EU Collective Bargaining Deadline Passes – Germany Among Six Without a Plan, Despite New Legislation
13.06.2026 - 00:12:03 | boerse-global.de
Germany has missed the European Union’s end-of-2025 deadline to submit a national action plan on collective bargaining coverage, even as a new federal law meant to strengthen wage standards took effect in May. The country finds itself in a small group of EU states that have yet to deliver the required blueprint, alongside Croatia and Luxembourg.
Only 49 percent of German employees currently work in companies bound by collective agreements. The EU Minimum Wage Directive requires member states to reach 80 percent coverage or publish comprehensive strategies to narrow the gap. Out of 18 EU countries obliged to act, twelve have already filed their plans. Greece, for example, submitted its action plan despite having just 28 percent of workers covered.
Germany’s Federal Ministry of Labour and Social Affairs said the overdue plan is still being coordinated within the government. The Left Party called the delay a “disgrace” and warned that Brussels could launch infringement proceedings.
New federal law includes major exemptions
The Bundestariftreuegesetz (Federal Pay-Transparency Law), which came into force on 1 May, requires companies bidding for federal contracts worth 50,000 euros or more to guarantee collective-agreement-level wages. But the Education and Science Union (GEW) has criticised the law’s numerous carve-outs.
Crucial parts of the education and research landscape are untouched. Vouchers issued by the Federal Employment Agency and language courses run by the Federal Office for Migration and Refugees (BAMF) are excluded from the tariff obligation. The GEW warned that many workers in adult education will continue to lack collective-bargaining protection.
Non-university research institutes also sit in a grey zone. The Fraunhofer, Max Planck, Helmholtz and Leibniz associations employed more than 100,000 full-time staff in 2024, yet most of their institutes are not bound by collective agreements. As a result, doctoral researchers often earn just 65 percent of the standard public-sector pay scale (TVöD). The GEW is calling for tariff compliance to be made a mandatory condition for any state funding.
Public opinion backs the push: a Forsa survey from February found that 59 percent of respondents support a tariff obligation on public procurement contracts.
Hessen forges its own path
On 11 June, the state parliament of Hessen passed its own public procurement and tariff law. The coalition of the Christian Democratic Union (CDU) and Social Democratic Party (SPD) aims to clear a backlog of infrastructure projects by raising the thresholds for direct awards.
For supplies and services, the direct-award ceiling jumps from 10,000 to 100,000 euros. For construction work, it goes to 750,000 euros. Under the new rules, only companies paying collectively bargained wages may bid. Subcontractor chains are capped at three links.
The German Trade Union Federation (DGB) and the Verdi union described the law as a paradigm shift. Businesses see it differently: the Association of Hessian Employer Organisations (VhU) warned that the expanded bureaucracy requirements will deter companies. The Free Democratic Party (FDP) accused the government of overloading procurement law. The Association of Towns and Municipalities, however, welcomed the reduced administrative burden.
Despite both the federal and state-level initiatives, Germany remains far from the EU’s 80-percent target – and with its action plan still in limbo, the clock is ticking.
