German employers are issuing a stark warning to the European Commission, fiercely defending the nation’s long-held tradition of collective bargaining and urging the German government to halt the implementation of the proposed EU pay transparency directive. Concerns are mounting that the directive, intended to combat wage discrimination, risks undermining the established framework of wage negotiations between employers and unions.
Steffen Kampeter, Managing Director of the Confederation of German Employers’ Associations (BDA), voiced these criticisms to Bild newspaper, stating that the directive constitutes “an attack on collective bargaining agreements in Germany”. He strongly advocated for a pause in the process, urging the German government to lobby for a substantial extension of the implementation deadline at the EU level. The BDA insists that the protection of collective bargaining autonomy is paramount.
Kampeter argued that existing collective bargaining agreements already effectively guarantee equal pay for women and men, directly challenging the implicit premise that such agreements are insufficient. He cautioned that questioning the validity of these agreements and consequently the principle of collective bargaining, could inadvertently encourage employers to circumvent negotiated wage structures. He questioned the legitimacy of advocating for such measures while simultaneously promoting stronger collective bargaining ties.
Germany has consistently faced scrutiny within the EU for its comparatively high gender pay gap, a situation employers now assert is being adequately addressed through established negotiation processes. Kampeter stressed the necessity for the German government to decisively safeguard the autonomy of social partners and exclude any presumption of wrongdoing in wage negotiations. He further called for a comprehensive reform of the directive at the European Union level, reflecting a deep concern over its potential ramifications for Germany’s industrial relations landscape.
The European Commission maintains that the pay transparency directive is crucial for preventing wage discrimination and fostering greater comparability across member states. However, the BDA’s stance highlights the complex interplay between EU-wide objectives and the unique, deeply ingrained traditions of national industrial relations models, raising questions about the directive’s suitability for diverse regional contexts. The June 2026 deadline for national implementation looms, placing significant pressure on policymakers to navigate a potentially contentious path forward.
