Gitta Connemann, chairwoman of the Mittelstandsunion (SME Union), has rejected the German Trade Union Confederation’s (DGB) proposal for a mandatory occupational pension scheme. While acknowledging that company pensions represent a success story and significantly boost the retirement security of millions of workers, the CDU politician told the “Handelsblatt” that robust support must be built on voluntary acceptance rather than compulsion. She believes the DGB’s suggestion is heading in the wrong direction.
Connemann pointed out that mandating occupational pensions for everyone, coupled with additional financial obligations placed on employers, would mainly result in new burdens for businesses-and at a difficult time. She noted that companies are already covering a substantial proportion of the costs associated with these plans while simultaneously struggling with rising labor ancillary costs, excessive regulation, and intense international competition. She warned that introducing further duties now risks endangering investment, jobs, and economic growth, arguing that small and medium-sized enterprises (SMEs) particularly need breathing room rather than additional administrative weight originating from Berlin or central union bodies.
Instead of mandatory measures, Connemann advocates for strengthening occupational pensions through incentives. She argues that to make the system stronger, bureaucratic hurdles must be removed, not new ones erected. The CDU politician sees potential in the social partner model, which facilitates attractive and profitable pension options for both employees and employers. Her current focus is on making it significantly easier for SMEs, in particular, to utilize these benefits.
