Germany’s labour chief resigns in management row

The head of Germany’s Federal Labour Office has resigned after alleged
mismanagement.

The office’s supervisory board voted no confidence in Florian Gerster
following accusations that he had awarded multi-million euro contracts without
putting them out to tender.

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Gerster, who denies the allegations, was brought in to reduce unemployment.
In December, unemployment in Germany was 4.3 million – 10.4 per cent of the
population.

Germany is implementing its biggest welfare reforms since the Second World
War. It has cut the dole, toughened rules for the unemployed and changed the
law to let firms fire staff more easily.