The Central Association of the German Construction Industry (ZDB) has voiced significant concerns regarding the current draft of the planned Federal Collective Agreement Compliance Act, set to be reviewed by the cabinet on Wednesday. Felix Pakleppa, CEO of the ZDB, called for substantial revisions to ensure fair competitive conditions for companies bound by collective bargaining agreements and to avoid unnecessary administrative burdens.
Pakleppa stated that strengthening collective bargaining commitments is a goal the association explicitly supports. “Companies adhering to collective agreements require a fair opportunity in the competition for public contracts and not increased bureaucracy” he emphasized. He argued that the current draft fails to achieve this.
The association specifically critiques the proposed application of individual clauses from collective agreements to selected employees during the execution of public contracts. Pakleppa believes this approach will not lead to comprehensive adoption of collective bargaining agreements or full compliance with existing industry-wide agreements. “This will not create equal starting conditions regarding personnel costs between companies bound by collective agreements and those that are not” he explained.
Furthermore, the ZDB expressed concerns about the multiplicity of existing regulations at the state level. Currently, 14 different state-level collective agreement compliance rules are in place. The organization cautioned that a new federal law should not exacerbate legal uncertainty. “We need a uniform and practical system that harmonizes existing regulations” Pakleppa concluded.