On 6 August, Germany’s Federal Cabinet approved a draft law that would require companies bidding for public contracts to comply with sectoral collective agreements. The measure is intended to revive declining membership of such agreements and curb unfair competition from firms that refuse to recognise them.
Germany’s cabinet has approved the draft law on ‘loyalty to collective agreements’ (Bundestariftreuegesetz) — a measure previously backed by the Social Democratic Party (SPD) in the last parliament but shelved after the coalition collapsed and snap elections were called in February 2025. The content of the bill is fairly straightforward. It stipulates that companies wishing to bid for public contracts will in future have to grant their employees the working conditions set out in the...
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Article authors
Thomas Schnee
Freelance