BZ Berlin Helsinki, , Sophie Jänicke Collective Bargaining in German Metal and Electrical Industries

BZ Berlin 2 Collective Bargaining in German M+E Industries Basics: The collective bargaining system in German M+E Industries How to set a demand and how to find an agreement „The German model“ IG Metall Policy towards Precarious Work IG Metall Policy towards Working Time Outlook

BZ Berlin 3 Collective Bargaining in German M+E Industries Basics: The collective bargaining system in German M+E Industries How to set a demand and how to find an agreement „The German model“ IG Metall Policy towards Precarious Work IG Metall Policy towards Working Time Outlook

BZ Berlin 4 Legal Basis German Constitution article 9, section 3 – Right of Association and Collective Agreements Act of the Federal Republic of Germany

BZ Berlin 5 Collective Bargaining Autonomy Trade unions have the right to negotiate independently collective agreements with the employers‘ associations without interference from the government.

BZ Berlin 6 Validity of IG Metall Collective Agreements Germany as a whole geographic regions individual companies areasbranchesemployees metal-electro steel IT-sector textile garment wood processing plastic processing craftwork all union members (blue-collar workers, white-collar workers and trainees)

BZ Berlin 7 Collective Bargaining Regions M+E Industries Munich Düsseldorf Hamburg Berlin Hanover Stuttgart Frankfurt M+E-Industries: Regional bargaining of agreements (Following the tradition of the federal state)

BZ Berlin 8 Categories of Collective Agreements I Framework agreements on employment conditions regulate i.e. weekly working hours, length of holiday and holiday pay, extra pay for overtime, extra pay for shift work, night or weekend work usually valid for several years Agreements on wage and salary systems Regulate how blue-collar and white-collar workers are classified on the wage and salary scale according to specific job descriptions the proportion of the wage and salary groups principles of remuneration such as piecework, incentive bonus payments, etc. They are usually valid for several years

BZ Berlin 9 Agreement on wages, salaries and trainee pay increases Regualte the amount of income increases, one-off payments and lump sums usually agreed for 12 months Agreements on specific issues Regulate i.e.pPayment of Christmas bonuses, early retirement, rights for qualification,… usually valid for several years Categories of Collective Agreements II

BZ Berlin 10 The collectivly bargained wage x percent of basic pay (fixed) x percent of basic pay (corridor fixed) Basic pay is increased via collective bargaining on wages and salaries

BZ Berlin 11 Pay scale (blue collar and white collar are integrated) valid from 1st of May st of May 2013

BZ Berlin 12 Collective Bargaining Department Collective Bargaining in German M+E Industries Basics: The collective bargaining system in German M+E Industries How to set a demand and how to find an agreement „The German model“ IG Metall Policy towards Precarious Work IG Metall Policy towards Working Time Outlook

BZ Berlin 13 Main body: Regional Collective Bargaining Commission It consists of union members working in the region the agreement is valid for and of local union officers. Its members are elected at local level and confirmed by the regional conference. It prepares collective bargaining rounds. It decides on the demands. It decides on rejection or approval of the bargaining results.

BZ Berlin 14 Development of union claims the demands are presented to the employers‘ association Members and bodies discusses the economic situationIG Metall delivers an expert opinionthe Executive Committee sets the scale of the demandsunion members in the companies discuss this scalethe Bargaining Commission decides on the demandsthe Executive Committeee authorizes the demands

BZ Berlin 15 Elements of a wage increase demand Example: Current Collective Bargaining Campaign app. 1-1,5 % Productivity increase Increase of consumer prices app. 2,1 % redistribution of profits app. 2 % „redistribution neutral“

BZ Berlin 16 Collective Bargaining Procedure first steps before the negotiations start the current agreement is terminated with proper noticethe demands are sent to the employers‘ association four weeks prior to the expiry of the terminated agreement the Bargaining Commission sets up a negotiating body the negotiations usually start two weeks prior to the expiry of the terminated agreement the demands are drawn up by IG Metall and decided on by the Collective Bargaining Commission

