Whilst collective agreements for some 3 million workers in the retail sector are in the throes of being negotiated, the German supermarket chain Real SB-Warenhaus GmbH that belongs to the Metro group announced on June 17 that it would not longer apply the sector’s collective agreements. Going forward it will be looking to negotiate an ‘in-house collective agreement’ (Haustarifvertrag) with the services union Verdi. Real argued that businesses that adhere to the collective agreements were at a competitive disadvantage to those who did operated outside the agreements. Real’s decision comes two years after retail chain Globus also stepped outside the system and the decision delivers another blow to the retail sector’s ailing collective agreement system.
Competition distorted. Real stated it was not leaving the business leaders retail body (Handelsverband Deutschland – HDE) but that it would opt for “membership without collective agreement” (Mitgliedschaft ohne Tarifbindung – OT). This option allows businesses membership advantages (for example, legal assistance) without having to apply collective agreements. Real with roughly 300 ‘hypermarkets’ employs almost 38,000 and justified its decision on grounds of “distortions to competition” generate
…Do you have information to share with us?