"Demanding bureaucracy reduction is not enough, we must show solutions!"

The coronavirus crisis, sustainability, healthcare-related trades, and expectations for a new federal government were the topics of the second "Forum on Crafts Law." Practitioners and academics shared experiences and took a look at upcoming legislation.

This article is part of the special feature on bureaucratic madness in the skilled trades.

"It's great to be back!" exclaimed Prof. Dr. Martin Burgi , Advisory Director at the Ludwig Fröhler Institute, delighted with the live event and approximately 70 guests at the second "Forum on Crafts Law" on October 15, 2021, at the Munich Chamber of Skilled Crafts. Its Managing Director, Dr. Frank Hüpers , welcomed the attendees in remembrance of Ministerial Councilor Joachim Garrecht, Head of the Crafts Division at the Federal Ministry for Economic Affairs and Energy, who had passed away unexpectedly in the summer. He said they had lost a true friend of the skilled trades.

Pandemic as a challenge and opportunity for the skilled trades

Professor Dr. Gunther Friedl , head of the Ludwig Fröhler Institute, described the business challenges facing the skilled trades after the pandemic in the first presentation of the day. "Corona was only a short-term accelerator of innovation; the effect was not sustainable," he lamented. Liquidity is currently weakened in many businesses, and material shortages are severe, he emphasized. Supply chains have been disrupted, while at the same time demand has increased. The shortage of skilled workers has returned to pre-crisis levels. Friedl also pointed out a significant decline in vocational training. "All those who are not trained now will be missing as skilled workers later!" the scientist warned.

As a solution , he suggested that craft businesses should develop greater resilience . Regarding skilled workers, he emphasized the need to retain and develop existing employees in addition to active recruitment . He cited a bakery offering attractive working hours as an example. To stimulate customer demand, craft businesses should also consider product innovations . He cited companies that found success during the COVID-19 pandemic with disinfectant dispensers, 3D-printed chocolate, or online courses on praline making. However, he stressed that craft businesses must also focus more on securing liquidity and utilize government assistance. Furthermore, the crisis has accelerated digitalization in many businesses, for example, through remote hearing aid maintenance. His conclusion: "The craft sector is affected by the crisis in various ways, but benefits from its diversity."

Sustainability as a bureaucratic burden

Afterwards, Prof. Burgi spoke about Sustainability as a bureaucratic burden for the craft industry"Almost everyone today is demanding sustainability and, at the same time, reducing bureaucracy," he said. The former, however, also brings with it the danger of more bureaucracy This was shown by the Supply Chain Act, the EU Green Deal or the Federal Constitutional Court ruling on climate protection"The issue has moved from the feature pages to economic policy," Burgi stated. Of course, craft businesses have long been required to observe environmental protection and ecological obligations. But recently, fundamental new structures Although the new laws primarily affect manufacturers, they will in future be responsible for take on to the end users pass on. It is also expected that subsidies and public contracts linked to sustainability This is in the Green Deal and the "Fits 55"programme of the EU. As an example, he cited the "Green Financing" of the EU, which binds financial market players to ecological standards. These companies would then impose these conditions on their business partners, including the skilled trades, Burgi predicted. In Germany, this would be further boosted by the Climate protection decision of the Federal Constitutional CourtIn it, the judges demand a Transformation of all CO2-relevant structures. "Even that Supply Chain Act already contains obligations that large companies will pass on to their suppliers," the lawyer emphasized.

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The skilled trades are not only suffering from these new regulations, they also benefit from them, as they are also key drivers of sustainability . Sustainability is impossible without skilled trades services, such as energy-efficient building renovations or repairs . And therein lie opportunities , including for political self-promotion and the legitimacy to claim government subsidies . "Bureaucracy is not inherently bad," said Burgi, "and it is not entirely dispensable. Nevertheless, every new regulation is a challenge for businesses." The legal expert distinguished between obligations to act and obligations to provide evidence , such as those found in the GDPR or the German Construction Contract Procedures (VOB) . While an individual obligation may be harmless on its own, collectively they represent an enormous burden for businesses.

What can be done to reduce bureaucracy

Burgi sees the reduction of bureaucratic burdens as a constitutional mandate and outlined the options available to politicians and administrators in this regard. He suggested making greater use of existing options and tools such as prequalification – a preliminary assessment of the company that remains valid for a certain period, similar to those used in public procurement law – and self-declarations.

In the ensuing discussion, Dr. Markus Peifer , Head of Organization and Law at the German Confederation of Skilled Crafts (ZDH ), emphasized : "In politics, the problem isn't one of understanding, but of implementation . The necessary political will is lacking!" Law and practice often diverge because many businesses can no longer fulfill their obligations due to excessive workloads . Acceptance has waned, and this isn't being recognized by politicians. Burgi agreed with Peifer. It is therefore necessary to systematically identify and communicate the individual bureaucratic burdens to policymakers . Simply demanding a reduction in bureaucracy is not a promising approach. Rather, the skilled crafts organization must also present options for achieving this goal. He referred to the solutions outlined in his presentation.

