Fidelity Pricing Law: Criticism Arises Over Excessive Administrative Burden from Surveillance Committee - Tariff Law Under Scrutiny: Control Council Slams Excessive Bureaucracy
The Tariftreue Law, a regulation in Germany aimed at ensuring fair wages for workers in public contracts, is facing criticism from the independent Norm Control Council. The Council, which evaluates regulatory impacts, has expressed concerns about an excessive bureaucratic burden for companies and administration.
The Tariftreue Law, drafted by Federal Minister of Labor Bärbel Bas (SPD), requires companies to adhere to industry-standard collective agreements for federal contracts valued at 50,000 euros or more. However, the Council finds the administrative requirements imposed on companies and contracting authorities to be complex, leading to a significant increase in paperwork and administrative efforts.
Ensuring and monitoring compliance with the Tariftreue Law can be challenging. The Council suggests that relying on declarations and documentation by companies may allow for circumvention or uneven application. Critics argue that these issues could inadvertently raise costs for public procurement and limit competition.
The Norm Control Council also finds it inappropriate that the draft of the Tariftreue Law proposes the establishment of an organization to enforce compliance with tariff provisions at the German Pension Insurance. Instead, the Council recommends entrusting the task to the customs administration.
The Council's statement does not specify a suggested value for the increased threshold of public contracts, nor does it mention the penalties for non-compliance with the Tariftreue Law. It also does not address the requirements for remuneration, Christmas bonuses, vacation time, and rest periods under the law.
Despite these criticisms, the cabinet is expected to decide on the Tariftreue Law draft on Wednesday. If you want a more detailed discussion or references directly from the Norm Control Council's reports, please let me know.
- The Norm Control Council's concerns about the excessive bureaucratic burden of the Tariftreue Law, as well as the potential for circumvention and uneven application, highlight the need for a community policy that emphasizes vocational training and simplified regulatory processes in policy-and-legislation.
- In light of the Norm Control Council's recommendations for streamlining the enforcement of tariff provisions and addressing the requirements for remuneration, Christmas bonuses, vacation time, and rest periods, there is a growing need for politicians and the general news media to focus on these issues and advocate for vocational training programs to equip workers with the skills necessary to navigate the complexities of the Tariftreue Law and similar regulations.
