Germany
Background information on industrial relations in Germany
- 19 Dec 2001
Germany: Conflicting views in run-up to metalworking bargaining round<#PDF_LINK>In December 2001, Germany's IG Metall metalworkers' trade union called for pay increases of between 5% and 7% in the 2002 collective bargaining round, to be used for increases in basic pay and the upgrading of certain groups of employees. The Gesamtmetall employers' association sharply rejected the unions' claims and issued its own demands, which include long-term pay agreements and the introduction of a new profit-sharing system.
- 18 Dec 2001
Germany: Employers debate introduction of profit-sharing schemes<#PDF_LINK>In November 2001, with the new collective bargaining round in the metalworking industry looming, German employers were debating new ways to make pay contingent on companies' performance. At the centre of employers' ideas is a new three-tier wage system, which would combine basic pay with elements of performance-based pay and a profit-sharing scheme. While such profit-sharing schemes are generally welcomed by employers' representatives, some trade unions are divided over this issue.
- 18 Dec 2001
Germany: New laws seek to improve employment prospects of workers with disabilities<#PDF_LINK>In November 2001, the German government completed a series of legal reforms which seek to fight discrimination against people with disabilities in all aspects of life. At the centre of the reform package is a set of measures which will promote and improve the employment of workers with disabilities, and reduce barriers at workplace and in terms of interaction with public authorities. After more than a decade of increasing unemployment among disabled workers, these new laws have already contributed to reversing this trend.
- 07 Dec 2001
Germany: First collective agreement signed for retail call centres<#PDF_LINK>In November 2001, Germany's first ever collective agreement for employees in call centres related to the retail sector was signed in the Hamburg region. The deal sets out a new pay grading system for call centre employees.
- 06 Dec 2001
Germany: Soft drinks industry agreements open 2002 bargaining round<#PDF_LINK>In November 2001, collective agreements were signed in the German soft drinks industry , providing for a 3% pay increase in 2002 and introducing a new collectively agreed pensions scheme. The industry was one of the first to settle in the 2002 collective bargaining round, thus setting a mark for other sectors.
- 05 Dec 2001
Germany: Law adopted on equal opportunities for federal civil service employees<#PDF_LINK>November 2001 saw the adoption of a law on equal opportunities for employees in Germany's federal civil service. The law, which came into force immediately, aims to increase the number of women in higher positions through an effective combination of advancement, anti-discrimination measures and improved provisions for the reconciliation of work and family life.
- 21 Nov 2001
Germany: IG Metall presents first findings of itsdebate on the future<#PDF_LINK>In October 2001, the German metalworkers' trade union IG Metall presented the findings of a major survey of employees' attitudes on the future of work and unions and other related matters, conducted as part of the first phase of the union'sdebate on the future. Together with selected research findings and recommendations from research institutes, the empirical results of the survey have been compiled in a report which will provide the basis for further debates and strategic decisions.
- 20 Nov 2001
Germany: Pilots and LTU airline agree rescue package<#PDF_LINK>In November 2001, the VC pilots' trade union agreed to far-reaching wage concessions in order to save the German charter airline LTU from bankruptcy. Following an earlier settlement between LTU and ver.di, the union representing ground crew and flight attendants, wage concessions were thought to be a pre-condition for any further state subsidies, as part of a joint effort to save the airline. With talks at Lufthansa, the largest German airline, still under way, unions and airlines are seeking to find the best way to bring the airline industry through its current difficulties.
- 14 Nov 2001
Germany: New study on income of top managers<#PDF_LINK>According to a study published in autumn 2001, the overall annual income oftop managersin leading German multinational companies (including basic remuneration, bonus payments and stock options) varied between EUR 11.08 million and EUR 1.14 million in 2000.
- 05 Nov 2001
Germany: Government proposes reform of labour market policy<#PDF_LINK>In late September 2001, the German government presented a draft bill on the reform of labour market policy, which was discussed in parliament in October. Key elements of the reform include: improved assessment of the needs of individuals in order to perform successfully in the labour market; better job placement; immediate access for unemployed people to various employment policy measures, and improved linkage between labour market policy measures and other policy areas. In addition, importance is attached in the reform to the promotion of women's employment and gender mainstreaming. The social partners have given a broad welcome to the proposals, though with a number of criticisms.
