The leader of the Left party, Ines Schwerdtner, has called for revisions to the planned law on tariff compliance, directed at Federal Labour Minister Bärbel Bas (SPD).
Speaking to the “Rheinische Post” Schwerdtner expressed reservations regarding the current draft, stating it offers inadequate protection against wage dumping. She likened the legislation to “an umbrella with holes – it doesn’t adequately shield from the rain” adding that despite the SPD’s action demonstrating progress, the law falls short in its aims.
Schwerdtner’s criticism centered on the perceived loopholes within the draft, asserting that they fail to sufficiently guard against low wages. She indicated that almost one in four contracts could bypass the intended protections due to these deficiencies. “Companies receiving contracts funded by taxpayer money must also pay tariff wages – that is the minimum” Schwerdtner emphasized. She urged Minister Bas to reconsider and introduce further improvements.
The proposed legislation from Minister Bas aims to ensure that companies pay their employees according to collective bargaining agreements when fulfilling contracts for the federal government. The requirement stipulates that, for contracts exceeding a value of €50,000, companies must provide employees with the same level of pay, holiday bonuses, vacation time and rest periods as stipulated in standard industry-wide collective agreements. Failure to comply could result in substantial penalties for businesses.