The German Confederation of Trade Unions (DGB) accuses the CDU‑led federal government of deliberately delaying measures to strengthen tariff binding in Germany. On Wednesday the federal cabinet was supposed to approve a national action plan to promote collective‑bargaining negotiations. DGB board member Stefan Körzell told “Tagesspiegel” that “this was removed from the agenda for the fourth time under pressure from Economy Minister Katherina Reiche (CDU)”. He called it a scandal.
Under the EU minimum‑wage directive, countries with tariff binding rates below 80 % are required to submit such an action plan to the European Commission. Because the deadline, due in November, has passed, the DGB says the government risks triggering a infringement procedure. The Commission will ultimately decide on the consequences. “Reiche must finally give up her resistance and bring the plan to market as soon as possible” Körzell urged.
The number of companies and employees covered by collective agreements has been falling for years. Only one in two jobs is now tariff‑bound, compared with three out of four in the past. According to the DGB, 18 EU countries fall below the 80 % threshold, and nine have already adopted the action plan.
One tool to boost tariff binding is the proposed National Wage Loyalty Act. Labour Minister Bärbel Bas (SPD) introduced the bill to the Bundestag in October. Its expected passage in December 2025 has been postponed. Reports suggest that the discussion has moved to negotiations between the Union and SPD parliamentary group leaders.
Körzell also demands that the CDU and CSU abandon their opposition to the Wage Loyalty Act. “The Union keeps pushing new, harsh proposals that further burden workers” he said. “The Wage Loyalty Act must be adopted by the Bundestag as quickly as possible”. He stresses urgent action, arguing that many public contracts are currently awarded through the special infrastructure fund, where some jobs are being paid at dumping wages. “That cannot continue”.