Union demands mandatory company pensions for all German employees

The German Trade Union Confederation (DGB) is advocating for the implementation of mandatory company pension plans for all employees as a key component of the upcoming pension reform. DGB Chairwoman Yasmin Fahimi stressed that employers must contribute to the financing of these plans, ensuring they serve as a supplement to the statutory pension system.

Fahimi stated that these company pension schemes should be organized through collective bargaining agreements. She highlighted that approximately 20 million employees in Germany currently do not have access to any form of occupational pension, often because they work in companies without collective wage agreements. The unions are prepared to collectively regulate this for all employees based on such agreements.

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Occupational pensions must not be unilaterally at the expense of employees.

For companies not bound by collective agreements, Fahimi suggested that employees could be integrated into existing models under specific conditions. While the exact funding structure for this additional pension provision remains open, Fahimi made it clear that employers will be obligated to participate. "Occupational pensions must not be unilaterally at the expense of employees," she asserted, warning against simply obligating employees and pushing them "into the arms of the insurance industry."

Anticipating potential pushback due to the current economic climate, Fahimi pointed out that mandatory pension contribution rates in most European countries are higher than what might be proposed in Germany. She argued that the current system leaves many employees without adequate supplementary retirement income, necessitating a reform that ensures broader coverage and shared financial responsibility.

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and pushing them into the arms of the insurance industry.