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Germany's Bundestag Votes on Controversial Fair Wage Law Amid State Backlash

A last-minute compromise reshapes Germany's wage rules—but not everyone is on board. Discover why states are pushing back against the new exemptions.

The image shows an open book with handwriting on it, which is likely a document from the German...
The image shows an open book with handwriting on it, which is likely a document from the German Federal Republic of Germany. The text on the paper is likely related to the document, and there are watermarks at the bottom of the image.

Bundestag votes on wage agreement compliance law - Germany's Bundestag Votes on Controversial Fair Wage Law Amid State Backlash

Germany's Bundestag is set for a busy session this week. On Thursday, lawmakers will vote on the Fair Wage Compliance Act after a last-minute compromise. The agenda also includes debates on drone security, pension reforms, and a high-profile political scandal.

The revised wage law now excludes vehicle deliveries, equipment, and materials from strict compliance rules. But several states have already voiced strong opposition to the changes.

The Fair Wage Compliance Act was designed to ensure federal public contracts go only to firms with collective bargaining agreements. Under the original plan, all contractors would have faced strict wage checks. But after negotiations, the coalition agreed to narrow its scope.

From now on, fair wage rules will apply only to public construction and service contracts. Deliveries of vehicles, equipment, and materials will be exempt. This shift has drawn criticism, particularly from six states—Bavaria, Hesse, Saxony, Thuringia, Baden-Württemberg, and Lower Saxony—where officials have largely rejected the exceptions.

The Bundestag's Thursday session begins at 9:00 AM with the wage law vote. Later, lawmakers will tackle other key bills: a crackdown on drone threats, an overhaul of private pensions, and faster approvals for transport projects. Two additional reforms—on paternity disputes and the High Seas Protection Act—are also up for discussion.

Beyond legislation, the chamber will hold a special debate on the AfD relatives affair. The controversy involves allegations of nepotism within the far-right party, which has dominated headlines in recent weeks.

The vote on the Fair Wage Compliance Act marks a turning point for public procurement rules. If passed, the exemptions will take effect despite resistance from multiple states. Meanwhile, the Bundestag's packed agenda reflects broader efforts to address security, infrastructure, and social policy before the session closes.

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