From left to right: Dr. Frank Hüpers, Managing Director of the Chamber of Crafts for Munich and Upper Bavaria, Prof. Dr. Gunther Friedl, Director of the Ludwig Fröhler Institute, Jessica Kuhn, Managing Director of the Central Association of Orthopaedic Shoe Technology, Prof. Dr. Martin Burgi, Advisory Director of the Ludwig Fröhler Institute, Prof. Dr. Steffen Detterbeck, Philipps University of Marburg. Photo: © LFI

Exceptions to the master craftsman requirement are popular

Klaus Schmitz , Head of the Department for Crafts Law at the German Confederation of Skilled Crafts (ZDH), then gave a presentation via online link about the updates to the Leipzig Resolutions on the Crafts Code (HwO). These resolutions help with the interpretation of the regulations for journeymen with extended experience and exemptions from the master craftsman requirement . Between 2000 and 2020, around 38.000 journeymen with extended experience were registered in the Register of Skilled Crafts and over 50.000 exemptions were granted, he reported. Using the example of case law concerning supermarket meat counters , he illustrated how important the regulations are for the economy. Currently, master craftsmen and journeymen are difficult to find, and supermarket chains are relying on the granting of exemptions, Schmitz explained. He concluded that the Leipzig Resolutions have led to a nationwide standardization of licensing practices.

Doctors in dispute with health care workers

"Those evil doctors want to take business away from healthcare professionals !" Professor Dr. Steffen Detterbeck from Philipps University of Marburg provoked with a twinkle in his eye at the beginning of his lecture on healthcare professionals and doctors in the competition between economic and social law. This is due, among other things, to the lack of legal regulations defining the boundaries of these professions. Therefore, one has to rely on training and examination regulations , he explained. However, this also leads to overlaps. Detterbeck presented problematic cases in the trades of opticians, hearing aid acousticians, and dental technicians. For example, the controversial "shortened supply route" for hearing aids from ENT doctors is not possible without a certified hearing aid acoustician.

Complex framework conditions for medical aid contracts

The presentation by Jessica Kuhn , Managing Director of the Central Association of Orthopedic Shoe Technology (ZVOS) , also focused on healthcare trades , specifically on the law governing contracts for assistive devices . The main focus was on Section 127 of the German Social Code, Book V. This section defines what constitutes an assistive device, including visual or hearing aids and custom-made orthopedic shoes, but not dental prostheses. Kuhn explained that healthcare trades require prequalification to conclude a supply contract with a health insurance company ; a framework agreement regulates, among other things, the prices. "You are not allowed to dispense an assistive device without a contract," she emphasized. These trades are subject to both trade law and healthcare law regulations.

Strengthen the position of healthcare professionals vis-à-vis health insurance companies

The sheer number of contracts and the different procedures place a considerable burden on professional organizations, reported the association's president. Her central association alone has 14 framework agreements with various health insurance funds, some of which run to several hundred pages. Negotiating changes to these contracts later is virtually impossible . "I miss the level playing field," lamented Kuhn. The legislator's intention to ensure competition through diverse and individualized contracts has been missed here . Kuhn therefore called for a reform of Section 127 of the German Social Code, Book V (SGB V), and the prequalification process, as well as new framework conditions for contracts for assistive devices, in order to strengthen the trades vis-à-vis the health insurance funds . Burgi subsequently pointed out, among other things, that it is constitutionally precarious that the healthcare trades are not represented on the Federal Joint Committee .

ZDH calls for more trust in the economy

Holger Schwannecke, Secretary General of the German Confederation of Skilled Crafts (ZDH), concluded the lecture series with his report from Berlin . "The cards are being completely reshuffled," he commented on the results of the federal election. "Young people have clear expectations of the Greens and the FDP." Since the SPD, Greens, and FDP announced on that very day that they intended to begin coalition talks , he offered a timely commentary on the exploratory talks' results . "All signs point to a traffic light coalition. For us, however, it's not the political color that matters, but the political substance."

The new government must deliver on its modernization promise . The head of the German Confederation of Skilled Crafts (ZDH) addressed the changes planned by the parties. These include, among other things, a reorganization of responsibilities in the digital sector, an immediate climate protection program, a leading market for electromobility, a minimum wage of €12, an excellence initiative for vocational training, and mandatory retirement savings for the self-employed . Schwannecke demanded that the formation of the government not take too long and that there should be no government based on the lowest common denominator. At the same time, he expects a new government to implement better legal regulations , accelerate the reduction of bureaucracy , genuinely expedite planning and approval processes, and increase the flexibility of institutions. "We need a fresh start!" Schwannecke appealed. "And more trust from the legislature in the business community."

The speakers' contributions will be published in the journal "Wirtschaft und Verwaltung," issue 4/2021. The 3rd Crafts Law Forum is planned for June 2023.

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