(de-news.net) – With the backing of the CDU/CSU, the SPD, and the Greens, the German Bundestag has formally passed the so-called Tariftreuegesetz, while the AfD voted against the legislation and the Left abstained, reflecting the polarized reception of the measure across the political spectrum. The law, though limited in scope to construction and service contracts and excluding supply agreements for items such as vehicles, office materials, or IT hardware, establishes a clear framework requiring that federal contracts valued at over 50,000 euros be awarded exclusively to companies that employ personnel under collective agreements or equivalent arrangements. This approach is intended to reinforce adherence to established labor standards while simultaneously ensuring the responsible allocation of public funds.

Supporters of the legislation emphasized that it is designed not only to create a level playing field for all businesses competing for federal contracts but also to strengthen the principles of collective bargaining by linking public procurement to fair remuneration and appropriate working conditions. In doing so, proponents argued, the statute aligns federal contracting practices with broader labor-policy objectives, signaling a commitment to social fairness and equitable employment practices. Nonetheless, representatives of economic associations raised cautionary concerns, suggesting that the mandatory reporting and verification requirements embedded within the law could render its practical implementation cumbersome. These groups warned that the resulting administrative burdens might complicate compliance and could potentially undermine the autonomy of collective bargaining arrangements, a core principle in Germany’s labor framework.

The AfD criticized the legislation as a violation of labor-market freedoms, framing it as an encroachment on the ability of employers and workers to negotiate terms independently, while the Left highlighted the remaining exemptions within the law as problematic, suggesting that they could create loopholes or inequities that limit its effectiveness. During the legislative process, supply contracts were formally removed from the draft, thereby narrowing the statute’s focus to the areas of construction and services and reinforcing its targeted approach to labor regulation in sectors with the most significant workforce implications.