- 05 Nov 2001
Germany: Ver.di extends connexx project to attract media employees<#PDF_LINK>In September 2001, the German Unified Service Sector Union (ver.di), announced a plan to extend connexx, its successful flagship project for the media industry, until 2005. To boost the union's image among media sector employees and to improve the organised representation of employees in this industry, ver.di will increase connexx's staff and budget.
- 30 Oct 2001
Germany: Agreements establish pension funds in metalworking and chemicals<#PDF_LINK>In September 2001, shortly after both houses of the German parliament had enacted a comprehensive pension reform law, trade unions and employers in two major industries negotiated sectoral collective agreements on private pensions. While the new law merely requests workers to invest a given share of their income in private pension schemes, the new agreements now provide workers with new options to convert part of their income into pension assets. In contrast to several other private pension schemes, the collectively agreed systems exempt workers from the obligation to pay taxes and social security contributions on their pension investment. While both agreements are similar in that they give workers more choices for pension investment, there are also some striking differences in terms of their specific provisions.
- 26 Oct 2001
Germany: Doorn groupholds fifth annual meeting<#PDF_LINK>In September 2001, theDoorn groupof trade unions from Belgium, Germany, Luxembourg and the Netherlands held its fifth annual meeting. The unions jointly evaluated recent collective agreements and discussed issues and demands for their forthcoming bargaining rounds. In 2002, the unions involved will focus their cooperation on the issue oflifelong learning, as well as pay policy.
- 17 Oct 2001
Germany: Construction workers' union to organise new groups of employees<#PDF_LINK>Weakened by declining membership and increasing unemployment in the building sector, the German construction workers' trade union, IG BAU, decided in October 2001 fundamentally to restructure its organisation, rather than to merge with another union. As part of this restructuring process, IG BAU willdelayerits organisation and put more emphasis on interest representation for groups of workers in fields adjacent to construction (such as cleaning). Through this strategy, the union hopes to improve its prospects of recruiting new members.
- 10 Oct 2001
Germany: New collective agreements signed for cinemas<#PDF_LINK>In August 2001, the ver.di trade union and HDF employers' association concluded new collective agreements for employees working in German cinemas. The new agreements have a long duration of between three and four years and provide for pay increases as well as measures such as working time reductions, revisions of the pay grading system, and increases in paid holidays.
- 25 Sep 2001
Germany: Agreements signed on Volkswagen's '5000 x 5000' project<#PDF_LINK>In August 2001, the German-based car producer Volkswagen (VW) and the IG Metall metalworkers' trade union concluded a set of company agreements for the new VW subsidiary, Auto 5000 GmbH. The new pay and working time provisions are below the level set by the main VW company agreement, but are equivalent to the level of the sectoral collective agreement for metalworking. Furthermore, the agreements include some innovative provisions on continuing training, work organisation and co-determination rights.
- 17 Sep 2001
Germany: Study examines employment situation of women after taking parental leave<#PDF_LINK>In a study published in June 2001, Germany's Institute for Employment Research has analysed the effects of the extension of parental leave entitlement to three years in 1992. The study indicates that the majority of women return to work after parental leave and that these jobs are often adequate and even, in some cases, better than before. Nevertheless, a relatively high proportion of women face unemployment after parental leave. The study also finds that companies are offering improved skills and qualification opportunities to women during parental leave, but that their participation is restricted due to the persistent lack of childcare facilities.
- 28 Aug 2001
Germany: Employees accept pay cuts at Hewlett Packard<#PDF_LINK>In early July 2001, the German subsidiary of the US-based computer and printer group, Hewlett Packard, called on its employees to accept voluntary cuts in pay or holidays to help compensate for a current downturn in profits. While the IG Metall metalworkers' trade union asked workers to reject these demands, about three-quarters of them agreed to the management's initiative.
