In July 2002, the Collective Agreement Archive (WSI-Tarifarchiv) of the Institute for Economic and Social Research (Wirtschafts- und Sozialwissenschaftliches Institut, WSI) within the Hans-Böckler Foundation published an interim report on the 2002 collective bargaining round (Tarifpolitischer Halbjahresbericht. Eine Zwischenbilanz der Lohn- und Gehaltsrunde 2002, Reinhard Bispinck/WSI-Tarifarchiv, WSI Informationen zur Tarifpolitik, Düsseldorf, July 2002 [1]).[1] http://www.boeckler.de/pdf/p_ta_hjb_2002.pdf
In July 2002, the WSI research institute presented an interim report on Germany's 2002 collective bargaining round. The study evaluates collective agreements concluded in the first half of 2002, affecting about 38% of all employees covered by an agreement. The average increase in wages and salaries will be around 2.9% in 2002, which is significantly higher than the pay increases of 2.1% in 2001 and 2.4% in 2000.
In July 2002, the Collective Agreement Archive (WSI-Tarifarchiv) of the Institute for Economic and Social Research (Wirtschafts- und Sozialwissenschaftliches Institut, WSI) within the Hans-Böckler Foundation published an interim report on the 2002 collective bargaining round (Tarifpolitischer Halbjahresbericht. Eine Zwischenbilanz der Lohn- und Gehaltsrunde 2002, Reinhard Bispinck/WSI-Tarifarchiv, WSI Informationen zur Tarifpolitik, Düsseldorf, July 2002).
According to the WSI study, the average pay increase will be around 2.9% in 2002 (calculated on an annual basis), which is significantly higher than the 2.1% increase recorded in 2001 (DE0201201F) and the 2.4% increase in 2000, reaching almost the same level as the 3.0% increase in 1999 - see table 1 below. The pay increases vary from sector to sector, between 2.0% in construction and 3.3% in the investment goods industry. The average increase in east German pay levels (2.7%) will be somewhat below the increase in west Germany (3.0%). The reason is mainly the very low pay increase of only 1.4% in east German construction, in comparison with 2.3% in west German construction. Average collectively agreed pay in east Germany will thus amount to around 93.0% of west German pay levels.
| Sector | 2002** | 2001 | 2000 | 1999 |
| Investment goods industry | 3.3% | 1.8% | 2.6% | 3.6% |
| Raw material and production industries | 3.2% | 1.8% | 2.5% | 2.4% |
| Consumption goods industry | 3.1% | 2.4% | 2.5% | 2.6% |
| Public services | 3.0% | 1.8% | 1.9% | 3.2% |
| Banking and insurance | 2,9% | 3.2% | 2.0% | 3.1% |
| Commerce | 2.6% | 2.8% | 3.0% | 3.2% |
| Horticulture, agriculture and forestry | 2.6% | 1.8% | 2.3% | 2.3% |
| Food industry | 2.5% | 2.7% | 2.8% | 2.7% |
| Private services | 2.3% | 2.1% | 2.3% | 2.1% |
| Trade and transport | 2.3% | 1.7% | 2.3% | 3.0% |
| Energy, water and mining | 2.1% | 1.3% | 1.9% | 1.9% |
| Construction | 2.0% | 1.6% | 1.6% | 2.0% |
| All sectors | 2.9% | 2.1% | 2.4% | 3.0% |
* Increases against the previous year; ** figures are calculated on the basis of collective agreements in the first half of 2002 (until 20 June 2002).
Source: WSI Collective Agreement Archive 2002.
Bargaining in the first half of 2002
In the first half of 2002, trade unions affiliated to the German Federation of Trade Unions (Deutscher Gewerkschaftsbund, DGB) concluded new collective agreements for nearly 8 million employees, about 38% of all employees covered by a collective agreement. The first major sectoral agreements of the 2002 bargaining round were concluded in chemicals (DE0205204F), followed by new agreements in metalworking (DE0205206F). Both agreements set a guideline for the negotiations in other sectors. The average agreed rate of pay increases varied in most sectors between 3% and 4% - see table 2 below. Initially, the trade unions made claims for pay increases of between 4% and 6.5% (DE0204201N). In many sectors, the new agreements have a term longer than 12 months, as for example in metalworking (21 months) or in construction (24 months).
Although pay increases were at the core of the 2002 collective bargaining round, there were also some agreements on non-pay issues. The most important was the modernisation of the pay framework agreement in metalworking, after many years of negotiations (DE0205206F). The introduction of a new pay framework agreement (Entgeltrahmen-Tarifvertrag, ERA) will lead to the abolition of the traditional distinction between blue- and white-collar workers in metalworking. Companies will have to introduce the new grading system by the end of 2007. The adjustment costs will be covered from the annual pay increases.
