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.
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, employ
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