The proposed Federal Collective Bargaining Loyalty Act (BTTG) is poised to generate substantial financial benefits for Germany’s social security system and national treasury, potentially yielding annual revenue exceeding €190 million, according to calculations by the German Trade Union Confederation (DGB). This figure, reported by the “Neue Osnabrücker Zeitung” stems from the expected increase in payroll volume resulting from the legislation’s enforcement.
DGB board member Stefan Körzell argues that critics frequently overlook this significant financial upside, choosing to focus solely on perceived drawbacks. He contends that even conservative estimates place the total annual revenue gains for employees, the state and social insurance funds in the triple-digit millions. This contrasts starkly with the annual damages incurred due to “tariff dodging” a practice the Act aims to curtail.
While acknowledging the initial costs associated with implementation and oversight – estimated at approximately €7.4 million initially and around €3 million annually in fixed costs – the DGB maintains these expenses are manageable compared to the economic losses currently experienced.
Ahead of a crucial parliamentary hearing on the BTTG scheduled for Monday, the DGB is pressing for a more rigorous version of the draft legislation. Körzell criticized the current proposal for containing “too many exceptions and loopholes” demanding substantial revisions to ensure effective monitoring and enforcement. He questioned the political stance of the conservative bloc, accusing them of prioritizing “law and order” in areas outside the labor market.
The DGB specifically targets the proposed threshold within the draft, arguing it effectively excludes a significant portion of small-scale contracts within the crafts and medium-sized business sectors. Furthermore, the exemptions granted to entities like the Bundeswehr (federal armed forces), security services and outsourced deliveries are also slated for removal.
Rejecting employers’ assertions that the BTTG will create undue bureaucratic burden, the DGB points to the successful implementation of similar practices in the states of Saarland and Berlin, where simplified two-page forms suffice for tariff-bound companies, requiring minimal administrative overhead. The union body insists on a “control regime with teeth” including clear liability rules, adequate staffing, proof of compliance requirements extending to subcontractors and temporary employment agencies.