Germany misses EU deadline for collective bargaining action plan as coverage drops to 49%

Germany has failed to meet a European Union deadline to present a national action plan for strengthening collective bargaining coverage, according to a study by the trade-union-affiliated Hans Böckler Foundation's Institute of Economic and Social Research (WSI). The EU's 2022 Minimum Wage Directive requires member states where fewer than 80% of employees work under collective agreements to submit a plan to the European Commission. In Germany, that figure stands at just 49% and has been declining for years.

The EU framework and Germany's shortfall

Nine EU countries exceed the 80% threshold, led by Italy and Belgium at 100% coverage, followed by Austria, France, Spain, Finland, Sweden, Portugal, and Denmark. These states share two features: sector-wide collective bargaining as the primary negotiation level and extensive state mechanisms to support agreements, including broad and effective options for declaring agreements generally binding. The remaining 18 EU countries were required to submit action plans by the end of 2025. By May 2026, only twelve had done so. Germany, Croatia, Luxembourg, Slovenia, Hungary, and Cyprus remain non-compliant.

Stalled talks in Berlin

The WSI study notes that although the CDU/CSU and SPD committed to higher collective bargaining coverage in their coalition agreement, no plan has materialised. The federal government invited unions and employer associations to submit proposals and convened a high-level meeting with the German Trade Union Federation (DGB) and the Confederation of German Employers' Associations (BDA) in November 2025. Positions proved largely irreconcilable, and no consensus emerged within the coalition either.

No action plan has been submitted, even though the CDU/CSU and SPD committed to the goal of higher collective bargaining coverage in their coalition agreement.

The ministry's response

The Federal Ministry of Labour and Social Affairs stated that work on the plan continues. A spokesperson told reporters that "the National Action Plan to Promote Collective Bargaining (NAP) is still being coordinated within the federal government." No timeline for completion was provided.

What the WSI wants to see

The WSI argues that an effective action plan should promote the expansion of sector-wide collective bargaining and create incentives for employers to join agreements. Unions and employer associations should be involved, and the plan should include concrete measures with a clear timetable. The study criticises most submitted national plans for relying on non-binding information and promotional measures.

Many national action plans contain little more than declarations of intent.

Greece as an unexpected model

The study points to Greece as a model, despite its own low collective bargaining coverage of 28%. The Greek action plan, the WSI says, fulfills the directive's requirements almost completely. The contrast highlights a gap between formal compliance and substantive outcomes: most other submitted plans lean heavily on soft measures such as improved data collection or new research projects, while concrete steps to strengthen the organisational power of unions or employer associations are largely absent.