The federal governments of recent years had three years to transpose the EU Directive on pay transparency into German law. Three years to finally take effective action against pay discrimination. What happened? Nothing. The implementation deadline passed on June 7.
For IG Metall, this is unacceptable. Christiane Benner, president of IG Metall, has strong words for this political failure: “Anyone who wants economic independence and more women in the workforce must finally ensure equal pay. Equal pay is a fundamental right, not just a nice-to-have.”
Equal Pay Is Not a “Nice-to-Have”
Equal pay for equal or equivalent work is one of the fundamental principles of the European Union. Nevertheless, women in Germany still earn significantly less than men on average. The pay gap has remained at a high level for years. Even among those with comparable qualifications and jobs, it stands at 6 percent.
Yet pay disparities don’t just happen on their own. They arise where comparisons are lacking, where biases play a role in promotions or pay decisions, where structures remain opaque, and where employees have no recourse.
This is precisely where the EU Pay Transparency Directive comes in. It requires companies to make their pay structures transparent and to review their internal pay practices. This creates clarity for both employees and employers.
The goal is simple: to identify and eliminate unjustified gender-based pay gaps. However, this requires greater transparency. Transparency is essential to making discriminatory differences visible in the first place and to eliminating them.
Delays Harm Everyone
Instead of taking this step, the federal government is letting the deadline pass, citing concerns for the economy. Yet the current delay harms everyone: companies lack planning certainty, and employees remain in the dark. “Companies and employees need legal certainty; the federal government must establish this now and implement the directive ambitiously,” Benner demands. “Companies with collective bargaining agreements can be granted exemptions regarding auditing and reporting.” This would help strengthen collective bargaining coverage.
Directive Could Bring Economic Benefits
Furthermore, implementing the directive would also bring economic benefits. After all, unequal pay has consequences. It leads to higher rates of poverty among older women, weakens purchasing power, and places a strain on social welfare systems. Fair pay, on the other hand, strengthens the business climate. Companies become more attractive, find skilled workers more easily, and can thereby ensure more stable employment trajectories.
Act now!
The EU has set the course. The need for action is clear. It is now crucial that the federal government does not further delay implementation. The demand from IG Metall, the DGB, and their sister unions is clear: The federal government must put an end to the uncertainty caused by the delay for companies, employees, employee representatives, and unions, and finally provide clarity. For greater wage transparency and pay equity!
