Tariff Compliance Law: Bureaucracy Overshadowing Equitable Competition
In recent developments, a new law known as the Tariffidelity Law has been proposed in Germany, aiming to ensure fair consideration of companies bound by collective bargaining agreements in public procurement. However, there is a lack of publicly available information about the law's specifics, its impact on the construction industry's bureaucracy, and its influence on fair competition.
The Association of German Construction Industry e.V., a key player in the construction sector, has a document named "33-25_TariffidelityLaw.pdf" that is associated with the law. The document, approximately 155 kB in size, details the requirements of the draft law, which includes a Tariffidelity pledge for up to 20 remuneration groups with contractual penalties and exclusion from tenders.
One of the main concerns raised by the Association is the potential challenge for main contractors to monitor subcontractors' compliance with these requirements in a data protection-compliant manner. The Association also expresses disappointment that the draft law misses the opportunity to strengthen collective bargaining membership by presuming compliance with the association's collective bargaining agreements.
René Hagemann, the deputy managing director of the Association of German Construction Industry e.V., has made a statement regarding the cabinet decision on the Tariffidelity Law. However, the exact statement is not currently available.
The draft law also requires risk management documentation, including wage statements, payment records, employment contracts, and working time records. The goal of the Tariffidelity Law is to protect and promote original collective bargaining agreements, but it contradicts the coalition agreement, which states that bureaucracy, proof requirements, and controls should be limited to a minimum.
The law is the subject of a cabinet decision, but the context or details of this decision are not specified. It is also expected that uniform tariffidelity regulations at federal and state levels will be achieved in cooperation with the federal states.
As the Tariffidelity Law is a relatively recent and specialized legislative development, it may not yet be fully covered in publicly available sources or under this exact terminology. Therefore, further research may be required to fully understand the implications of this law on the construction industry and fair competition in Germany.
- The Association of German Construction Industry e.V. has expressed concerns about the new Tariffidelity Law, particularly regarding the challenge for main contractors to monitor subcontractors' compliance with the requirements in a data protection-compliant manner.
- The draft Tariffidelity Law, if implemented, would require risk management documentation including wage statements, payment records, employment contracts, and working time records, with the aim of protecting and promoting original collective bargaining agreements.
- The Tariffidelity Law, although a subject of recent cabinet decision, may not be fully covered in publicly available sources or under this exact terminology, making further research necessary to grasp its implications on the construction industry and fair competition in Germany.
