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ECJ ruling on collective bargaining: Millions are protected from wage dumping!
The ECJ confirms the EU minimum wage directive, which calls on the DGB to come up with an action plan for higher collective bargaining in Brandenburg.
ECJ ruling on collective bargaining: Millions are protected from wage dumping!
A significant step for employee rights was taken today, November 11, 2025, by the European Court of Justice (ECJ). The ECJ has confirmed the key aspects of the EU Minimum Wage Directive. This is not only a reason to be happy, but also represents an important signal for a more social Europe, as dgb.de reports.
The directive requires EU member states to ensure that collective bargaining coverage is strengthened in states with fewer than 80 percent employees. Particularly in the federal states of Berlin and Brandenburg, collective bargaining coverage among companies is noticeably low. The German Federation of Trade Unions (DGB) in Berlin-Brandenburg points out that employees, social insurance companies and the tax authorities miss out on billions of dollars every year that would be available to employees if there were nationwide collective bargaining.
Financial losses and need for action
DGB calculations show that the lack of collective bargaining in Berlin leads to an annual loss of around 2.6 billion euros for social insurance, coupled with a further loss of around 1.4 billion euros in tax revenue. It remains to be seen that employees without a collective agreement in Berlin earn 1,904 euros less net, while in Brandenburg it is even 3,823 euros.
If the collective agreements were to be applied across the board, it would be possible to provide employees in Berlin with 1.895 billion euros and in Brandenburg with 1.892 billion euros more annually. The DGB is therefore calling for a rapid action plan to strengthen collective bargaining, which should be developed by the federal government in order to promote social cohesion.
Important demands for the future
DGB board member Stefan Körzell sees the ECJ decision as a happy day for millions of employees in Germany and the entire EU. He demands that the federal government now also take action and start the action plan, as provided for in the EU minimum wage directive. The directive requires member states to set their own criteria for appropriate minimum wages, which means that Germany has the opportunity to review the regulation and improve it if necessary.
The need for clear regulations on the labor market is particularly emphasized in this discussion. Without effective protection against wage dumping and arbitrariness on the labor market, employees, especially in the low-wage sector, risk working under conditions that do not correspond to a fair and equitable wage.
With a clear focus on collective bargaining, the DGB sees the opportunity not only to strengthen the purchasing power of employees, but also to increase the competitiveness of companies. Only with fair wages can good working conditions be created, which ultimately benefit trade and the entire economy.