Collective bargaining agreements are agreements between unions and employers (or employer associations). They are reached after collective bargaining. Unions and employers sometimes sit down together for nights on end to discuss the issues. In the end, there’s usually an agreement on how long the workday is, how much vacation time employees get, and how much pay employees are entitled to.
Who are collective bargaining agreements applicable to?
Collective bargaining agreements have scopes of application: personal, geographical, and sectoral. It sounds bureaucratic, but it’s easy to explain. For example, a collective bargaining agreement applies
- For employees (in person)
- in the automotive trade (technical)
- in Lower Saxony (geographically).
Conversely: In this case, it does not apply to blue-collar workers, not in the metal industry, and not in North Rhine-Westphalia—they have their own. Collective bargaining agreements are usually concluded for a specific region—the one in which the respective employers’ association is active. This is then called a regional collective bargaining agreement.
What’s the difference from a company-level collective bargaining agreement?
There are also company-level collective bargaining agreements between IG Metall and individual companies (the best-known example: Volkswagen). IG Metall has also concluded so-called recognition agreements with individual companies: Although the company is not a member of the employers’ association, it commits to applying the provisions of the regional collective bargaining agreement.
What types of collective bargaining agreements are there?
Collective bargaining agreements on pay determine how much you earn. They are typically concluded annually or (increasingly) for slightly longer periods. Framework collective bargaining agreements on vacation, working hours, special leave, and similar matters usually run for several years. In addition, the bargaining parties (IG Metall and employers) can agree on many other matters. For example, there are collective bargaining agreements on job security (which regulate permanent employment after apprenticeship), retirement benefits (keyword:
MetallRente), training, and much more.
Why is it important for as many people as possible to be members of IG Metall?
Collective bargaining agreements can only be reached if the unions, with as many members as possible, can build up enough pressure to secure an extra percentage point or two—or to address an issue in the first place. This also means that unions can go on strike if employers refuse to cooperate.
What are the legal aspects?
Collective bargaining agreements apply only to those for whom they are concluded: to companies that are members of the employers’ association (or that have signed a collective bargaining agreement themselves) and to union members. Practical implication: If, in a company covered by the collective bargaining agreement, not everyone is hired after completing their apprenticeship, those who are not union members will be the first to lose their jobs. The others have a right to be hired.
