CSU Demands SPD Concessions on Federal Wage Loyalty Act

CSU Demands SPD Concessions on Federal Wage Loyalty Act

Alexander Hoffmann, the head of the CSU state groups, has called on the social democrats to make concessions regarding the federal tariff loyalty act, a bill that has been under parliamentary review since October.

Hoffmann told the newspapers of the Bavarian media group that early indicators show the measures are paying off and the economy is starting to pick up. He warned that any policy that undermines performance must be avoided. “Too much bureaucracy and restrictive requirements choke the economy” he said. “That should also apply to the tariff loyalty act. We cannot turn the law into a bureaucratic monster with insane documentation obligations”.

He emphasized that the law is not an initiative of the Union but “a project from the SPD that we need to shape into a workable coalition agreement”. Hoffmann stressed that the bill should not apply to suppliers. “It is also important that delivery services are excluded” he added. “This is crucial to prevent stalling the national economy, as the regulation cannot be applied to foreign delivery services under EU law. We do not want to create a Supply Chain Act 2.0”.