BZ Berlin 17 Collective Bargaining Procedure (negotiations are successful) no-strike obligation terminates after the expiry of the terminated agreement negotiations continue and warning strikes and demonstrations are carried out the negotiations usually start two weeks prior to the expiry of the terminated agreement the Bargaining Commis- sion accepts the result a result is reached the Bargaining Commis- sion accepts the result a result is reached before end of no-strike obligation

BZ Berlin 18 Collective Bargaining Procedure (negotiations are not successful) one of the two parties officially declares the failure new agreement conciliation procedure possible no resultresultanother ballot (25% approval needed) a conciliation procedure is now possiblesubmision of strike ballot/strike to the Executive Committeestrike ballot: if 75% agree, a strike can be carried outmeanwhile the negotiations continue

BZ Berlin 19 Example for a Conciliation Procedure one of the two parties officially declares the failure end of procedure without result rejectionthe Concilation Board is called upondesignation of an impartial chairmanconciliation proposal is made within 5 working daysparties must declare acceptance or rejection within 6 working days new agreement acceptance

BZ Berlin 20 Agreement Examples Annual vacation20 working days30 working days Holiday pay-50% of a monthly gross pay Christmas pay- Up to 55% of a monthly gross pay (in different scales) Working time48 hours per week35 hours per week Other paid leaves-weddings, birth of a child, bereavements Employment after vocational training - Trainees must be kept on for a minimum of 12 months (Agreement Future in Work) Period of noticebefore the end of a month before the end of a quarter Law IG Metall-agreements

BZ Berlin 21 Collective Agreements and Company Agreements What is the difference? Basis: German Constitution Article 9 and Collective Agreements Act Are negotiated between employers‘ associations or individual employers and the trade unions Are valid for all employers afiliated to the employers‘ associacion and to all union members Determine general rules regarding working time, wages, vacation, etc. Set a minimum standard Basis: Works Constitution Act Are negotiated between a particular company and its works council Are valid for all employees of this particular company Are concluded according to the principle of advantage Can only be negotiated if the collective agreement explicitly permits it Must only regulate issues the collective agreement does not regulate or normally not regulate Collective AgreementsCompany Agreements

BZ Berlin 22 Plant agreements cannot regulate remunerations and other working conditions which are already or usually regulated by collective agreements. This does not apply if a collective agreement explicitly allows the conclusion of additional agreements on the plant level. (§77(3) Works Constitution Act)

BZ Berlin 23 Plant agreements regulate (unless there are legal or negotiated regulations, § 87(1) Works Constitution Act) plant rules work schedules holiday planning health and safety at work social facilities (e.g. canteens) determination and modification of remuneration levels

BZ Berlin Deviating Collective Agreements on Company Level Temporary deviations from Collective Agreements on company level are possible since 2004, if a company faces serious economic problems („Pforzheimer Abkommen“) Strict internal rules for a deviation: Internal or external check-up: Is there a serious economic problem? Do we have alternatives (products, processes; partnership etc.) to the deviation? Deviations are not allowed to damage the position of employees in other companies -> no long lasting advantage over the competitors A concept for regaining competitiveness within a defined period is needed (temporary deviation), i.e. via innovation, investment, training, way back to collective standards,… No deviation without getting something in exchange (job security,…) cases in 8/

BZ Berlin What IG Metall conceded in deviating agreements: 25

BZ Berlin … and what we got in exchange: 26

BZ Berlin Basics: The collective bargaining system in German M+E Industries How to set a demand and how to find an agreement „The German model“ IG Metall Policy towards Precarious Work IG Metall Policy towards Working Time Outlook 27

BZ Berlin 28 Employees covered by collective agreements Manufacturing industry in % Source: IAB Betriebspanel The year 2009 is not exactly comparable to former years due to a change in the statistical database. Sector AgreementCompany AgreementNo AgreementNo Agreement, but oriented on an agreement

BZ Berlin 29 Germany: Decreasing Wages Source: WSI 2010 Reason 1: No minimum wage, the wage scale down is unlimited… Development of labour costs

