Resolution approved by the Council of Ministers concerning the Community's current state.
In a significant move towards improving employment conditions, the Bremen Senate has established a new minimum wage regulation for public contracts, effective from May 1, 2024. The decree, passed on April 16, 2024, aims to ensure fair wage standards for workers involved in public contracts within Bremen.
The minimum wage set for public contracts in Bremen is €13.20 per hour. This wage applies to all contracts concluded by the Bremen Senate and the Senate administration, including contracts with private third parties that relate to public tasks. The scope of application is broad, covering numerous sectors and activities such as construction, cleaning, security services, facility management, landscaping, and gardening, among others.
This regulation extends the minimum wage requirement to companies bidding on or executing public contracts in Bremen for these services. The goal is to reduce wage dumping in public procurement and improve working conditions for employees.
Bremen's minimum wage regulation for public contracts aligns with similar measures taken by other German states. It reflects a broader trend in Germany to enforce minimum wages through public contracting requirements to uphold labor standards.
The German Trade Union Confederation and industry associations in Bremen are actively supporting this reform, which is part of a larger reform of the Bremen Tariff Loyalty and Award Act, initiated in 2022. The reform process is aimed at regulating criteria for the awarding of public contracts, including minimum wage requirements and ecological and social criteria.
Senator for Labor, Dr. Claudia Schilling, expressed hope that the reform process will strengthen collective bargaining. A new system with penalties will be able to target violations of minimum wage more effectively. An activity-based minimum wage will be introduced, with the Senate setting branch-specific minimum wages for different activities each year.
Bremen aims to set a nationwide example with this reform, as the federal government is working on a similar law. The regulation is a step forward in ensuring fair wages for workers on public contracts, contributing to a more equitable and sustainable workforce in Bremen.
The new minimum wage regulation in Bremen, a part of the larger Bremen Tariff Loyalty and Award Act reform, will be effective from May 1, 2024. This policy-and-legislation, which aims to improve working conditions, extends the minimum wage requirement to companies involved in public contracts, covering sectors like construction, cleaning, and gardening (general-news). The legislation is part of a broader political effort to enforce minimum wages and uphold labor standards in Germany.
