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.
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Article authors
Thomas Schnee
Correspondent in Germany
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.