BZ Berlin 30 Reason 2: Highest Cheap-Labour-Sector in Europe

BZ Berlin 31 Reason 3: High number of (short) part-time-jobs, fixed-term-jobs and temoprary work

BZ Berlin 32 Increase of part-time work in the M+E-Industry – Quota of men and women 2000 to 2010

BZ Berlin 33 Increase of Temporary Agency Work Quelle: Bundesagentur für Arbeit (BA), Bestand jeweils Ende Juni Deregulation of TAW by the red/green government: Equal pay, if there is no collective agreement

BZ Berlin 34 New Structure of Work Force Core workforce outsourced workforce and temoprary workers Contract Workers Croudsourced workforce Croudsourced workforce Croudsourced workforce Croudsourced workforce

BZ Berlin Basics: The collective bargaining system in German M+E Industries How to set a demand and how to find an agreement „The German model“ IG Metall Policy towards Precarious Work IG Metall Policy towards Working Time Outlook 35

BZ Berlin Collective Agreement on Extra-Sector -Pay nach 6 Wochen 15 % nach 3 Monaten 20 % nach 5 Monaten 30 % nach 7 Monaten 45 % nach 9 Monaten 50 % On the DGB-collective agreement for TAW Valid for all temporary workers in the whole M+E-Industry Similar agreements in other sectors One step further to equal pay for equal work - political steps have to follow 36 Collective Agreement 2012: Regulation of Temporary Work I

BZ Berlin Collective Agreement for more co-determination of Works Councils concerning temporary work Better information of the works-councils Internal announcement of the job after 3 month of temporary work Only agencies which pay the extra-pay are allowed to cooperate with M+E-Companies After 24 months of continuous work in the same company the temporary worker has the right to get a permanent job 37 Collective Agreement 2012: Regulation of Temporary Work II

BZ Berlin Majority of temporary workers are between 18 and 35 years old Basic priciple: Every apprentice gets a job offer with an unlimited contract after his /her education in the company 38 Collective Agreement 2012: Youth Employment

BZ Berlin Basics: The collective bargaining system in German M+E Industries How to set a demand and how to find an agreement „The German model“ IG Metall Policy towards Precarious Work IG Metall Policy towards Working Time Outlook 39

BZ Berlin Real Working time Germany – EU 27 (Overall Economy) 40

BZ Berlin Normal Working Time im M+E-Industries 41

BZ Berlin Normal Working Time M/E-Sector – Overall Economy 42

BZ Berlin Real Working-Time compared to collectivly agreed Working-Time (M+E-Industries) 43

BZ Berlin Working-Time of Men and Women in the M/E- Sector 44

BZ Berlin Atypical Working-Time increasing 45 Saturday workSunday workNight workShift work Saturday, Sunday, night or shift

BZ Berlin IG Metall Policy towards Working-Time Reduction of working-time as an efficient tool for saving employment in economic crises (via collective agreement or financed by state subsidies as „Kurzarbeit“) Real working hours back to the collectivly bargained working hours via good working-time policy on company level and regulation of working-time accounts Every working-hour has to be payed Shift work has to be regulated according to labour-scientific expertise Working-time policy on company level needs to be connected with performance regulating policy and human ressources policy 46

BZ Berlin 47 Collective Bargaining Department Collective Bargaining in German M+E Industries Basics: The collective bargaining system in German M+E Industries How to set a demand and how to find an agreement „The German model“ IG Metall Policy towards Working Time IG Metall Policy towards Precarious Work Outlook

BZ Berlin Collective Bargaining Round 2013 Demand of 5,5 % wage increase for 12 month for all M+E- employees Beginning of bargaining before easter From 1st of May (warning-)strikes are possible Agreement …??? 48

BZ Berlin Campain: Work – safe and fair! More regulations on contract work Better working conditions (salaries, working time, work-life-balance and performance) Safe on work, safe in retirement 49

BZ Berlin IG Metall Center for Training and Education, Berlin Sophie Jänicke, Tel.: +49/30/ , Thanks for your attention!