Representativeness of the European social partner organisations: Steel industry – Germany
The aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the steel industry in Germany. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.
1. Sectoral properties
With regard to overall employment, the steel industry plays a minor part in the German economy. Depending on the source, the share of the steel sector accounts for between 0.4% and 0.6% of overall employment. Most of the workers are men. In terms of worker representation, the steel industry is the domain of the German Metal Workers’ Union (Industriegewerkschaft Metall, IG Metall). The bargaining party on the employer side is represented by the Steel Employers’ Association (Arbeitgeberverband Stahl, AGV Stahl). Collective bargaining is centralised in three bargaining regions which cover almost all of the German steel industry.
| Sectoral properties | 1999 | 2005* |
|---|---|---|
| Number of employers | n.a. | 1,673 |
| 2001** | 2006** | |
| Aggregate employment* | 198,000 | 139,000 |
| Male employment* | 168,000 | 122,000 |
| Female employment* | 30,000 | 10,000 |
| Aggregate sectoral employment as % of total employment in economy | 0.5 | 0.4 |
| 1999*** | 2006*** | |
| Aggregate employees | 195,889 | 158,570 |
| Male employees | 172,621 | 140,721 |
| Female employees | 23,268 | 17,849 |
| Aggregate sectoral employees as % of the total number of employees in economy | 0.7 | 0.6 |
Notes: * Figures include companies as well as establishments.
**Data, from the destatis microcensus, refer to average employment in the year concerned.
***Data issued by the Federal Employment Agency (Bundesagentur für Arbeit, BA) and only refer to employees liable for social security contributions. Data presented refer to the reporting date of 30 June 1999 and 2006, respectively.
There is obviously a contradiction in the data, as total employment according to the microcensus is lower than the total figure of employees in employment. This contradiction is due to the different data sources. n.a. = no data available.
Sources: Federal Statistical Office (Statistisches Bundesamt, destatis,) Unternehmensregister [Company register] and Mikrozensus [Microcensus]; Federal Employment Agency (Bundesagentur für Arbeit, BA)
2. The sector’s trade unions and employer associations
This section includes the following trade unions and employer organisations:
1. trade unions which are party to sector-related collective bargaining;
2. trade unions which are a member of the sector-related European federation, the European Metalworkers’ Federation (EMF);
3. employer organisations which are a party to sector-related collective bargaining;
4. employer organisations or business associations which are a member of the sector-related European business federation, the European Confederation of Iron and Steel Industries (Eurofer).
2a Data on the trade unions
The trade union active in the steel industry is the German Metalworkers’ Union (Industriegewerkschaft Metall, IG Metall).
| German Metalworkers’ Union (Industriegewerkschaft Metall, IG Metall) | |
|---|---|
| 2a.1 Type of membership (voluntary or compulsory) | Voluntary |
| 2a.2 Formal demarcation of membership domain | No formal demarcation of the membership domain exists; IG Metall represents all employees. |
| 2a.3 Number of members in the union | 2,306,283 trade union members as of 2007. |
| 2a.4 Number of union members in the sector | 80,120 trade union members in the steel industry in July 2008. However, it must be noted that this number refers rather to the bargaining unit which does not exactly match the sector as defined by the general industrial classification of economic activities within the European Communities (Nomenclature générale des activités économiques dans les Communautés européennes, NACE). |
| 2a.5 Female union members as a % of total union membership | n.a. |
| 2a.6 Density with regard to the union domain (see 2a.2) | n.a. IG Metall estimates its density at about 89% in July 2008; however, this again refers rather to the core bargaining unit called ‘steel industry’ (Stahlindustrie) and does not match the sectoral definition according to the NACE classification. |
| 2a.7 Density of the union with regard to the sector | n.a. |
| 2a.8 Density of the union with regard to the sectoral domain | n.a. |
| 2a.9 Does the union conclude collective agreements? | Yes |
| 2a.10 Interest affiliation | At national level, the organisation is affiliated to the Confederation of German Trade Unions (Deutscher Gewerkschaftsbund, DGB) At European level, IG Metall is a member of EMF and, at international level, it is affiliated to the International Metalworkers’ Federation (IMF). |
Note: n.a. = no data available.
2b Data on the employer associations
The following three employer organisations are present in the steel industry:
- the Steel Employers’ Association (Arbeitgeberverband Stahl, AGV Stahl);
- the German Steel Federation (Wirtschaftsvereinigung Stahl, WV Stahl);
- the Special Steel Association (Edelstahl-Vereinigung).
2b.1 Type of membership (voluntary vs. compulsory)
The membership is voluntary.
2b.2 Formal demarcation of membership domain (e.g. SMEs, small-scale crafts/industry, metalworking enterprises, etc.)
The membership domain refers to companies in the steel industry which does not exactly match the sector’s definition as given by the NACE classification.
2b.3 Number of member companies (i.e. the total number of members of the association as a whole)
AGV Stahl has 74 members, including seven guest members.
WV Stahl counts 100 member companies and Edelstahl-Vereinigung 40 member companies.
2b.4 Number of member companies in the sector
See 2b.3.
2b.5 Number of employees working in member companies (i.e. the total number of the association as a whole)
The total number of employees working in the member companies is as follows:
- AGV Stahl – about 83,000 employees;
- WV Stahl – about 92,000 employees;
- Edelstahl-Vereinigung – about 25,000 employees.
