WSI criticizes low collective bargaining coverage: Germany falls short of EU requirements

The EU Minimum Wage Directive obliges member states with collective bargaining coverage below 80 percent to submit an action plan to the European Commission. The deadline for this expired at the end of 2025. According to the WSI, a total of six EU countries have so far not met this obligation: in addition to Germany, these are Croatia, Luxembourg, Slovenia, Hungary, and Cyprus.

Background: The EU Minimum Wage Directive

The Federal Ministry of Labour and Social Affairs stated in response to a request that the National Action Plan for the Promotion of Collective Bargaining (NAP) is still being coordinated within the federal government. "Der Nationale Aktionsplan zur Förderung von Tarifverhandlungen (NAP) wird innerhalb der Bundesregierung weiterhin abgestimmt", the ministry said. No concrete steps or timetable were provided.

Pascal Meiser, labor market policy spokesperson for the Left faction in the Bundestag, described the failure to submit the action plan as an "Armutszeugnis" for the federal government. He also warned that the government risked an EU infringement procedure, which could become costly for German taxpayers. Meiser simultaneously called for a simplification of the general extension procedure so that collective agreements can more easily be extended to entire industries in the future.

Criticism from the WSI and the Left faction

According to the WSI, collective bargaining coverage in Germany has been declining for years. The institute criticizes that many national action plans in the EU barely go beyond non-binding informational and promotional measures. "Viele nationale Aktionspläne enthalten kaum mehr als Absichtserklärungen", the WSI study states.

The WSI considers the Greek action plan to be comparatively exemplary. Although Greece has a collective bargaining coverage of only 28 percent, it largely meets the requirements of the EU directive with its plan, according to the institute. The WSI therefore recommends that an effective action plan should promote the expansion of industry-wide collective agreements and create incentives for employers to bind themselves to collective agreements. In addition, trade unions and employers should be involved, and the measures should be backed by concrete steps and a clear timetable.

Greece as a model and Berlin's efforts

The federal government had called on trade unions and employer associations to submit proposals for an action plan. A summit meeting in November 2025 between the government, trade unions, and employers, however, produced no results. The goal of higher collective bargaining coverage is also anchored in the coalition agreement between CDU/CSU ("Union") and SPD; so far, however, there is no binding implementation plan.

Against this backdrop, pressure is growing on the federal government to submit an action plan promptly. Otherwise, according to the assessment of the WSI and the Left faction, not only political but also financial damage threatens from a possible infringement procedure by the EU Commission.

The WSI emphasizes that higher collective bargaining coverage would not only be of symbolic importance. Collective agreements secure wages, working hours, and working conditions, thereby contributing to the stability of the labor market, it says. Without binding rules, a growing share of employees remains without collective bargaining protection.