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DGB exerts pressure for more collective bargaining coverage in companies

In 2024, the German Trade Union Confederation is planning numerous campaigns to promote greater compliance with collective bargaining agreements at companies in Rhineland-Palatinate. The union is also calling on the state government to do the same.

Susanne Wingertszahn, Chairwoman of the DGB Rhineland-Palatinate/Saarland, speaks. Photo.aussiedlerbote.de
Susanne Wingertszahn, Chairwoman of the DGB Rhineland-Palatinate/Saarland, speaks. Photo.aussiedlerbote.de

Trade unions - DGB exerts pressure for more collective bargaining coverage in companies

The German Trade Union Confederation is increasing the pressure for greater collective bargaining coverage in Rhineland-Palatinate companies. Political incentives must be created in order to achieve greater collective bargaining coverage again, said Susanne Wingertszahn, state chairwoman of the DGB, to the German Press Agency in Mainz. "The decisive lever is that the state of Rhineland-Palatinate and the local authorities only give taxpayers' money to companies that adhere to collective agreements."

The trade unionist warned that this is regulated by the State Collective Bargaining Act and must be tightened up, as agreed in the coalition agreement. "Contracts and subsidies awarded by the state should only be paid out if it is clear that they will create and promote good jobs - i.e. jobs that are subject to collective agreements." The state government needs to take a clear stance with concrete economic and labor market policy measures in order to create incentives for greater collective bargaining coverage.

Employees who benefit from a collective agreement have more free time, a better quality of life and higher wages, explained Wingertszahn. Employees who are covered by a collective agreement earn on average twelve percent more, receive significantly more vacation and Christmas bonuses and work around one hour less per week than full-time employees.

Collective agreements also ensure fair competition between companies, as they protect companies from wage dumping by competitors, said the DGB chairwoman. In times of crisis, they also ensure greater planning security and reliability for both companies bound by collective agreements and employees.

The head of the DGB announced that the DGB would be stepping up the pressure for greater collective bargaining coverage in 2024. In addition to an intensive exchange with politicians and associations, the distribution of flyers and postcards, the hanging of posters and large banners as well as activities on the streets and squares in the state are also planned.

According to DGB calculations based on data from the Federal Statistical Office, the state loses large sums of money as a result of employers' wage evasion. In total, the social security system in Germany loses around 43 billion euros a year in contributions, while the federal, state and local governments lose around 27 billion euros in taxes, the union reported in November.

Collective bargaining evasion is the attempt by an employer to circumvent a collective agreement in order to pay lower wages and salaries. This can be done, for example, by leaving an employers' association. According to the DGB, this collective bargaining evasion also leads to lower payments into social insurance schemes - i.e. lower income from unemployment, pension and health insurance. Tax revenues from income tax are also lower.

The Confederation of German Employers' Associations (BDA) criticized the DGB's campaign, saying that collective agreements and collective bargaining commitment are primarily a joint task of the social partners.

Read also:

  1. In accordance with the Coalition agreement, the DGB in Rhineland-Palatinate urges the state government to tighten the State Collective Bargaining Act, focusing on withholding public funding for companies that do not comply with collective agreements.
  2. According to Susanne Wingertszahn, the DGB chairwoman, companies that adhere to collective agreements provide workers with better wages, more vacation time, and improved working conditions, contributing positively to the labor market.
  3. The German Press Agency reported that the DGB plans to intensify its pressure for stronger collective bargaining coverage in 2024, involving activities like lobbying politicians, distributing materials, and conducting public events throughout Rhineland-Palatinate.
  4. As per DGB estimates, employer non-compliance with collective agreements results in significant losses for the social security system and government taxes, highlighting the importance of collective bargaining coverage in Rhineland-Palatinate's companies.

Source: www.stern.de

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