2b.6 Number of employees working in member companies in the sector
See 2b.5.
2b.7 Domain density in terms of companies: total number of member companies of the association in relation to the number of potential member companies as demarcated by the association’s domain (see 2b.2)
AGV Stahl reports a density of about 90% and WV Stahl of 99%. For Edelstahl-Vereinigung, no data on density are available.
2b.8 Sectoral density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies in the sector, as demarcated by the NACE definition
n.a.
2b.9 Sectoral domain density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies which operate in that part of the sector as covered by the association’s domain
n.a.
2b.10 Domain density in terms of employees represented: total number of employees working in the association’s member companies in relation to the number of employees working in potential member companies, as demarcated by the association’s domain (see 2b.2)
The domain density in terms of workers represented is as follows:
- AGV Stahl – 90%;
- WV Stahl – 99%;
- Edelstahl-Vereinigung – n.a.
2b.11 Sectoral density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition
n.a.
2b.12 Sectoral domain density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees working in companies which operate in that part of the sector as covered by the association’s domain
n.a.
2b.13 Does the employer association conclude collective agreements?
AGV Stahl concludes collective agreements on behalf of its members, excluding guest members. WV Stahl and Edelstahl-Vereinigung do not conclude any collective agreements.
2b.14 For each association, list their affiliation to higher-level national, European and international interest associations (including the cross-sectoral associations).
AGV Stahl is a member of the German Confederation of Employers’ Associations (Bundesvereinigung der Deutschen Arbeitgeberverbände, BDA), but not a member of an international association. WV Stahl is a member of the Federation of German Industries (Bundesverband der Deutschen Industrie, BDI). WV Stahl and Edelstahl-Vereinigung are also members of Eurofer.
3. Inter-associational relationships
3.1. Trade unions whose domains overlap
There are none.
3.2. Do rivalries and competition exist among the trade unions, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?
No.
3.3. If yes, are certain trade unions excluded from these rights?
Not relevant.
3.4. Same question for employer associations as 3.1.
The domains of all three employer organisations overlap.
3.5. Same question for employer associations as 3.2.
As only AGV Stahl concludes collective agreements, no rivalries exist between the three employer organisations.
3.6. Same question for employer associations as 3.3.
No.
3.7. Are there large companies or employer associations which refuse to recognise the trade unions and refuse to enter collective bargaining?
No.
4. The system of collective bargaining
4.1. Sector’s rate of collective bargaining coverage
Bargaining coverage is 100% in the steel industry.
4.2. Relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered
Only sectoral collective bargaining exists in the steel industry.
4.2.1. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer associations?
No.
4.2.2. If there is a practice of extending collective agreements, is this practice pervasive or rather limited and exceptional?
Not relevant.
4.3. Sector-related multi-employer wage agreements* valid in 2006 (or most recent data)
* Only wage agreements which are (re)negotiated on a reiterated basis.
| Bargaining parties | Scope of sector-related multi-employer wage agreements | ||
|---|---|---|---|
| Sectoral | Type of workers | Territorial | |
| IG Metall and AGV Stahl | Three bargaining regions exist (see below 4.4.) | All workers | Regional |
4.4. Sector’s four most important collective agreements (single-employer or multi-employer agreements) valid in 2006
There are only three bargaining regions in the steel industry. The largest one is called ‘West’ and covers the western German states of Bremen, Lower Saxony and North Rhine-Westphalia where the majority of employment in the steel industry is concentrated, another covers the state of Saarland and a third region covers all of the states in eastern Germany. Steel companies in western German states other than those mentioned above are covered by the collective agreements of the metalworking industry.
| Bargaining parties | Scope of agreements | ||
|---|---|---|---|
| Sectoral | Type of workers | Territorial | |
| IG Metall and AGV Stahl | West | All workers | Regional |
| IG Metall and AGV Stahl | Saarland | All workers | Regional |
| IG Metall and AGV Stahl | Eastern Germany | All workers | Regional |
5. Formulation and implementation of sector-specific public policies
5.1. Are the sector’s employer associations and trade unions usually consulted by the authorities in sector-specific matters?
Yes, IG Metall and AGV Stahl are usually consulted in sector-specific matters.
5.2. Do tripartite bodies dealing with sector-specific issues exist?
In Germany, no tripartite bodies exist that deal with sector-specific issues in the steel industry.
6. Statutory regulations of representativeness
6.1. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to conclude collective agreements?
No statutory regulations exist defining representativeness criteria for trade unions to conclude collective agreements.
6.2. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies?
No.
6.3. Are elections for a certain representational body (e.g. works councils) established as criteria for trade union representativeness?
No.
6.4. Same question for employer associations as 6.1.
No statutory regulations exist defining representativeness criteria for employer organisations, and there is no statutory requirement for an organisation.
6.5. Same question for employer associations as 6.2.
No criteria are defined by law.
6.6. Are elections for a certain representational body established as criteria for the representativeness of employer associations?
No.
7. Commentary
Collective bargaining in the steel industry is almost exclusively sectoral with IG Metall and AGV Stahl being the relevant bargaining parties. As there are no competing trade unions or employer organisations, no jurisdictional or recognition problems exist.
Heiner Dribbusch, Institute of Economic and Social Research (WSI) and Sandra Vogel, Cologne Institute for Economic Research (IW Köln)