Rhineland-Palatinate to update fair wage law for public contracts

Rheinland-Pfalz is set to revise its state law on fair wages for public contracts, aiming to align with the new federal legislation and bolster fair competition. Minister Sabine Bätzing-Lichtenthäler announced that the Ministry of Labor is working on an amendment to the State Fair Wage Act. The goal is to secure fair competitive conditions for public contract awards without imposing unnecessary bureaucracy on businesses, potentially benefiting small and medium-sized enterprises.

Bätzing-Lichtenthäler noted that while Rheinland-Pfalz was an early adopter of fair wage laws, other states and the federal government have since advanced. The new federal law requires companies seeking federal public contracts to pay their employees according to industry-standard collective agreements and maintain fair working conditions, with a threshold of 50,000 euros for federal contracts. Specific sectors like construction, building cleaning, IT, logistics, transport, and traffic are also covered.

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We were one of the first federal states with a fair wage law. Meanwhile, other states are further ahead than we are, and there is now a federal fair wage law.

The state aims to prevent wage dumping and strengthen companies that adhere to collective agreements. A draft law is expected by the end of the year, followed by consultations with stakeholders including employers, associations, and unions. The minister emphasized that the new law will avoid excessive bureaucracy and consider the economic feasibility for businesses, particularly regarding contract volumes. The state will determine appropriate benchmarks, potentially adopting sectors listed in the federal law, while preserving existing regulations for public transport.

"We need to ensure that we have good work, that people are paid well, and that it remains feasible for the economy," Bätzing-Lichtenthäler stated. "We don't want to destroy the economy; we want to bring together good work and fair competitive conditions." She assured that both business and union representatives would be adequately consulted.

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We need to ensure that we have good work, that people are paid well, and that it remains feasible for the economy. We don't want to destroy the economy; we want to bring together good work and fair competitive conditions.