State parliament votes on collective bargaining law
From the beginning of 2024, public contracts in Mecklenburg-Vorpommern will only be awarded to companies that pay their employees collectively agreed or similar wages. The so-called Collective Bargaining Act, which includes further criteria such as sustainable management, will be put to the vote in the state parliament on Wednesday (10.00 a.m.). The red-red coalition, which initiated the amendment to the law, hopes that it will provide impetus for better pay for employees and more fair competition among providers.
Large sections of the opposition as well as the business community reject the high wage targets and see them as political interference in the autonomy of the social partners. In addition, opponents of the law point out that employees in companies in which the state has a stake have often not received collectively agreed wages to date, meaning that the state itself does not meet the requirements.
At the beginning of the session, the parliamentarians discuss the consequences of the severe storm surge that caused considerable damage along the Baltic coast in October. There is still no comprehensive damage assessment. It is estimated that around six million euros will be spent on repairing the dunes and replenishing the beaches alone. The agenda includes voting on further legislation. In addition, the first reading will include a discussion on an amended law on store closures and the reorganization of financial relations between the state and local authorities.
The business community expresses their opposition to the Collective Bargaining Act due to its high wage targets, viewing it as excessive tariffs interfering with social partners' autonomy. Moreover, the severe storm surge that hit the Baltic coast in October is a pressing issue for the parliament, requiring discussions and potential legislation for damage repairs and reconstruction costs.
Source: www.dpa.com
