Germany's upper house of parliament approved on Thursday a minimum wage scheme for postal workers which business lobbies and economists have warned could cause unrest in the wider economy. Germany employs around 220,000 postal workers, who from January should be guaranteed an hourly wage of up to 9.80 euros ($14.08).
The minimum wage is due to be slightly higher in the wealthier west of the country than in the eastern states.
The Bundesrat backed the measure in the teeth of opposition from business lobbies and some leading economists who say the wage will protect Germany's main postal delivery firm and former state monopoly Deutsche Post from competition.
Germany does not have a nation-wide minimum wage, opposed by Chancellor Angela Merkel on the grounds that it would create new problems and could put jobs at risk.
The postal minimum wage, which is far more than competitors to Deutsche Post now pay their staff, has already had an impact on the postal sector in Germany.
Axel Springer AG gave up on rescue plans for its loss-making mail services group PIN on Wednesday after shareholders were unable to agree on extra financing needed to meet the new minimum wage requirements.