Germany criticized for lagging on EU collective bargaining goals

Germany is falling short of European Union targets regarding collective bargaining coverage, with only about half of its workforce employed in companies adhering to such agreements. This situation places Germany among six EU countries that have yet to submit a required action plan to the EU Commission. The Economic and Social Science Institute (WSI) of the Hans Böckler Foundation, which is close to trade unions, has criticized this delay. The WSI study indicates that Germany's collective bargaining coverage rate has been declining for years. The EU mandates that countries with coverage below 80 percent must present a plan to foster collective bargaining, seen as crucial for fair working conditions and setting minimum labor standards. Despite a commitment in the coalition agreement to increase collective bargaining, progress has stalled. Following a high-level meeting in November 2025, no agreement was reached between unions and employer associations, despite the government soliciting their input. The Federal Ministry of Labor and Social Affairs stated that the National Action Plan for the Promotion of Collective Bargaining is still being coordinated within the government. The Left party condemned the government's inaction as a "disgrace" and warned of potential costly EU infringement proceedings. They advocate for easier generalization of collective agreements to apply them across entire sectors. The WSI suggests that an action plan should promote industry-wide bargaining and offer incentives for employers to join collective agreements, with clear timelines and concrete measures developed in consultation with unions and employers. Greece is cited as a positive example for its approach.