The DSLV warns of the negative effects of the Federal Tariff Compliance Act on the competitiveness of small and medium-sized logistics companies.
The Federal Government intends to make the tariff-based working conditions of the Federation mandatory when awarding public contracts with the Federal Tariff Compliance Act. The draft submitted by the Federal Ministry of Labour and Social Affairs and the Federal Ministry for Economic Affairs and Energy provides for comprehensive regulations on tariff compliance starting from a threshold of 50,000 euros without VAT.
Tariff Compliance as Execution Condition
A central component of the law is the obligation for contractors to ensure tariff-based working conditions during the execution of a public contract. This includes remuneration, paid minimum annual leave, and – for contracts lasting more than two months – maximum working, rest, and break times. These conditions are to be specified by a corresponding legal ordinance.
The German Trade Union Confederation (DGB) fundamentally welcomes the draft law.
“With this, the Federal Government is taking a big step towards tariff-secured wages and working conditions in the public procurement of the Federation – we explicitly welcome this,” said DGB board member Stefan Körzell.
From the DGB's perspective, the law is a lever for more binding tariffs and fair competition.
The DSLV Federal Association of Freight Forwarding and Logistics views the initiative very differently. The association
criticizes that the planned regulations deeply interfere with operational leeway. DSLV CEO Frank Huster warns:
“The state must not make tariff compliance the entrance ticket for public contracts.”
The association points out that many freight forwarding and logistics companies use internal collective agreements or individual, above-tariff remuneration models, which would effectively be devalued by the law.
Inclusion of Subcontractors and Liability
In addition to the main contractor, subcontractors and temporary employment companies commissioned by them are also obliged. The contractor is liable for violations in the supply chain like a self-debtor – however, this liability lapses if an appropriate prequalification certificate is available.
The DSLV considers this subcontractor liability particularly problematic. The liability shifts economic risk to service providers and significantly hinders the use of specialized subcontractors in practice in division of labor logistics.
Huster sees this as a “tariff compliance guarantee in the entire supply chain,” which particularly overwhelms medium-sized enterprises.
The DGB, on the other hand, considers the extension to subcontractors necessary to effectively secure tariff standards. The proposed possibility of proving subcontractors through certificates could also contribute to limiting bureaucracy – provided it is designed practically.
Inspection Unit and Control Structure
The law provides for the establishment of a Federal Tariff Compliance Inspection Unit at the German Pension Insurance Knappschaft-Bahn-See. This unit is supposed to check, based on indications,
whether contractors and their subcontractors comply with the tariff requirements. In case of violations, it can issue administrative acts and inform the competition register.
This is a control structure that the DSLV also rejects. The association sees in this a costly control apparatus that further increases the bureaucratic burden for small and medium-sized enterprises. Huster criticizes:
“In the future, it would still be more difficult for them to participate in public procurement procedures with new bureaucratic hurdles.”
The DGB also advocates for a “low-bureaucracy law” but sees the state control structure as necessary to effectively implement legal requirements. According to the DGB, reduction of bureaucracy must not be at the expense of enforceability.
Threshold and Exceptions
The law is to apply to contracts with an estimated contract value starting from 50,000 euros. According to the DGB, this threshold is set too high. Körzell warns that as a result “27.5 percent of the approximately 22,000 contracts awarded annually by the Federation” would not be covered. He calls for including smaller tenders in the tariff compliance obligation.
The DSLV, on the other hand, criticizes not the threshold but the extension of the regulations to low-threshold tenders. According to the association, the tariff compliance as a de facto requirement for participation has negative consequences for non-tariff-bound medium-sized enterprises.
Additionally, the draft includes a transitional regulation:
For contracts to meet the needs of the Bundeswehr, the law does not apply until the end of 2032. The DGB finds this exception incomprehensible. Körzell demands a uniform rule:
“Cheapest offers should no longer receive the award for public contracts – this must also apply to the Bundeswehr.”
Limitation to Certain Types of Services
The law is only to apply to services provided domestically. Additionally, the scope is limited to certain types of contracts. Especially pure delivery services are not fully covered according to the DGB. Körzell sees this as a “significant limitation” that restricts the application of the law too strongly.
Criticism of the Legislative Process
Finally, the DSLV expresses formal concerns about the legislative process. The associations only had three working days to comment – in the middle of the summer break. According to Huster, this “raises doubts about how seriously the impacts on affected sectors are taken.”
The planned Federal Tariff Compliance Act is facing resistance in the logistics industry, while unions welcome it as an overdue measure to strengthen tariff binding. Points of contention are particularly the inclusion of subcontractors, subcontractor liability, the level of the threshold, and the extent of the scope. The law is set to come into force no earlier than January 1, 2026, and will then affect all newly initiated procurement procedures of