Finally, the 2002 collective bargaining round has seen an unusually high level of industrial action so far. The unions have held full-scale strikes in metalworking (DE0205205F) and construction (DE0206204F) as well as in banking and retail, where no agreements had been reached by July. In other sectors, for example the steel industry or the insurance sector, the negotiations were accompanied by warning strikes and protest demonstrations.
| Date of agreement | Branch (region) | Pay increase | Duration of pay agreement |
| 8 April 2002 | Automobile trade (North Rhine Westphalia) | One 'zero-month' with no pay increase; 2.4% from April 2002; 0.8% from September 2002. | 12 months |
| 18 April 2002 | Chemicals industry (west Germany) (DE0205204F) | Flat-rate payment of EUR 85 for the first month; 3.3% for further 12 months. | 13 months |
| 25 April 2002 | Hotels and restaurants (Bavaria) | One 'zero-month' with no pay increase; 2.75% from May 2002. | 12 months |
| 30 April 2002 | Chemicals industry (east Germany) (DE0205204F) | 3.3% from May 2002; 2.8% from October 2002. | 13 months |
| 15 May 2002 | Metalworking industry (pilot agreement in Baden-Württemberg) (DE0205206F) | Two 'zero-months' with no pay increase; flat-rate payment of EUR 120 for May 2002; 4.0% from June 2002; 3.1% from June 2003. | 21 months |
| 17 May 2002 | Wood processing industry (Westfalen-Lippe) | Flat-rate payment of EUR 20 for May 2002; 3.0% from June 2002. | 12 months |
| 27 May 2002 | Paper processing industry | Flat-rate payment of EUR 30 for April 2002; 3.4% from May 2002. | 12 months |
| 29 May 2002 | Printing industry (DE0206202N) | Flat-rate payment of EUR 43 for April 2002; 3.4% from May 2002. | 12 months |
| 11 June 2002 | Deutsche Post AG | Flat-rate payment of EUR 43 for May 2002; 3.5% from June 2002; 3.2% from June 2003. | 24 months |
| 14 June 2002 | Iron and steel industry (west Germany) (DE0207202N) | Flat-rate payment of EUR 50 for June 2002; 3.6% from July 2002. | 15 months |
| 19 June 2002 | Iron and steel industry (east Germany) (DE0207202N) | Flat-rate payment of EUR 50 for June 2002; 3.6% from July 2002. | 15 months |
| 21 June 2002 | Insurance (DE0207201N) | Flat-rate payment of EUR 100 for June 2002; 3.5% from July 2002. | 16 months |
| 25 June 2002 | Construction (west Germany) (DE0206204F) | Two 'zero-months' with no pay increase; flat-rate payment of EUR 225 for June to August 2002; 3.2% from September 2002; 2.4% from April 2003. | 24 months |
| 25 June 2002 | Construction (east Germany) (DE0206204F) | Five 'zero-months' with no pay increase; 3.2% from September 2002; 2.4% from April 2003. | 24 months |
| 29 June 2002 | Deutsche Telekom AG | Two 'zero-months' with no pay increase; 4.1% from July 2002; 3.2% from May 2003 | 24 months |
Source: WSI Collective Agreement Archive 2002.
Commentary
The 2002 collective bargaining round has provided for pay increases which are significantly higher than in the previous two years, when employees had to accept a decrease in real pay (DE0201201F). Faced with relatively high expectations among their members, trade unions made clear from the beginning that they would no longer accept a policy of pay restraint. In contrast to the previous bargaining round, they also rejected the employers' attempt to conclude a joint recommendation on the current bargaining round within the framework of the national tripartite Alliance for Jobs (Bündnis für Arbeit) (DE0202205N).
Finally, the unusually high level of industrial action has proved that employers and trade unions in Germany still have rather conflicting views on the meaning of pay policy. While the employers repeatedly call for moderate pay increases in order to improve the competitiveness and profitability of German business, the unions argue that, apart from their economic function to create sufficient consumer demand, pay increases basically have to guarantee employees a 'fair share' of economic wealth. The widespread readiness of many employees to participate in industrial action in 2002 is therefore not simply because they want more money but because they perceive an increasingly 'unfair distribution' of income between employers and employees in Germany. (Thorsten Schulten, Institute for Economic and Social Research, WSI)
Eurofound recommends citing this publication in the following way.
Eurofound (2002), Interim report on 2002 collective bargaining round, article.
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