German employer associations are intensifying their criticism of the proposed “Tariff Adherence Act” with Steffen Kampeter, Managing Director of the Confederation of German Employers’ Associations (BDA), stating that there is widespread opposition within the organization.
Kampeter urged the parliamentary group of the Christian Democratic Union (CDU) and Christian Social Union (CSU) not to approve the draft legislation in its current form, questioning why they would support a bill that largely mirrors proposals from the governing coalition.
He indicated that companies potentially affected by the law have strong grounds for legal challenges, suggesting that the justification for tariff adherence clauses may no longer be valid given existing legal guarantees for minimum wages and working conditions. He argues that the statutory minimum wage has removed the rationale for regulating the awarding of public contracts through such clauses.
Kampeter expressed concerns regarding the proposed establishment of a new authority to oversee compliance, questioning the necessity of such an agency. He advocates for a “declaratory tariff adherence” model, similar to those found in some regional laws, where companies simply declare adherence to legal standards, with violations subject to penalties.
Regarding the anticipated reform of working time legislation, Kampeter doesn’t foresee a joint recommendation with the DGB (German Trade Union Confederation). He states that employer associations seek reform while the DGB appears resistant to change, expressing pessimism about reaching a consensus. However, he remains cautiously optimistic that constructive solutions can be found with the Ministry of Labour.
Under an agreement between the CDU/CSU and the Social Democratic Party (SPD), the working time act is to be amended to calculate maximum working hours on a weekly rather than daily basis. A “social partner dialogue” between employers and unions is slated to precede the legislation and employer associations are prepared to participate if invited.
The fourth and final session of this dialogue is scheduled for October, after which the government will internally review the discussions and draft the legislation, meaning it will likely not be implemented this year.