The Central Association of the German Construction Industry (ZDB) has voiced significant criticism regarding the current draft of the planned Federal Collective Bargaining Loyalty Act, ahead of the cabinet’s review scheduled for Wednesday. ZDB’s Managing Director, Felix Pakleppa, called for fundamental revisions to ensure fair competitive conditions for collectively bargained companies and to avoid unnecessary bureaucracy.
Pakleppa affirmed the association’s support for strengthening collective bargaining, stating that companies adhering to collective agreements require a fair chance in competing for public contracts, rather than facing increased administrative burdens. He asserted that the draft law, in its present form, does not achieve this objective.
The ZDB specifically expressed concern about the proposed application of individual clauses from collective agreements to select employees during the execution of public contracts. Pakleppa argued this approach will not encourage comprehensive collective bargaining commitment or full application of existing industry-wide agreements. “It will not create equal starting conditions for personnel costs between collectively bargained and non-collectively bargained companies” he explained.
Furthermore, the association criticized the multitude of existing regulations at the state level. Currently, 14 different state-level collective bargaining loyalty regulations are in effect. The ZDB warned that a new federal law should not exacerbate legal uncertainty. “We need a uniform, practical system that harmonizes existing regulations” Pakleppa emphasized, advocating for a streamlined and consistently applicable framework.
