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    Collective Bargaining System in Germany - Thomas Keysers PDF

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    Yandex Prithu
    Collective bargaining agreements (CBA) in Germany set wages, working hours, and other conditions for about 60% of employees. CBA are negotiated at various levels - sector, region, and company - creating a decentralized centralized system. CBA last an average of 2 years for wage agreements and several years for framework agreements. While CBA coverage has declined in recent decades, they remain an important part of the German industrial relations system.

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    Collective Bargaining System in Germany - Thomas Keysers PDF

    Uploaded by

    Yandex Prithu
    76 views15 pages
    Collective bargaining agreements (CBA) in Germany set wages, working hours, and other conditions for about 60% of employees. CBA are negotiated at various levels - sector, region, and company - creating a decentralized centralized system. CBA last an average of 2 years for wage agreements and several years for framework agreements. While CBA coverage has declined in recent decades, they remain an important part of the German industrial relations system.

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    Collective bargaining agreements (CBA) in Germany set wages, working hours, and other conditions for about 60% of employees. CBA are negotiated at various levels - sector, region, and company - creating a decentralized centralized system. CBA last an average of 2 years for wage agreements and several years for framework agreements. While CBA coverage has declined in recent decades, they remain an important part of the German industrial relations system.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    76 views15 pages

    Collective Bargaining System in Germany - Thomas Keysers PDF

    Uploaded by

    Yandex Prithu
    Collective bargaining agreements (CBA) in Germany set wages, working hours, and other conditions for about 60% of employees. CBA are negotiated at various levels - sector, region, and company - creating a decentralized centralized system. CBA last an average of 2 years for wage agreements and several years for framework agreements. While CBA coverage has declined in recent decades, they remain an important part of the German industrial relations system.

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    of 15

    Collective bargaining agreements in

    Germany
    „to dissolve competitions in order to compete“
    K. Marx
    What are collective bargaining agreements
    (CBA) about?

    Who? What effects? How long do


    • single employer CBA substitutes they last?
    or employers all agreements CBA can be
    associations between the terminate or
    .
    70,000 CBA employer and expire, but:
    .
    members of
    • Unions (8.1 m “after effects”
    unions
    members)
    Types of bargaining agreements

     Framework CBA: Duration of several years;


    salary scales, work-time, paid leave etc.
     Wage setting agreements: they last on average
    for 24 month; wage level adjustments
     Special CBA tackle specific problems like short
    time work or pension schemes
    To centralize or to decentralize?
    That is the question

     CBA in Industries: historic reason: 200 different


    industries with several unions and employers
    associations (29,951 CBA)
     CBA in Regions: grown CBA-areas e.g. 11 for the
    metal industries
     CBA on companies level: Growing number of
    companies-CBA; but content of these CBA
    correspond often to Sectoral-CBA (40,265)
    And the answer is?

     Germany has a centralized decentralized


    bargaining system!
    More centralized than it looks b/c:
    • Industries and regions as “Bargaining leader”
    • Work councils are not allowed to negotiate CBA
    Less centralized than it seems b/c:
    • Many CBA contain provisions which allow work
    councils to deviate from the CBA
    How important are CBA?
    Let´s talk numbers

    50%
    21% sectoral CBA
    no CBA
    8%
    Company
    21% agreement
    CBA as reference

    CBA-Coverage 2014 (employees


    working for employers with CBA)
    More numbers

    29%
    40% Sectoral
    no CBA CBA

    2%
    29% Company
    CBA as agreement
    reference

    CBA-Coverage 2014 (Number of companies with


    CBA)
    Development of CBA
    CBA-Coverage in Germany
    80

    75
    76
    70 73
    70 71 70 70
    65 68 67
    65 65
    60 63 63 63 63
    61 60 60 60
    55
    57 56
    55 55 54 54 54
    50 53 53 52 51 50 49
    45 48 47 47
    40

    35

    30
    1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

    East West
    Milestones of CBA-Development

    TVG = Law on Reunification Crisis First statutory


    CBA of CBA minimum wage
    1949 1990s 2015

    End of WW II Where do we go?

    1970s 2009
    All time high on CBA Great Recession
    Coverage (70%) revival of CBA
    Germany has one of the biggest
    low-paid sector in Europe
    CBA-Crisis and wage restraint in
    Germany
    What do the numbers teach us?

    CBA-Decline

    “white spots” wage fast growing


    in Service restraint low-paid
    Industries from Unions sector
    The Magic Circle ?
    Right to be
    “left alone”

    Failure to
    statutory minimum
    extend CBA to
    wage for all workers
    all employers

    CBA
    role of the
    state
    „posted workers act“ CBA can be
    minimum standards can extended by
    be extended ordinance

    CBA do not apply to


    foreign employers

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