- 28 Aug 2001
Germany: BDA and DGB issue joint declaration on Alliance for Jobs<#PDF_LINK>In July 2001, the Confederation of German Employers' Associations (BDA) and the German Federation of Trade Unions (DGB) published a joint declaration on the tripartite national Alliance for Jobs. The declaration deals with vocational training and qualification, flexible working time and overtime work, company-related pension schemes, the enlargement of the EU, east Germany and the observance of collectively agreed standards.
- 28 Jul 2001
Germany: Government-employer agreement prevents equal opportunities law<#PDF_LINK>In July 2001, the German government and employers' associations signed an agreement on equal opportunities in the private sector, in which the latter declared their intention to develop and implement their own measures to promote equal opportunities and "family-friendly" employment conditions. The conclusion of the agreement means that a binding law on equal opportunities, which had formed part of the current "red-green" government's coalition pact, has been put on hold. While the federal minister responsible for women's affairs expressed satisfaction with the agreement, it was criticised by the Green Party - the junior coalition partner - trade unions and women's organisations. They argue that business and industry have had enough time to develop measures on equal opportunities but have not done so, thus requiring binding legal regulations and not declarations of intent.
- 28 Jul 2001
Germany: New collective agreements signed in retail<#PDF_LINK>After bargaining in the German retail sector had dragged on for some weeks, a new collective agreement signed in Hamburg on 21 June 2001 brought the dispute to an end. The basic provisions contained in the Hamburg settlement were subsequently accepted in other bargaining regions.
- 28 Jul 2001
Germany: Landmark training agreement concluded in metalworking<#PDF_LINK>After more than three months of intense negotiations, the social partners in the German metalworking industry's Baden Württemberg bargaining region finally signed a new collective agreement on further and continuing training in June 2001. The agreement will entitle employees to determine their training needs in annual consultations with their employer, with the latter paying for the subsequent training. The parties also agreed to set up a new agency which will assist companies and employees to improve the maintenance, adaptation and upgrading of skills. The IG Metall trade union hopes to conclude similar agreements in other bargaining regions.
- 28 Jul 2001
Germany: Works Constitution Act reform adopted<#PDF_LINK>In June 2001, the lower house of the German Bundestag approved a reform of the Works Constitution Act. Almost 30 years after the last major overhaul of the law on works councils, the government now aims to adjust numerous provisions to the changed business environment and in particular seeks to give works councils a say in areas such as training, employment security, protection of the environment and fighting xenophobia and racism at the workplace. Besides several provisions which seek to streamline the procedure for the election of works councils and increase their size, the new Act will also improve the representation of women. While trade unions mainly welcomed the new law, employers' associations highlighted major concerns.
- 28 Jul 2001
Germany: IG Metall and VW fail to agree on terms for creation of 5,000 new jobs<#PDF_LINK>In late June 2001, Volkswagen (VW) and the IG Metall metalworkers' trade union failed to agree on the pay and conditions to apply to workers employed under the company's proposed "5,000 x 5,000" project. In late 1999, the motor manufacturer had presented a plan to create 5,000 new jobs, with the employees concerned receiving fixed monthly pay of DEM 5,000. Under the proposals, new employees would work as long as necessary to reach production targets (up to the statutory maximum working week of 48 hours), over six days a week (excluding Sundays). Although both sides made concessions during bargaining, in June differences concerning working time and pay brought the negotiations to an end for the time being.
- 28 Jul 2001
Germany: Interim report on 2001 collective bargaining round<#PDF_LINK>In July 2001, the WSI research institute presented an interim report on Germany's 2001 collective bargaining round. The study evaluates collective agreements concluded in the first half of 2001, affecting about 17% of all employees covered by an agreement. For the majority of the employees, however, pay increases for 2001 were already determined in 2000 when many agreements were concluded with a term of two years. The average increase in wages and salaries will be around 2.1% in 2001, which is significantly lower than the previous pay increases of 2.4% in 2000 and 3.0% in 1999.
- 28 Jun 2001
Germany: Lufthansa pilots pay dispute draws to close<#PDF_LINK>In June 2001, an agreement reached in an arbitration committee brought to an end a pay dispute between the German air carrier Lufthansa and the VC pilots' trade union. Bargaining had earlier broken down amid a number of warning strikes and two 24-hour stoppages. The conflict was particularly notable because the pilots, for the first time in Germany, used explicit international wage comparisons in support of their demands, while other unions openly criticised the pilots' demands as being excessive.
