The leader of the Left party (Die Linke), Ines Schwerdtner, has called for significant revisions to the proposed law aimed at ensuring adherence to collective bargaining agreements by companies undertaking government contracts.
Speaking to the “Rheinische Post” newspaper, Schwerdtner analogized the current draft legislation to “an umbrella with holes – it doesn’t sufficiently protect from the rain”. While acknowledging that the SPD-led government is taking action, she argued the bill does not adequately address the issue of wage dumping.
Schwerdtner criticized the draft’s present form, stating it fails to provide sufficient protection against low wages, with nearly one in four contracts reportedly slipping through the loopholes. She emphasized the principle that companies receiving government-funded contracts should be obligated to pay fair, collective bargaining wages, asserting this is the minimum expectation. She urged Federal Labour Minister Bärbel Bas to implement crucial improvements.
The proposed legislation from Minister Bas intends to mandate that companies pay their employees according to prevailing collective bargaining agreements when undertaking contracts for the federal government. As currently drafted, companies will be required to provide wages, bonuses, vacation time and rest periods consistent with industry-standard collective bargaining agreements for contracts valued at over €50,000. Failure to comply could lead to substantial penalties.
