- Businesses and labor organizations engage in debates concerning collective bargaining.
Business owners in Rhineland-Palatinate want a reasonable discussion without harsh accusations from unions regarding the area-wide agreement coverage in the region. As stated by Johannes Heger, president of the Association of Employers' Associations (LVU), to the German Press Agency in Mainz, "If we aim to draw more businesses into area-wide agreements, we should first consider why they have distanced themselves from them initially."
Heger cautioned against underestimating the employers' responsibilities. When you observe the hefty contracts filled with numerous complicated and scarcely implementable special regulations, it's unsurprising that businesses shy away from these agreements.
Over the years, there's been a decline in coverage for area-wide agreements, while the number of company-specific agreements has escalated significantly, according to Heger. Susanne Wingertszahn, chairwoman of DGB Rhineland-Palatinate, previously reported that about half of the employees in Rhineland-Palatinate are now covered by a collective agreement. This was almost three-quarters in the early 2000s.
Wingertszahn characterized the development as dramatic, with only one in three companies in Rhineland-Palatinate now covered by collective agreements. "The coverage of collective agreements has been dwindling for years, also due to employers evading their responsibilities," Wingertszahn shared in an interview with the dpa.
To bolster collective agreement coverage, businesses must be persuaded anew that this is the optimal solution for them, according to Heger. By pointing out the advantages more clearly, this can be achieved. These benefits primarily stem from the fact that the agreements are negotiated by equal bargaining partners who ensure a fair balance of interests and reach agreements that both parties can accept.
However, the aggressive wage demands and reduced working hours pushed by some trade unions during the current economic struggles and skill shortage are not only ill-considered but also damaging, the businessman argued. The frequent and excessive use of strike actions by trade unions is further deterrent.
Heger also warns against trying to impose impractical regulations through the collective agreement compliance law. "This not only distorts the true picture of competition in public procurement, but also generates unnecessary bureaucracy and astronomical costs at the expense of the general public."
The DGB has advocated for improvement of the collective agreement compliance law in Rhineland-Palatinate for quite some time. In their view, the goal should be for the state to only award funds for public contracts to companies that are also covered by collective agreements.
Heger suggested that to increase coverage of area-wide agreements, businesses need to be convinced of their benefits, which include fair balance of interests and agreements acceptable to all parties, often achieved through negotiations by equal bargaining partners in a trade union. However, some trade unions' aggressive wage demands and excessive use of strike actions during economic struggles and skill shortages can deter businesses from participating in collective agreements.
