Majority of works councillors unconvinced about decentralisation of bargaining

Nearly three-quarters of German works and staff councillors consider that decentralisation of the current system of branch-level collective bargaining has either negative or ambiguous effects. Only 12% are in favour of further decentralisation. These are among the findings of a 1997/8 survey from the WSI research institute, published recently.

In recent years, Germany has seen a continuing process of decentralisation of collective bargaining through the increased introduction of "opening clauses" in branch-level agreements, which to a certain extent allow companies to diverge from collectively agreed standards (DE9709229F). A recent study carried out by the Institute for Economic and Social Research (Wirtschafts- und Sozialwissenschaftliches Institut, WSI) has now found that a majority of members of (private sector) works councils and (public sector) staff councillor take a rather sceptical view of this development. According to the data recently published from the representative WSI works and staff council survey 1997/8, about 37% of works councillors and 22% of staff councillors see the decentralisation of collective bargaining as "negative", while another 40% of works councillors and 43% of staff councillors see it as "ambiguous - see the table below".

In the experience of many works councillors, a decentralisation of collective bargaining has diminished their bargaining power at company level. As other, more qualitative studies, indicate, branch-level collective agreements have a certain "relief function" (Entlastungsfunktion) which makes it easier for works councillors to reject employers' demands for reduction of social and employment standards (DE9802248F). Against the present background of high unemployment and increased competition, a decentralisation of collective bargaining increases the pressure on works councillors to accept social concessions.

About 12% of the works and staff councillors questioned in the survey, however, welcome the decentralisation of collective bargaining because they see it as an opportunity to increase their influence and to achieve regulations which fit the specific needs of the company better. Unsurprisingly, the number of supporters of further decentralisation is a little higher in larger companies where the works councillors usually have a better bargaining position anyway.