The new “tariff fidelity law” introduced by federal Labour Minister Bärbel Bas (SPD) misses the mark for the middle‑sized economy. According to Rainer Kirchdörfer, chairman of the Stiftung Familienunternehmen und Politik, the law will not actually increase collective bargaining coverage but will instead make the administrative burden for companies on state contracts heavier, he told the editorial network Deutschland.
Kirchdörfer warned that many firms already choose not to participate in public tenders because the paperwork is too onerous. Around 90 % of all companies in Germany are family owned.
He criticized the black‑red coalition for not yet recognising the seriousness of the situation, arguing that while the coalition preaches reduced bureaucracy, it in fact creates new administrative hurdles for businesses and even within the authorities themselves. “Instead of removing growth brakes, new ones are being introduced”.
Oliver Zander of the General Metall Employers’ Association echoed similar concerns on Thursday. He said the tariff fidelity law contradicts the coalition’s promises of deregulation and repeats the mistakes of the Supply Chain Due Diligence Act. “The law is constitutionally questionable because it does not effectively increase the level of tariff binding” he added.
Zander also said deindustrialisation is in full swing because the location conditions are so poor that many companies can no longer produce profitably in Germany. Bureaucracy was among the four key disincentives for staying. “The fact that such a law is being passed in this situation is inexplicable or unforgivable. It demonstrates an organised irresponsibility on the part of the coalition”.