Germany: about only 50 percent of employees work in a company covered by a sectoral collective agreement

According to a survey released on June 2 by the Institute for Employment Research (IAB), the erosion of the collective agreements system, which started in the mid-90s, continues in Germany.  In 2013, 52 percent of employees in western Germany worked in a company covered by a sectoral collective agreement, as opposed to 53 percent in 2012 and 70 percent in 1996.  In eastern Germany, the decline is even worse.  In 2013, only 35 percent of employees were covered by the advantages granted by a sectoral agreement, versus 36 percent in 2012 and 56 percent in 1996.  However, there are major differences between sectors and businesses depending on their size.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

The drop continues, but slower. Since 1996, the IAB research institute, which answers to the Federal Employment Agency, carries out an annual survey on the number of businesses covered by a collective agreement (Tarifbindung), from a panel of about 15,700 representative firms in eastern and western Germany (IAB-Betriebspanel – 2013). Susan Kohaut and Peter Ellguth, researchers at the IAB, say this survey gives a good overview of the situation in about 2.1 million businesses in Germany,...

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
France: social conference on labour and pensions to proceed without main employers’ group
The preparatory meeting ahead of the social conference on labour and pensions, which is set to decide on the pension system model and the funding thereof, was held on 4 November at France's labour...
Spain: already well on the way to pay transparency?
Spain is preparing for the implementation of its national law transposing the EU Pay Transparency Directive, which will take effect on 7 June 2026. The legislation marks another step forward in...
5 November 2025
Italy: decree-law adopted to increase workplace safety
On 28 October, the Italian cabinet adopted a decree-law on health and safety at work, aimed at preventing and reducing accidents. The text addresses both the powers and actions of supervisory...
4 November 2025
Romania: parents of children with disabilities granted up to eight days of remote work per month
On 9 October, the Romanian parliament adopted a bill aiming to bolster support for parents of children with disabilities up to the age of 18. The legislation, which came into force on 12 October...
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Netherlands: ING cites AI as it plans to cut around 950 jobs
Dutch bank ING has informed the employment agency UWV that it may cut around 950 jobs by 31 December 2026. In its notification on 20 October, the lender said the planned reductions stem partly...
30 October 2025
2
Germany: legal battle at Tesla ahead of works council election
The Frankfurt/Oder labour court has postponed a mid-November hearing in the case between the IG Metall union and Michaela Schmitz, employee representative and head of the works council at the...
3
France: generative AI and older workers central to BPCE’s skills management strategy
On 17 July 2025, BPCE and its trade unions signed a second agreement on jobs and career management within the banking group. The text places generative artificial intelligence at the core of its...
4
France: austerity measures proposed in social security financing bill for 2026
Limits on sick leave, the end of social security exemptions for apprentices, and the introduction of additional birth leave: the 2026 social security financing bill, presented to parliament on 14...
16 October 2025
5
Candice Guillot (Talan): “Our recruiters save just over 80 hours per year on administrative tasks thanks to AI”
Candice Guillot, group director of employee experience and HR performance at Talan (7,000 employees), outlines for mind RH her vision and strategy for introducing artificial intelligence at the...
20 October 2025
6
AI-driven job cuts on the rise in tech sector
As leading tech companies ramp up investment in artificial intelligence (AI) and roll out transformation plans to boost its development, layoffs across the sector are increasing. But are the job...
7 October 2025