The German Bundestag has moved the controversial wage‑loyalty law forward, approving it Thursday with votes from the Union, SPD, and Greens. The AfD opposed the bill, while the Left abstained.
The aim of the law is to strengthen wage autonomy by ensuring loyalty to collective agreements when the federal government awards public contracts. It will specifically apply to contracting in the construction and services sectors. Contracts that are “defence or security‑specific” are exempted. Deliver‑order contracts were removed entirely from the draft during the legislative process.
Business associations remain divided over the measure. The Federation of German Employers’ Associations (BDA) complained that the law would introduce new bureaucracy and constitutes a “dangerous intrusion” into wage autonomy. Meanwhile, the employers’ association Gesamtmetall described the law as “completely impractical”. From the Left’s side, the exemption clauses were sharply criticized.