Pay, Vacation, Working Hours Collective bargaining agreements: What they offer, who benefits

Significant Impact

The figures show just how significant the impact of collective bargaining agreements is for individuals. Jörg Hofmann, President of IG Metall, puts it this way: “Equal pay for equal work: Collective bargaining coverage is and remains a prerequisite. It is the number one issue of fairness.” IG Metall will therefore advocate for “increasing collective bargaining coverage among companies and employees year after year.”

The positive effects of collective bargaining coverage are not limited to financial benefits. In many other respects as well, employees covered by collective bargaining agreements are far better off than their colleagues who are not.

Working Hours

48 hours per week—that is the maximum allowed for the long-term average of weekly working hours. This is regulated by the Working Hours Act. In sectors without collective bargaining agreements, working hours often total 40 hours or more per week. With a collective bargaining agreement, however, working hours are significantly lower; in the metal and electrical industries, for example, the average weekly working hours are 35 hours in the old federal states and 38 hours in the new ones.

Vacation and Vacation Pay

The statutory vacation entitlement for a 5-day workweek is only 20 days per year. Employees covered by the metal industry collective bargaining agreement are entitled to 30 days, plus approximately 70 percent of their monthly income as a vacation bonus.

Christmas Bonus

77 percent of employees covered by a collective bargaining agreement receive a Christmas bonus, but only 42 percent of those not covered by such an agreement do.

Women

The so-called pay gap—that is, the amount by which women earn less on average than men—is significantly smaller in companies covered by collective bargaining agreements than in those that are not.

Apprentices

Being hired after completing their apprenticeship: This prospect helps many apprentices sleep more soundly. In the metal and electrical industries and in the steel sector, permanent employment is guaranteed by collective bargaining agreements, provided there is a company-specific procedure in place. If no such procedure exists, a 12-month probationary period applies.

During collective bargaining negotiations, IG Metall has repeatedly secured special provisions for apprentices: for example, coverage of travel expenses to vocational school, disproportionately higher increases in apprenticeship wages, or days off before exams.

Temporary Work

Employees at temporary staffing agencies receive industry-specific bonuses in many of IG Metall’s sectors. These industry bonuses help narrow the pay gap that often exists between them and permanent staff.

For temporary workers employed in the metal and electrical industries, IG Metall has also negotiated the following provisions in the “Temporary and Agency Work” collective bargaining agreements: After 24 months of employment at the latest, companies must offer temporary workers a permanent position. In addition, companies must negotiate with the works council if they wish to employ temporary workers.

Education

Many professions are becoming increasingly demanding. IG Metall provides employees with better opportunities for continuing education. To this end, there are collective bargaining agreements on in-house continuing education. The 2015 collective bargaining round also introduced part-time education leave. Metal and electrical workers can now take a leave of absence if they wish to pursue continuing education or study. A return to full-time employment is guaranteed.

Part-Time Retirement

Flexible transitions into retirement—that’s what many people want. An IG Metall employee survey found that only one-third of people believe they will be able to work until the statutory retirement age. Thanks to IG Metall’s collective bargaining agreements, many employees can enter partial retirement, for example in the metal, electrical, and steel industries, which feature physically demanding jobs.

Fairness and Transparency

In a company without a collective bargaining agreement, employers can decide at their discretion who earns what. This often leads to unfairness: Two employees in the same position who perform equally are still paid differently. With a collective bargaining agreement, wages are clearly regulated and transparent.

Tip: It’s worth it for employees to check whether a company is covered by a collective bargaining agreement as early as the job search stage. And if a company doesn’t have a collective bargaining agreement, that doesn’t have to be a permanent situation. An active workforce can fight to secure a collective bargaining agreement. Advice and assistance are available at IG Metall offices.