Pressure mounts on German government as trade union Verdi demands swift, uncompromised implementation of the Federal Collective Bargaining Agreement Act. Frank Werneke, head of Verdi, voiced strong concerns Sunday, emphasizing that further delays in the parliamentary process will disproportionately harm workers. He asserted that proposed exemptions to the legislation must be eliminated to ensure its full and comprehensive impact.
The Act, currently under scrutiny in a parliamentary hearing before the Committee on Labour and Social Affairs on Monday, seeks to link the awarding of federal public contracts to companies’ adherence to collective bargaining agreements – a pivotal step towards strengthening Germany’s commitment to collective bargaining.
However, Verdi is fiercely opposing the inclusion of a proposed threshold of €50,000 for contract awards, labeling it “excessively high” and arguing it would exclude up to one-third of all public contracts from the Act’s scope. Crucially, Verdi also demands the complete removal of planned exemptions for the federal defense procurement system and other security-related areas.
Werneke highlighted the irony of massive investments in defense and security, coupled with extensive contracts awarded to service providers, failing to simultaneously promote fair labor practices and robust collective bargaining. He warned against the undermining of the Federal Collective Bargaining Agreement Act by competing legislation, such as the accelerated procurement law, which introduces higher thresholds and direct allocations.
The union leader insisted that collective bargaining agreement conditions should apply from the outset, advocating for a simplified application process and rigorous oversight of subcontractors. Werneke’s call underscores a fundamental argument: public procurement processes should not only prioritize competitive pricing but also mandate fair wages and working conditions, effectively preventing a race to the bottom in terms of labor standards. The current debate highlights a political tension between accelerating procurement processes and upholding worker protections within Germany’s vital public sector.
