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German Cabinet Approves Short Work Hours Extension



BERLIN -(Dow Jones)- German Chancellor Angela Merkel's cabinet has approved an extension of government subsidies for short-shift work at companies suffering in the recession, a government source said Wednesday.

Under the program, companies can get aid to cover part of the cost of workers who have too little to do, thanks to the plunge in global demand for German goods in the past year.

Business groups and economists say the policy has helped companies minimize layoffs during the recession.

The extension would offer short-shift work subsidies for as long as 18 months to companies that apply for them next year. Currently, the program offers subsidies for as long as two years for companies that apply before the end of this year.

The extension still needs approval from German parliament.

-By Patrick McGroarty Dow Jones Newswires; 49-30-288-8410; patrick.mcgroarty@ dowjonescom


  (END) Dow Jones Newswires
  11-25-090454ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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