At a glance
- The government adopted the national action plan on promoting collective bargaining (Plan).
- The Plan is required under the EU Minimum Wage Directive because Germany's collective bargaining coverage is below 80%.
- Five of the seven measures listed in the Plan are already in force.
- Only two legislative projects remain to be implemented: the reform of the Working Time Act and a digital right of access to workplaces for trade unions.
The EU Minimum Wage Directive requires all Member States with collective bargaining coverage below 80% to submit a national action plan to increase coverage. Germany's collective bargaining coverage stands at around 49%. The federal cabinet adopted the Plan in July and submitted it to the Bundestag in September 2026.
Action plan measures
The Plan lists seven measures, five of which are already in force:
- Federal Tariff Compliance Act (Act).
- Tax incentives for trade union members.
- Short-term contingent employment linked to collective bargaining.
- Qualification allowance.
- Climate protection contracts with facilitated conditions for employers bound by collective agreements.
The Act provides that the Federal Ministry of Labour and Social Affairs may, by statutory instrument, set sector-specific collective bargaining conditions. Contractors must commit to observing these conditions when performing public contracts, through a collective bargaining compliance pledge. However, the Act will only take practical effect once statutory instruments for individual sectors have been issued, and this has not yet happened.
Working Time Act
Only two legislative projects remain to be implemented. The first concerns the reform of the Working Time Act. The planned changes include:
- A shift from a daily to a weekly maximum working time.
- A mandatory electronic working time recording system.
- Extended Sunday working options for bakeries, confectioneries and libraries from 1 January 2027.
An internal working draft of the bill, presented by the competent Ministry in June 2026, has already attracted significant criticism. Under the draft, the increased flexibility, in particular the shift from a daily maximum working time limit to a weekly reference period, may only be regulated by collective agreement or, on the basis of a collective agreement, in a works or service agreement. Opt-out provisions in relation to the form and timing of electronic working time recording are also linked to collective agreements.
Digital right of access for trade unions
The second measure concerns the digital right of access for trade unions to workplaces. The previous coalition government had already put forward a far-reaching bill but was unable to pass it before the end of the legislative term. The Federal Labour Court also set clear limits on the right of access in its decision of 8 January 2025. The right of access is considered constitutionally doubtful in view of the freedom to conduct a business, the negative freedom of association and the employees' right to informational self-determination. The Plan now envisages a statutory provision in the current legislative term.
Key takeaways
The Plan largely refers to existing law. The real momentum comes from the outstanding measures on the Working Time Act and the digital right of access for trade unions. Employers should therefore closely follow the further legislative developments.
More to explore
