(de-news.net) – The German Bundestag has commenced deliberations on the proposed Bundestariftreuegesetz, a legislative initiative designed to ensure that public contracts exceeding €50,000 are awarded exclusively to companies that adhere to collective wage agreements. During the initial parliamentary reading, Federal Labor Minister Bärbel Bas (SPD) underscored the principle that enterprises offering fair and contractually regulated remuneration should not be disadvantaged in the competitive process of public procurement.
The proposal encountered notable criticism from across the political spectrum. Members of the Christian Democratic Union (CDU), which forms part of the governing coalition, expressed reservations regarding the administrative burden the legislation may impose on businesses. CDU representatives Sandra Carstensen and Wilfried Oellers emphasized the necessity for substantive amendments and advocated for a streamlined implementation process. Nora Seitz, also of the CDU, reaffirmed the party’s commitment to the bill as outlined in the coalition agreement, while simultaneously highlighting deficiencies in the current draft concerning the reduction of bureaucratic obligations and oversight mechanisms.
Opposition parties also voiced significant concerns. Ricarda Lang, representing Alliance 90/The Greens, criticized the proposed exemptions for military procurement and called for robust enforcement provisions to ensure compliance. Pascal Meiser of the Left Party condemned the exclusion of subcontractors and temporary employment agencies from documentation requirements, warning that such omissions facilitate unfair competitive advantages through tariff evasion. From the AfD, Peter Bohnhof argued that the legislation constitutes an undue infringement on economic freedom. Employer associations further denounced the bill, characterizing it as detrimental to economic growth and labeling it an “anti-growth” measure.
The Federal Government justifies the proposed regulation by pointing to the existing competitive imbalance, wherein companies not bound by collective agreements benefit from reduced labor costs and can thus submit more financially attractive bids for public contracts. To ensure effective enforcement, the establishment of a dedicated supervisory authority is envisaged. Following its initial reading in the Bundestag, the bill will undergo further examination in parliamentary committees and subsequently require approval from the Bundesrat to be enacted into law.