- 28 Jun 2001
Germany: Pension reform finally passed<#PDF_LINK>In May 2001, the German Federal Council approved the second part of the government's pension reform legislation, which will come into force on 1 January 2002. After months of controversial debate, the upper house of parliament has now cleared the way for the introduction of a private branch of the pensions system. In expectation of substantial sums of money being invested, not only banks and insurance companies but also the social partners are now seeking to provide new opportunities for private pension investment
- 28 Jun 2001
Germany: New agreements signed in private banking and insurance<#PDF_LINK>In May 2001, the ver.di trade union and the employers' association for private banking signed a new collective agreement for about 470,000 employees. The deal provides for a pay increase of 2.8%, long-term working time accounts and exceptional rules on working time during the changeover from the Deutschmark to the euro. Similar pay provisions were subsequently agreed for the insurance sector.
- 28 Jun 2001
Germany: DGB to assess national Alliance for Jobs<#PDF_LINK>In April 2001, Germany's DGB trade union confederation announced that it was to conduct an assessment of the achievements of the tripartite national Alliance for Jobs, launched in late 1998. DGB will evaluate the Alliance in terms of its results in areas such as cutting unemployment, increasing employment, reducing overtime working and promoting training and part-time work.
- 28 Jun 2001
Germany: Employees at Pixelpark multimedia agency elect works council<#PDF_LINK>In May 2001, employees at the Berlin office of the German multimedia agency, Pixelpark, elected a works council. As works councils are not widespread in the information and communication technology sector and it is generally difficult for trade unions to gain influence in this industry, this event attracted attention. In the run-up to the election, Pixelpark management announced that offices will be closed and employees made redundant in the course of company restructuring. The newly elected works council is now trying to counter this plan by developing alternative proposals.
- 28 May 2001
Germany: Federation of Gay Managers awards diversity management prize to Ford<#PDF_LINK>In April 2001, Germany's Federation of Gay Managers awarded its "Max Spohr Prize" to Ford, in recognition of the auto company's good "diversity management" policies and practices. The prize, awarded for the first time in 2001, recognises companies which protect and support minority groups, such as gay and lesbian employees.
- 28 May 2001
Germany: Ver.di and Randstad agreed on pay increases<#PDF_LINK>In April 2001, Germany's Unified Service Sector Union (ver.di) and the Randstad temporary employment agency agreed on pay increases for about 21,000 Randstad employees working in various companies. The parties hope that the settlement might set an example for the whole temporary agency work sector.
- 28 May 2001
Germany: Employers and unions debate new rules for immigration<#PDF_LINK>In April 2001, the German Trade Union Federation (DGB) presented a new programme arguing for the introduction of a federal immigration committee and quotas for certain types of non-EU immigrant workers. This programme comes at a time when the federal government as well as the Confederation of German Industries (BDI) have highlighted the need for future large-scale immigration and are seeking to find ways to attract high-skilled foreign labour to Germany. The debate focuses not just on rules to govern immigration but also seeks to offer foreign workers support for their integration into German society.
- 28 May 2001
Germany: Government presents first report on poverty and wealth<#PDF_LINK>In April 2001, the government presented the first report on poverty and wealth in Germany. The report's analysis shows that, in nearly all areas, the problem of social exclusion has increased while at the same time justice in distribution has decreased. Families with children and single parents are particularly affected by these developments. The report, along with Germany's first National Action Plan on social inclusion (in response to an EU initiative), states that the government wants to fight poverty primarily through promoting labour market integration and greater qualifications. Trade unions, however, are seeking more concrete redistribution policies.
- 28 Apr 2001
Germany: New agreements signed for Lufthansa cabin and ground staff<#PDF_LINK>In March 2001, collective agreements were signed by management and the new Unified Service Sector Union (Ver.di) for 55,000 cabin and ground staff at the German airline Lufthansa. The settlement followed a warning strike by 10,000 employees. Negotiations continue between Lufthansa and the Cockpit pilots' union, which is bargaining independently of Ver.di.
