Criticizing Collective Bargaining Coverage Demands from Trade Unions
Joachim Schulz, the boss of employers' association Südwestmetall, took a swipe at employee representatives for relying on the legislator for help with collective bargaining agreements. He stated, "Trade unions make it far too easy for themselves when they call on the legislator to increase collective bargaining coverage through coercive measures." The German Press Agency reported these remarks in Stuttgart.
Recently, DGB state head Kai Burmeister criticized employers for evading collective bargaining and the lack of coverage. Burmeister urged the state government to implement the reform of the State Collective Agreement and Minimum Wage Act, as agreed upon in the coalition agreement. He suggested that regional collective agreements should serve as the benchmark for public procurement, and public contracts and subsidies should only be awarded to companies that adhere to collective agreements.
Alarming Decline
Schulz pointed out that the significant decline in collective bargaining coverage in recent decades has raised concerns for both sides - trade unions and employers. He labeled it an "alarm signal." However, using the term "collective bargaining flight" creates a false image, argued Schulz. In Germany, there's no obligation to be bound by collective agreements. Instead, the focus should be on structuring collective agreements to benefit both sides, avoiding or removing regulations leading to excessive company implementation efforts.
Forcing Unfavorable Regulations
Over the past few years, trade unions have often imposed regulations that are attractive to employees but increasingly seen as disadvantageous by employers. This has led to a retreat from collective bargaining, as Schulz mentioned. If, in some cases, trade union officials stir up conflict in companies, it often triggers emotional resistance from employers, he added.
According to Südwestmetall, around 525,000 people are currently employed in the metal and electrical industry in Baden-Württemberg, across nearly 700 companies covered by collective agreements. Collective bargaining coverage amounts to around 55 percent - far from the highs of over 80 percent in the 1970s.
Related Readings
The Metal Industry's Collective Bargaining Landscape
In Southwest Germany, the metal industry, comprising approximately 525,000 employees and nearly 700 companies covered by collective agreements, plays a crucial role in the collective bargaining landscape.
Employers' Perspective
To increase profitability, employers have implemented cost-cutting measures and massive workforce reductions. Employers like VW have taken various steps to reduce labor costs, cut bonus payments, and extend working hours. This effort aims to achieve annual savings of over €15 billion, with over €4 billion derived from labor costs and structural adjustments.
Trade Unions' Perspective
Union failure to effectively organize labor disputes and secure better collective agreements has generated criticism. While workers within Volkswagen have demonstrated a high degree of organization, the IG Metall leadership has been criticized for advocating "social partnership" instead of militant action, resulting in limited mobilization and no full-scale strikes.
Proposed Solutions to Rebuild Collective Bargaining Power
- Militant Union Networking and Strikes: Advocates for a shift in strategy within IG Metall suggest abandoning social partnership and embracing constant mobilization for strikes, even factory occupations, to rebuild a militant workers' network and build pressure to improve collective agreements.
- Solidarity and Joint Actions: A call for solidarity with other workforces threatened by job cuts, such as Bosch, ZF, and Ford, could generate significant worker mobilization and public demonstrations, strengthening unions’ positions.
- Renewing Focus on Class Struggle: Emphasizing the importance of solidarity among workers and prioritizing the economic and political demands of the working class is seen as a fundamental step to reclaim the union's role as an advocate for the working class.
Enrichment Data
The decline in collective bargaining coverage in the metal industry in Germany is attributed to both employer and trade union factors. Employers have intensified their efforts to reduce labor costs, cut bonuses, and extend working hours in pursuit of profit-maximization. Trade unions have simultaneously failed to effectively represent workers during labor disputes, agreed to wage freezes, and failed to engage in militant actions to demand better collective agreements.
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