Coalition Stalls Progress on Fair Wage Law

The German coalition government is facing roadblocks in advancing the proposed Tariftreuegesetz, a law aimed at ensuring fair wages for workers. According to reports, the Federal Ministry of Finance has vetoed the hearing of associations on the draft law, halting its progress.

This law, part of the coalition agreement between the SPD, Greens, and FDP, mandates that employees must be granted collective bargaining conditions for the duration of any federal contract. While the Ministry of Labor had recently shared a draft of the law with other cabinet members, the Finance Ministry demands a reduction in bureaucratic burdens on businesses before new obligations are introduced.

The hearing of states and associations is a crucial step in the legislative process, allowing them to provide input before the draft can be approved by the federal cabinet. Verdi union leader Frank Werneke criticized the delay, emphasizing the law's importance in preventing wage dumping and strengthening collective bargaining.

He warned that the FDP's blockade could damage the coalition's credibility. The situation underscores mounting tensions within the coalition, with significant implications for workers' rights and the government's political standing.