Restrictions on Outsourcing in Germany's Meat Sector Industry

The German Occupational Health and Safety Inspection Act (ASKG), enacted in 2016, has brought about a significant transformation in the nation's meat industry. This landmark legislation, which prohibited the use of subcontracted labour and significantly curtailed temporary agency work, has proven to be a powerful tool in combating labour exploitation and improving occupational health and safety.

In 2021, the number of regular employees in the German meat industry rose by more than 23,000, an increase of about 18 percent compared to the previous year. This surge can be attributed, in part, to the ASKG, which ended the long-standing practice of subcontracting in the industry. Since the law's introduction, all formerly subcontracted workers have been directly employed by meat-processing companies.

The ASKG has led to a considerable improvement in housing standards for migrant workers, many of whom relied on company-provided accommodation. Moreover, it has significantly reduced excessive and unpaid overtime in the industry. Reported work accidents have also decreased significantly since 2021, indicating better enforcement of safety regulations.

The key implications of this legal reform include improved worker protection, reduction of exploitative practices, increased compliance and enforcement, and raising industry standards. By outlawing subcontracted labour, companies are now directly responsible for proper working conditions and fair compensation. This, in turn, reduces the risk of labour exploitation typical in subcontracting arrangements, such as wage theft or unsafe workplaces.

The ASKG serves as a potential model for other industries seeking to enhance labour rights and workplace safety. Potential models for other sectors with high risks of labour exploitation include extending the ban on subcontracted labour, strengthening inspection and enforcement regimes, and integrating labour regulations.

The European Parliament is also taking notice. They are likely to call on the Commission to initiate legal measures to protect and strengthen workers' rights in subcontracting chains. European trade unions have proposed an EU Directive on Subcontracting and Labour Intermediaries. The Parliament is also preparing an initiative report on abusive subcontracting practices across the EU.

Experts, such as Anneliese Kärcher, a doctoral candidate in labour law with a focus on social law at the University of Oldenburg and Mainz University of Applied Sciences, Şerife Erol, a senior researcher at the Institute of Economic and Social Research (WSI) at the Hans Böckler Stiftung, Thorsten Schulten, Head of the collective agreements archive of the Institute of Economic and Social Research (WSI) at the Hans Böckler Stiftung and an Honorary Professor at the Eberhard Karls University of Tübingen, and Manfred Walser, Professor of Labour Law and Business Private Law at Mainz University of Applied Sciences, have highlighted the ASKG as a successful strategy for combating extreme forms of labour exploitation.

In conclusion, the ASKG's impact in the meat industry demonstrates that statutory prohibition of subcontracted labour can be an effective tool for improving occupational health and safety and could serve as a blueprint for reforms in other sectors with high risks of labour exploitation.

Trade unions have called for collective bargaining to be extended to industries beyond the meat sector, citing the success of the General German Trade Union Confederation (DGB) in negotiations with meat-processing companies under the ASKG.
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The closely-watched impact of the ASKG on the meat industry is being reported in general news outlets, as journalists follow the stories of individual workers, industry leaders, and the effects on the broader German economy.