Representativeness of the European social partner organisations: Tanning and leather sector – 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 tanning and leather sector 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
According to the German Leather Federation (Verband der Deutschen Lederindustrie, VDL), the German tanning and leather sector was the third largest in Europe in 2003. Upholstery leathers made up for 70% of the leather sector, with shoes, luggage and apparel accounting for up to 30% of the sector. This segment strongly depends on the automobile industry. The number of establishments and employees decreased from 1999 to 2007 due to relocation and rising imports. According to trade union data, total revenue in the sector increased in 2007.
| 1999 | 2007 | |
|---|---|---|
| Number of employers | 113 | 74 |
| Aggregate employment | n.a. | n.a. |
| Male employment | n.a. | n.a. |
| Female employment | n.a. | n.a. |
| Aggregate employees* | 4,134 | 2,870 |
| Male employees* | 2,941 | 1,975 |
| Female employees* | 1,193 | 895 |
| Aggregate sectoral employment as % of total employment in economy | n.a. | n.a. |
| Aggregate sectoral employees as % of total number of employees in economy | n.a. | n.a. |
Notes: * Federal Employment Agency ( Bundesagentur für Arbeit, BA) data. Data only refer to employees liable for social security contributions. The data presented refer to the reporting dates: 30 June 1999 and 30 June 2007 (preliminary figures).
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; (In line with the conceptual remarks outlined in the accompanying briefing note, we understand sector-related collective bargaining as any kind of collective bargaining within the sector, i.e. single-employer bargaining as well as multi-employer bargaining. For the definition of single- and multi-employer bargaining, see 4.2)
2. trade unions which are a member of the sector-related European federation, the European Trade Union Federation: Textiles, Clothing and Leather (ETUF:TCL);
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 Confederation of National Associations of Tanners and Dressers of the European Community (COTANCE).
2a Data on the trade unions
The Mining, Chemicals and Energy Industrial Union (Industriegewerkschaft Bergbau, Chemie, Energie, IGBCE) is the main trade union active in Germany’s tanning and leather sector.
2a.1 Type of membership (voluntary vs. compulsory)
Membership of IGBCE is voluntary.
2a.2 Formal demarcation of membership domain (e.g. white-collar workers, private-sector workers, textile employees, etc.)
The union has no formal demarcation lines.
2a.3 Number of union members (i.e. the total number of members of the union as a whole)
IGBCE has 713,253 members.
2a.4 Number of union members in the sector
The number of union members in sector NACE 19.1 is not available. IGBCE has 3,000 members in the leather sector, which includes shoes and luggage.
2a.5 Female union members as a percentage of total union membership
Some 19.2% of IGBCE’s members are women.
2a.6 Domain density: total number of members of the union in relation to the number of potential members as demarcated by the union domain (see 2a.2)
The union’s domain density stands at about 25%.
2a.7 Sectoral density: total number of members of the union in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition
IGBCE’s sectoral density amounts to about 25%.
2a.8 Sectoral domain density: total number of members of the union in the sector in relation to the number of employees who work in that part of the sector as covered by the union domain
See above.
2a.9 Does the union conclude collective agreements?
Yes.
2a.10 For each association, list their affiliation to higher-level national, European and international interest associations (including cross-sectoral associations)
IGBCE is a member of ETUF:TCL.
2b Data on the employer associations
The following two employer organisations are active in Germany’s tanning and leather sector:
- the German Leather Industry Employer Association (Arbeitgeberverband der deutschen Lederindustrie, ADL);
- VDL.
2b.1 Type of membership (voluntary vs. compulsory)
Membership of both ADL and VDL is voluntary.
2b.2 Formal demarcation of membership domain (e.g. SMEs, small-scale crafts/industry, textile enterprises, etc.)
There are no formal demarcation lines.
2b.3 Number of member companies (i.e. the total number of members of the association as a whole)
ADL has 22 member companies overall, while VDL has a total of 60 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)
ADL has 1,206 employees working in member companies, while VDL has 3,000 employees working in member companies.
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)
There is no information available regarding ADL’s domain density. VDL has a domain density of about 90%.
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
There is no information available for ADL in this respect. VDL’s sectoral density amounts to 80%.
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
–
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)
VDL’s domain density is 95%.
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
VDL’s sectoral density stands at about 95%.
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
–
2b.13 Does the employer association conclude collective agreements?
ADL concludes collective agreements.
2b.14 For each association, list their affiliation to higher-level national, European and international interest associations (including the cross-sectoral associations).
ADL is a member of the regional association the Union of Bergisch Trade Associations (Vereinigung Bergischer Unternehmensverbände, VBU).
VDL is a member of the Federation of German Industries (Bundesvereinigung der Deutschen Industrie, BDI), COTANCE and the International Council of Tanners (ICT).
3. Inter-associational relationships
3.1. Please list all trade unions covered by this study whose domains overlap
No overlap occurs.
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?
No.
3.4. Same question for employer associations as 3.1
The domains of ADL and VDL overlap.
3.5. Same question for employer associations as 3.2
Only ADL concludes collective agreements; therefore, no rivalries exist.
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?
Yes, one large company comprising 500 employees employs trade union members and yet refuses to accept the collective bargaining agreement or to enter collective bargaining negotiations.
4. The system of collective bargaining
4.1. Sector’s rate of collective bargaining coverage
The sector’s collective bargaining coverage amount to about 80%.
4.2. Relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered
In western Germany, most employees are covered by multi-employer agreements.
4.2.1. Is there a practice of extending multi-employer agreements to employers that 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 employees | Territorial | |
| IGBCE and ADL | Tanning and manufacturing of leather | White-collar workers | Baden-Wuerttemberg, Bavaria, Rhineland-Palatinate; Northwest Germany |
| IGBCE and ADL | Tanning and manufacturing of leather | All workers | West Germany and Berlin, excluding eastern Berlin |
4.4. Sector’s four most important collective agreements (single-employer or multi-employer agreements) valid in 2006 (or most recent data)
See 4.3 above.
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?
IGBCE is not usually consulted in relation to such matters. VDL is usually consulted by the authorities; however, ADL indicated that it was only infrequently consulted by the authorities.
5.2. Do tripartite bodies dealing with sector-specific issues exist?
No.
| Name of body and scope of activity | Bipartite/tripartite | Origin: agreement/statutory | Trade unions with representatives | Employer organisations with representatives |
|---|---|---|---|---|
| Committee on Home Workers | Tripartite | Statutory | Yes | Yes |
* Note: The Committee on Home Workers does not specifically deal with the tanning industry but the leather goods 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.
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.
6.5. Same question for employer associations as 6.2
No.
6.6. Are elections for a certain representational body established as criteria for the representativeness of employer associations?
No.
Birgit Beese, Institute of Economic and Social Research (WSI), and Sandra Vogel, Cologne Institute for Economic Research (IW Köln)