I believe a core tactic of a conservative government is to lower the revenue base of the government so less services are effective and efficient. This leads to the ability to privatize those services. Remember conservatives fundamentally lack policies that would benefit the majority of the countries they lead, they are grifters. Instead of fixing problems or raising revenue through taxing the rich (their friends and donors) they cut services to fund tax cuts. When that becomes too unpopular they focus on deregulation until they can again cut services and lower taxes on the rich again.
Please, help educate everyone on the actions of this conservative government and the last - whatever - three decades of conservative government. They hurt people so they can give more money to the rich, don’t ever vote a centralist or right wing party ever again. Only political parties that work for workers, that’s who deserve your vote and support.
I can’t speak to that specific situation but I believe power should be held the shortest distance from the people it effects - balanced only by having more power for more people. I imagine health insurance owned and controlled by unions is less powerful than owned and controlled by the government but the distance is shorter. So ideally it would be held by a government to maximize the negotiating power essentially, but if the government is run by incompetent or immoral people (like I’d assert the CDU is) I could see union control being better.