The leader of the German Confederation of Trade Unions (DGB), Yasmin Fahimi, has dismissed criticisms from employer associations concerning the planned Loyalty to Collective Agreements Act, which they argue is overly bureaucratic and infringes upon collective bargaining autonomy.
Speaking to publications within the Funke-Mediengruppe, Fahimi described the criticism as a recurring argument from employers. She acknowledged the need for streamlining processes, stating, “We are also in favor of reducing bureaucracy, but society needs proper rules”. Fahimi emphasized that the proposed law does not represent an intervention in collective bargaining autonomy, but rather provides support for the principle itself. She cautioned against a scenario where the state awards contracts solely based on price, undermining established societal order. “The state should stand for fair competition and that means fair wages” she asserted.
The Federal Cabinet approved the Bundestariftreuegesetz (Federal Loyalty to Collective Agreements Act) in August. During the parliamentary process, Fahimi indicated that close attention would be given to ensuring that high thresholds for direct contracts within public procurement law are also subject to the principles of loyalty to collective agreements.
However, she also warned that a parallel law designed to accelerate procurement processes is crucial. “Otherwise, the effects of the Loyalty to Collective Agreements Act risk being neutralized” she stated. Fahimi expressed reservations about the proposed thresholds, noting that the current draft sets a value of €50,000 for federal-level procurements. She indicated a preference for significantly lower values.
