Critics from the employer community voice opposition to proposed government measures related to collective bargaining
The German government has introduced a draft of the Tariff Loyalty Act today, a move that has sparked criticism from various quarters. Rainer Dulger, president of the Federal Association of German Employers' Associations, has labelled the act as a "Tariff Coercion Act", expressing concerns about its potential impact on the economy.
The Tariff Loyalty Act aims to require companies to pay their employees according to industry-standard collective bargaining agreements for public federal contracts over 50,000 euros. However, Dulger and the German Chamber of Industry and Commerce (DIHK) argue that the act could undermine economic recovery and increase bureaucratic burden.
DIHK President Peter Adrian believes simplifications in procurement law are necessary for efficient use of infrastructure investment funds. He states that the Tariff Loyalty Act prevents cost-effective public hand action in the context of 500 billion euros of infrastructure investment from the special fund. Adrian calls for the withdrawal of the act, stating that it adds an unnecessary layer of complexity to the awarding process in the public sphere.
IG Metall, a trade union, supports the project and calls for its implementation without loopholes. IG Metall's chairwoman, Christian Benner, advocates for consistent implementation of the Tariff Loyalty Act without exceptions, delays, or thresholds. Benner argues that clear rules for remuneration are necessary for workers involved in the federal government's billion-euro infrastructure investments to ensure fair competition.
However, IG Metall has also criticized the exclusion of Bundeswehr procurement from the Tariff Loyalty Act. Benner argues that this exclusion could lead to unfair competition within the defence sector.
Dulger believes that bureaucratic reduction requires trust in the economy and the power of the market. He argues that the draft from the Ministry of Labor is not a bureaucratic reduction, but rather an increase in complexity in the awarding process in the public sphere.
The project is part of the coalition agreement and aims to increase the level of collective bargaining. As the debate continues, it remains to be seen how the Tariff Loyalty Act will shape the German business landscape.
The Tariff Loyalty Act, with its aim to enforce industry-standard collective bargaining agreements for public federal contracts over 50,000 euros, has sparked debates in policy-and-legislation and general-news circles. Rainer Dulger, president of the Federal Association of German Employers' Associations, expresses criticisms about the act's potential impact on business, stating concerns about economic recovery and bureaucratic burden. On the other hand, IG Metall, a trade union, supports the project yet criticizes the exclusion of Bundeswehr procurement from the Act, arguing that it could lead to unfair competition within the defense sector. As the debate continues, the Tariff Loyalty Act's role in shaping the German business landscape remains uncertain.