- 28 Apr 2001
Germany: First sectoral agreement on private pensions signed in construction<#PDF_LINK>In anticipation of a pending reform of the German pensions system, the social partners in the construction industry have concluded a new collective agreement on private pensions, which was due to come into force in April 2001. The new law will require workers to contribute to a private pensions scheme, and the construction industry deal thus provides for workers and employers jointly to invest a monthly sum of DEM 78 per head. However, the agreement cannot take effect until the new pensions legislation is adopted.
- 28 Apr 2001
Germany: IG Metall seeks collective agreement on further training<#PDF_LINK>In March 2001, negotiations began over a new general agreement on pay grades for the metalworking industry in Germany's Baden Württemberg region. With pay increases themselves not due to be renegotiated until spring 2002, the IG Metall metalworkers' trade union is focusing on more qualitative issues, and especially an extension of company-level further training. It seeks, as part of a comprehensive programme for the improvement of working conditions, to make training available to the entire workforce (ending the widespread exclusion of low-skilled and older workers) and to include binding rules on training entitlements in the collective agreement. If IG Metall is successful in Baden Württemberg, it will extend its new strategy throughout the country.
- 28 Apr 2001
Germany: IG Metall launches debate on the future<#PDF_LINK>Germany's IG Metall metalworkers' trade union has launched a "debate on the future", in order to develop new perspectives and strategies for the union, which faces dwindling membership. The debate, which is divided into three phases, will last for two years from May 2001. Over this period, IG Metall will organise opinion polls, discussion groups and conferences dealing with the future of work, trade unions, society, the economy and politics. The outcomes will be published in a manifesto and translated into practice at the IG Metall congress in 2003.
- 28 Apr 2001
Germany: Unified Service Sector Union (ver.di) created<#PDF_LINK>After a merger process between five trade unions lasting more than three years, Germany's new Unified Service Sector Union (ver.di) was created at a founding congress in Berlin on 19-21 March 2001. With nearly 3 million members, ver.di is thought to be the largest union in the democratic world.
- 28 Mar 2001
Germany: Membership of DGB-affiliated unions falls again<#PDF_LINK>According to the latest figures from the German Federation of Trade Unions (DGB), membership of its affiliated trade unions dropped by 264,000 in 2000 to stand at 7.77 million.
- 28 Mar 2001
Germany: WSI survey examines decentralisation of bargaining in 1999/2000<#PDF_LINK>According to the findings of the WSI Works Council Survey 1999/2000, published in February 2001, about 22% of German establishments surveyed have taken advantage of the opportunity to diverge from collectively agreed provisions by using "opening clauses". In addition, about 15% of the establishments have contravened agreements in force to a greater or lesser extent. Nearly three-quarters of the works councillors surveyed considered that the overall trend towards a decentralisation of collective bargaining has either negative or ambiguous effects.
- 28 Mar 2001
Germany: Alliance for Jobs agrees joint statement on training<#PDF_LINK>In March 2001, leading representatives of the German federal government, trade unions and employers' associations met officially for their seventh round of top-level talks within the national Alliance for Jobs, Training and Competitiveness. While participants agreed on a joint programme to improve the employment perspectives of older workers, as well as on an initiative for company-level training, they are still debating the impact of the Alliance on collective bargaining.
- 28 Mar 2001
Germany: Government adopts draft bill on reform of Works Constitution Act<#PDF_LINK>In February 2001, the German cabinet adopted a draft bill on reform of the Works Constitution Act, which governs the system of works councils. After some disagreements between the Ministry of Labour and the Ministry of Economics, the new bill represents a compromise between the positions of the two Ministries.
- 28 Feb 2001
Germany: Theatre strike silences Cats<#PDF_LINK>In January 2001, the IG Medien German media workers' union called a strike of technical staff at the "Cats" musical in Hamburg, in a dispute with the Stella music corporation over job losses and the transfer of "Cats" to Stuttgart. After a number of performances had been cancelled, a settlement was reached with the conclusion of a new framework agreement and social plan to accompany the redundancies.
