very enthusiastic. After all, a child’s birthday is a private thing.
The whole thing is especially absurd, because the state itself possesses all the information. However, and that’s probably the point, not numerically. By the way, that’s another thing that confuses me. the state simply cannot digitize its administration. At the same time, he constantly presents new, increasingly grotesque demands to us who have been working digitally for a long time.
Can you give another example?
Osterman. Let’s take the health certificate issue. The problem here is that, on the one hand, not all doctors participate in the digital process, so there are dual structures (digital and analog).
Furthermore, doctors often transmit data too late or not at all so that entrepreneurs have to follow up. For this reason, we still insist on receiving paper patient notes at this time.
“Great mistrust of the economy, as if we are exploiting our people.”
Again on the subject of stability. Don’t you find it clear that the bureaucratic efforts here have increased compared to before?
Osterman. Of course, we as a company see ourselves as having a special responsibility here, and our customers demand sustainable products and services anyway. It’s not what it is, but how it applies to us.
The question is, how can we meaningfully approach the topic of sustainability? But really, it’s all about something much bigger.
I mean?
Osterman. Simply put. everything that’s happening right now seems to be based on a lot of mistrust of the economy. Let’s take the Minimum Wage Documentation Requirement Act. To make one thing clear, I do not want to criticize the minimum wage at this point.
But how can it be that customs officers regularly visit us and make us feel this certain rejection? As if we are exploiting our people. We have been a trusted, reliable employer for decades.
Actually, I think we have a very fundamental problem here. Productivity and climate of mistrust. they don’t go together. This should be considered in politics, especially if Germany wants to become competitive again.