German employment rights to be strengthened

The new German coalition government, which took office last month, is committed to a series of measures that are likely to improve pay, reinforce collective bargaining and strengthen employee representation in the workplace.

The most obvious change, set out in the coalition agreement signed by the three parties in government — the social democratic SPD, the Greens and the business-friendly FDP — is a 22% increase in the national minimum wage from the current €9.82 (£8.45) an hour to €12.00 (£10.32). The timing is not yet decided but it is likely to be in the summer.

The agreement also commits the new government to make changes to procurement policy so public contracts at national level are only given to companies that observe the terms of the relevant collective agreements for their sectors.

Collective bargaining will be further strengthened by making it impossible for companies to avoid the terms of the agreements they have signed by simply transferring their activities to a new company.

On employee representation, the new government will give unions a right to electronic access to employees. And the public prosecutor will be able intervene where an employer attempts to hinder the setting up, or operations, of works councils.

In addition, companies will no longer be able to avoid or limit employees’ rights to representation at board level by changing their legal form.