The act aims to reserve public contracts for companies providing fair working conditions. Initially proposed by the SPD during the previous legislative period, the bill was previously blocked by the Free Democratic Party (FDP). Although reintegrated into the current government’s coalition agreement, it remained the subject of intense negotiations with Chancellor Friedrich Merz’s conservative party.
Avoiding wage dumping in numerous public contracts
The Tariftreuegesetz stipulates that certain federal contracts may only be awarded to companies adhering to industry-wide collective agreements. This regulatory shift comes at a critical juncture: following years of infrastructure underinvestment, the Merz government recently approved a special €500 billion ten-year fund for infrastructure and climate neutrality.
As a Berlin correspondent for the French and Swiss press since the late 1990s, I cover a wide range of economic, political and social issues, with a particular focus on the German business and labour market. My areas of interest include co-determination, digitalisation, demographics and ESG/DEI policies.