Wage determination and collective bargaining policy should remain in national hands

BDA-CEO Steffen Kampeter comments on the ECJ ruling on the EU Minimum Wage Directive:

Wage determination and collective bargaining policy belong in national hands

Berlin, November 11, 2025. "The ECJ has handed down an overreaching ruling and upheld large parts of the directive. Continuing this policy will not make Europe a success story.

However, minimum wages and collective bargaining agreements are solely the responsibility of the member states. Wage determination and collective bargaining policy must not be further politicized. Remuneration must be determined where companies and social partners bear responsibility.

However, the partial annulment of the directive also shows that the ruling must not be misunderstood as a carte blanche for further EU intervention in collective bargaining autonomy and social policy. The decision does not allow the EU to actively pursue wage and collective bargaining policy through the back door. The Commission must not continue to overreach its powers. Otherwise, this will not be the Europe of diversity and collective bargaining autonomy that we want.

The German government must now act with even greater determination: it must clearly reject further EU intervention in social policy and focus on competitiveness and reducing bureaucracy. Europe needs less regulation, not more. The social partners remain the only appropriate actors for fair and appropriate working conditions.

As far as national implementation is concerned, the German Minimum Wage Act can remain unchanged. It stipulates that the social partners decide on the minimum wage level."