Ongoing uncertainties regarding the capacity to negotiate collective agreements of the Employers’ Association Diakonischer Dienstgeberverband Niedersachsen e. V.
The question of the capacity to negotiate collective agreements of the Diakonischer Dienstgeberverband Niedersachsen e. V. (DDN) has recently gained renewed relevance following a decision by the Federal Labor Court (decision dated August 7, 2025, Ref.: 6 AZR 172/24). Despite various current developments, doubts about the association’s capacity to negotiate collective agreements continue to persist. The proceedings demonstrate that the legal and factual prerequisites for the capacity of an employers’ association to negotiate collective agreements require special scrutiny.
The central importance of the capacity to negotiate collective agreements
The capacity of an association to negotiate collective agreements is a fundamental prerequisite for acting as a party to collective bargaining agreements and concluding valid collective agreements with trade unions. The legislator imposes strict requirements on such capacity, which stem from the principle of freedom of association (Art. 9 para. 3 GG) and supplementary labor law regulations.
The core idea is that an association is only deemed capable of negotiating collective agreements if it is independent, established for the long term, appears organizationally effective, and moreover demonstrates the necessary bargaining power within its area of responsibility. In practice, this means that membership numbers, internal infrastructure, and actual area of influence must be transparently disclosed and critically evaluated.
The proceedings before the Federal Labor Court
Background of the proceedings
The basis for the proceedings was the judicial review of whether the DDN possesses the required capacity to negotiate collective agreements. For some time, trade union representatives have questioned whether the association meets the fundamental minimum requirements – particularly regarding membership structure, organizational bargaining power, and independence of association activities. These doubts are especially voiced with regard to the scope of the organizational area and the actual representation of employers in the diaconal sector of Lower Saxony.
Content of the Federal Labor Court decision
The Federal Labor Court emphasized that a conclusive assessment of the capacity to negotiate collective agreements is currently not possible, as key factual findings are lacking. In the course of the previous proceedings, sufficient findings regarding the structure, membership base, and organizational effectiveness of the DDN had not been presented. The court underlined that collective bargaining autonomy is particularly protected and that strict requirements must be applied when ascertaining the capacity to negotiate collective agreements in order to safeguard the bargaining power of the parties to collective agreements.
The case was therefore referred back to the Regional Labor Court for further clarification of the facts. The outstanding questions concern in particular the consolidation and scope of the level of organization, as well as the real ability of the association to enforce collective bargaining agreements.
Impacts on collective agreements and labor relations
The challenge to an employers’ association’s capacity to negotiate collective agreements has far-reaching consequences for the affected companies and employees. Should an association lack such capacity, collective agreements it concludes could not have normative effect. This would mean that working conditions would have to be arranged individually, which could lead to increased legal uncertainty and substantial operational insecurity.
Moreover, the question of capacity to negotiate collective agreements is directly linked to the reliability of collective regulations in the area of church employers, in which the association operates. The judicial restraint in the evaluation emphasizes that a final decision can only be made after comprehensive fact-finding.
Classification and further procedure
The proceedings illustrate the complex prerequisites as well as the great importance of collective bargaining autonomy in German labor law. Employers’ associations—especially in the church-diaconal sector—face particular expectations with regard to organizational clarity and bargaining power.
Furthermore, it is clear that it is in the interest of all parties involved to document structural and organizational evidence of meeting the requirements for collective bargaining capacity at an early stage and, if necessary, to present this in a manner capable of standing up in court to employee representatives or the responsible courts.
With its interim decision, the Federal Labor Court emphasized the principle that capacity to negotiate collective agreements cannot be presumed but must be determined in each case based on concrete facts. A final judgment remains to be seen after the referral back to the Regional Labor Court.
In light of the ongoing judicial review and the multifaceted requirements for capable associations, complex questions regularly arise that require careful legal examination. Should you require more in-depth information on the legal implications surrounding the capacity of employers’ associations to negotiate collective agreements, the Rechtsanwälte of MTR Legal are available as your contact persons.
