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Earnings & labour costs

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Collective agreements

Minimum wage reduces spread of agreed earnings in individual branches

The difference between the highest and lowest earnings groups in collective wage agreements decreased by 0.2% in the overall economy between December 2014, shortly before the statutory minimum wage was introduced, and June 2017. The Federal Statistical Office (Destatis) also reports that the spread was reduced by 5.7% over the same period when only wage agreements are considered which in December 2014 had included earnings groups below the minimum wage of 8.50 euros introduced from January 2015.

More : Minimum wage reduces spread of agreed earnings in individual branches …

Collective bargaining: What has been agreed upon and what are the sectors in which collective bargaining is currently taking place?

In 2016, new collective agreements were concluded in many sectors, such as in the public service of the Federation and the municipalities (TVöD), in the metal-working and electrical industry, in construction and in the chemical industry.

More : Collective bargaining: What has been agreed upon and what are the sectors in which collective bargaining is currently taking place? …

Indices of agreed earnings
and working hours

Agreed earnings in the 3rd quarter 2017 up 1.4% on the same quarter a year earlier

The collectively agreed earnings, as measured by the index of agreed monthly earnings including extra payments, increased by an average of 1.4% in the third quarter of 2017 compared with the same quarter of the previous year. Consumer prices were up by an average of 1.8% over the same period.

More : Agreed earnings in the 3rd quarter 2017 up 1.4% on the same quarter a year earlier …

Collective
bargaining coverage

45% of employees worked in businesses bound by collective agreements in 2014

In 2014, roughly 45% of the employees in Germany worked in businesses bound by collective agreements, that is, in businesses subject to either a branch-specific collective agreement (41%) or a company agreement (4%). Based on the results of the structure of earnings survey, the Federal Statistical Office (Destatis) also reports that the proportion of businesses subject to collective agreements was just under 15% in 2014.

More : 45% of employees worked in businesses bound by collective agreements in 2014 …

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