- 28 Feb 2001
Germany: Collectively agreed pay up 2.4% in 2000<#PDF_LINK>According to figures from the WSI Collective Agreement Archive, issued in early 2001, collectively agreed pay increased on average by about 2.4% in Germany in 2000. Sectoral pay increases ranged between 3.0% and 1.6%.
- 28 Feb 2001
Germany: Forced labour compensation scheme faces difficulties<#PDF_LINK>In July 2000, the German parliament passed legislation to provide compensation for 1 million surviving victims of slave and forced labour during the Nazi period, through a Remembrance, Responsibility and Future Foundation. The law followed lengthy negotiations between the governments of the USA, Germany and several eastern European countries, along with representatives of German business and of slave/forced labourers. In early 2001, German companies are facing severe problems in trying to raise their share of the fund's total assets of DEM 10 billion. German business is still DEM 1.4 billion short of the DEM 5 billion promised in the negotiations, and politicians and trade union representatives are beginning to lose patience with those companies - notably medium-sized firms - which are unwilling to pay. Meanwhile, the German parliament will not release the funds before German companies have been assured protection from further litigation, especially in US courts.
- 28 Feb 2001
Germany: Survey examines industrial relations at establishment level in 1999/2000<#PDF_LINK>In February 2001, Germany's WSI research institute presented the first results of its recent Works Council Survey 1999/2000 which – among other matters - contains current information on the relations between works councils and employees, employers and trade unions. The data indicate that works councils receive firm support from both employers and employees, but also identify deficits in industrial relations at establishment level regarding direct employee involvement, employers' acceptance of works councils' rights and trade union support for works councils.
- 28 Feb 2001
Germany: Reform of Works Constitution Act proposed<#PDF_LINK>In December 2000, the German Federal Ministry of Labour presented the first draft of a proposed reform of the Works Constitution Act (BetrVG). The BetrVG, which governs the operation of works councils, has remained almost unchanged for nearly three decades, and the government now aims to bring it into line with modern company and work organisation. The draft foresees an improvement in works councils' operating conditions as well as an extension of their responsibility into new areas such as employment security, qualifications, environmental protection and fighting xenophobia at the workplace. While the trade unions mainly welcomed the government's initiative, employers' associations sharply rejected the draft and announced strong resistance.
- 28 Jan 2001
Germany: VW introduces new pension funds<#PDF_LINK>From spring 2001, Volkswagen AG in Germany plans to introduce a new occupational pension scheme which provides employees with supplementary retirement benefits. As a result of negotiations between the company's works council and management, the motor manufacturer plans to conclude a works agreement to transfer the administration of pensions to the newly founded "VW-Pension Trust eV". When this transfer takes effect, VW will be one of the first German companies to introduce a fund-based supplementary pension system. After trade unions had initially resisted plans of this type, the government announced plans to provide tax incentives for the introduction of privately-run pension funds. As part of an ongoing dispute about the future of the German statutory pension scheme, "US-style" pension funds are now adding a new dimension to the debate.
- 28 Jan 2001
Germany: Trade unions criticise employers over increased overtime working<#PDF_LINK>In 2000, the number of paid overtime hours worked in Germany increased to a total of 1.85 billion, according to figures issued at the end of the year. While trade unions demand a significant reduction of overtime in order to create new jobs, the employers see overtime as a necessary tool of flexible work organisation, which could only be reduced by a further flexibilisation of working time arrangements.
- 28 Jan 2001
Germany: Fewer work-related injuries and occupational diseases in 1999<#PDF_LINK>According to a report issued by the German Ministry of Labour in late 2000, the number of work-related injuries declined in 1999, as did the number of occupational diseases. On the negative side, the survey also reports a slight increase in the number of fatal accidents.
- 28 Jan 2001
Germany: Parliament approves new pension scheme<#PDF_LINK>In late January 2001, the German parliament approved the new pension scheme proposed by the red-green coalition government as part of its pensions reform. Unlike other parts of the reform, this new scheme did not require support from opposition political parties. While the core of the planned reform - a reduction in state pension provision and encouragement for employees to participate in privately funded pension schemes in order to offset the resulting loss in income - has now been translated into practice, the concrete shape of the overall reform is still unclear.