German employers are issuing a stark warning to the European Commission, voicing concerns that a proposed directive on pay transparency threatens to dismantle the nation’s established system of collective bargaining – or Tarifautonomie. The German Association of Employers’ Associations (BDA) is urging the federal government to intervene and halt the directive’s implementation, arguing it represents a direct assault on the integrity of German wage negotiations.
Speaking to “Bild”, BDA Managing Director Steffen Kampeter asserted that the directive poses a fundamental challenge to the framework of German industrial relations. He calls for a pause in proceedings, advocating for a significant extension of the transposition deadline at the EU level. “The protection of Tarifautonomie must be paramount” Kampeter stated, emphasizing the potential for the directive to undermine existing agreements.
The core of the employers’ argument rests on the contention that German collective bargaining agreements effectively ensure equal pay for women and men, a claim they believe is being implicitly questioned by the directive’s implications. Kampeter warned that questioning the validity of these agreements risks encouraging a circumvention of bargaining processes, effectively eroding the core principles of a strong, collectively bargained labor market. He sharply criticised proposals seemingly undermining this system, suggesting those who advocate for them cannot credibly champion the strengthening of collective bargaining in the future.
Germany has persistently grappled with some of the widest gender pay gaps within the European Union, a fact which the BDA believes necessitates a nuanced approach. Rather than empowering the EU Commission’s mandated transparency measures – intended to curb wage discrimination and enhance comparison – they argue for a comprehensive reform of the directive.
Kampeter insists that the German government must now proactively defend the autonomy of social partners and safeguard against the creation of a presumption of wrongdoing. He emphasizes the need to advocate for a full reform of the directive on the European Union level. The current deadline for the German government to transpose the directive into national law is June 7, 2026, a timeframe the BDA believes is insufficient given the complexity and potential ramifications of the proposed legislation. This stance highlights a growing political tension between Brussels’ drive for greater wage transparency and Berlin’s desire to protect its long-standing industrial relations model.