Union of German Trade Unions Demands Mandatory Company Pensions to Ensure Retirement Security
Politics

Union of German Trade Unions Demands Mandatory Company Pensions to Ensure Retirement Security

Before the start of the social partner dialogue aimed at strengthening occupational company pension schemes (bAV), the United Service Union Verdi advocates for comprehensive legal requirements. Frank Werneke, head of Verdi, told journalists from the Funke Media Group that the goal set by the Pension Security Commission-a system that guarantees a standard of living at 70 percent of salary after taxes-can only be achieved if all employees receive some form of occupational pension.

According to Werneke, existing bAV systems must be opened up to include all employees and all businesses. Verdi is prepared to facilitate this. However, he stressed that this must be backed by a statutory regulation mandating an obligatory occupational pension scheme, supported by required contributions from employers for their staff.

Werneke remains skeptical that the dialogue between employers and employees will lead to a consensus. He stated that they will present their arguments, but he does not hold out hope that the employers’ associations will voluntarily negotiate with Verdi during the upcoming social partner dialogue. Ultimately, he asserted that the federal government is obliged to legally mandate an obligatory occupational pension scheme for every worker.

Maike Finnern, the chair of the Education and Science Union (GEW), told the Funke newspapers that the focus now lies on laying the right groundwork. She argued that employers’ associations must abandon their current restrictive stance against general binding declarations found in industry collective agreements. Doing so would compel small and medium-sized enterprises to participate as well. Finnern stated that if one identifies as a social partner, they cannot obstruct the expansion of bAV collective agreements.

She further demanded that public authorities, such as those in childcare and youth welfare, should financially support the costs incurred by providers for the occupational pensions of their employees. Moreover, any legal regulation must take into consideration already successful and established bAV structures to prevent damaging them. Anything that is working currently should not be reformed out of existence. If these conditions are met, Finnern believes that reaching an agreement during the social partner dialogue is entirely possible.

The Federal Ministry of Labor recently distributed invitations for the start of the social partner dialogue. Participants are required to submit their positions by September 17, and the opening event is scheduled to take place in Berlin on October 8.