The German government has set an ambitious target: 80 percent of workers covered by collective bargaining agreements. But official figures show the actual rate stands at just 49 percent — and the state itself is part of the problem.
A review of 57 federally owned companies found that only 16 have their own collective wage contracts. Eleven of those state-run enterprises have no collective bargaining coverage at all, not even through alignment with existing sectoral agreements. Those numbers have barely budged since 2023.
A lawmaker from the Left Party described the situation as a direct contradiction of the
The pressure to act comes from Brussels. The EU’s Minimum Wage Directive 2022/2041 requires member states where collective bargaining coverage falls below 80 percent to draw up an action plan. Minister Bärbel Bas has submitted a draft proposal aimed at systematically increasing the share of workers covered by collective agreements.
Since February 2026, the Bundestag has also been debating a new public procurement law — a so-called Tariftreuegesetz — that would give preference to companies with collective wage agreements when awarding public contracts. Business associations and the construction industry have pushed back, warning of excessive bureaucracy and interference with the principle of collective bargaining autonomy.
While lawmakers remain deadlocked, some sectors are moving ahead on their own. Verdi, Germany’s largest service workers’ union, announced a pilot agreement for Bavaria’s wholesale and foreign trade sector. Around 240,000 employees will receive a 2.9 percent pay increase starting in August, followed by an additional 2.1 percent in May 2027. The deal runs for 24 months.
Elsewhere, progress is slower. Negotiations for roughly 11,000 workers at northern German seaports began on Monday, with unions demanding an 8.2 percent raise or at least €2.50 more per hour. In the retail sector, talks have stalled entirely — employers cancelled scheduled meetings across several federal states until mid-August.
Separately, a significant change in occupational health and safety takes effect on August 1. Parkinson’s syndrome will now be officially recognised as an occupational disease when it results from long-term exposure to pesticides. Workers in agriculture and forestry diagnosed under those conditions become eligible for medical treatment and financial benefits from the statutory accident insurance system.
