Trade Unions and Representatives | HEUSER RECHT UND STEUERN
04 • www.heuser.de
Collective
Bargaining
Agreements
Trade Unions and Employers’ Associations
negotiate with each other – each on
behalf of their members. Subject of the
negotiations is mostly the remuneration
– meaning that Trade Unions have a
signifi cant infl uence on every company’s
wage-setting. It is important to note that
Collective Bargaining Agreements normally
provide a classifi cation of employment
based on specifi c characteristics. This
classifi cation is assigned to a particular
wage level. This means that in case
employer and employee are members of
the union or association who agreed on
the Collective Bargaining Agreement the
wage is already set.
But even in case there is no valid Collective
Bargaining Agreement applicable for a
particular work contract, employers should
be aware of comparable employments
and the respective agreed wages in view
of employers’ attractiveness.
Please read more about wages and wagesetting
in our E-Journal “Wages and
Incidental Costs”
Many other key working conditions are
also based on Collective Bargaining
Agreements. At present, about 64,000
Collective Bargaining Agreements2 are
validly in full force and eff ect. Usually, they
apply only in the region of their origin.
There are, however, Collective Bargaining
Agreements, which have been declared
“generally binding”, which means that
they are binding beyond the respective
region.
Collective Bargaining Agreements,
regional and/or sectoral, are largely
compulsory for those employers who are
members of the respective Employers’
Association.
But employers can also be members of an
Association without being committed to
the negotiated agreements. Generally, it
is also possible to agree with an employee
on individual contractual terms. These
terms must, however, be as or more
favourable for the employee as the valid
Collective Bargaining Agreement. If there
is no agreement, Labour Law is to be
applied.
On the other hand, the Ministry of Labour
(Arbeitsministerium) is entitled to declare
that a collective agreement must be
applied to all workers and/or employees
in the respective industry or branch. In
this case, even non-members are bound
to comply with the agreement.
Due to the variety of agreements and
regulations, it is recommended to consult
a competent expert who can provide you
with legal assessment and advise.
Please contact our experts at Heuser
Recht und Steuern for further assistance
or advise.
2Please fi nd a complete list of all Collective Bargaining Agreements on www.bmas.de/DE/Themen/Arbeitsrecht/
Tarifvertraege (German)