The powerful service sector union, Verdi, is mounting significant pressure on the German government to swiftly enact the Federal Collective Bargaining Agreement Loyalty Act (Bundestariftreuegesetz) without concessions or exemptions. Verdi’s leader, Frank Werneke, warned on Sunday that any further delays would disproportionately harm workers and emphasized the need to prevent dilution of the legislation during the parliamentary process.
The Act, currently under parliamentary review, aims to link the awarding of federal public contracts to companies adhering to collective bargaining agreements, effectively bolstering adherence to wage and working condition standards across Germany. A parliamentary hearing is scheduled for Monday before the Committee on Labour and Social Affairs, marking a critical juncture in the legislative journey.
However, Verdi is particularly concerned about the proposed threshold of €50,000 for contract awards, which Werneke deems excessively high. He argues this level would exclude up to one-third of all public contracts from the Act’s scope, significantly limiting its impact. Equally contentious are the planned exemptions for the procurement activities of the German armed forces (Bundeswehr) and other security sectors – provisions Verdi insists must be removed.
Werneke sharply criticized the prospect of these exemptions, particularly in light of the government’s substantial planned investments in defense and military support capabilities. He asserted that these extensive contracts with service providers should actively contribute to strengthening collective bargaining and enhancing working conditions, rather than being governed by separate, potentially conflicting legislation like the Accelerated Procurement Act, which allows for significantly higher thresholds and direct awards.
Emphasizing a commitment to fair labor practices, Werneke stressed that contractual working conditions should apply from the outset. He called for streamlining the application process and implementing rigorous oversight of subcontractors to ensure compliance. Ultimately, Verdi advocates that the awarding of public contracts should actively prioritize tariff wages and secure working conditions as a pre-condition, as a vital tool to combat exploitative price dumping and ensure a level playing field for honest businesses. The union views the legislation as a cornerstone in bolstering workers’ rights and preventing a race to the bottom in public procurement.