What is a collective agreement?
A collective agreement is a written agreement between a trade union and an employer or employers’ association that regulates the working conditions for a specific industry or company. It sets minimum standards for wages, working hours, vacation, notice periods and other working conditions. Collective agreements apply directly and mandatorily to the members of the parties to the agreement and can also be binding for non-members under certain conditions.
Legal basis
The legal basis for collective agreements is the Collective Agreement Act (TVG) of 1949, which regulates the content, form and effect of collective agreements, among other things. In addition, collective bargaining autonomy is enshrined in Article 9 (3) of the German Basic Law, which gives the parties to collective agreements the right to regulate working conditions independently and without state interference.
Types of collective agreements
There are various types of collective agreements, including
- Regional collective agreements: Applies to an entire industry or region.
- Company collective agreements: Are concluded between a trade union and an individual company.
- Collective wage agreements: Regulate the remuneration of employees.
- General collective agreements: Contain general working conditions such as working hours, vacation and notice periods.
- Framework collective agreements: Define basic working conditions and serve as a basis for further specific agreements.
Scope of application and general applicability
Collective agreements generally apply to the members of the parties to the agreement. Under certain conditions, a collective agreement can be declared generally binding by the Federal Ministry of Labor and Social Affairs. In this case, it also applies to employers and employees within the scope of application who are not bound by the collective agreement.
Advantages of collective agreements
Collective agreements offer advantages to both employees and employers:
- Legal certainty: Clear regulations create transparency and avoid disputes.
- Equal treatment: Uniform standards promote the equal treatment of employees.
- Planning security: employers can calculate better, employees have reliable working conditions.
- Social peace: Negotiating working conditions by consensus reduces labor disputes.
Conclusion
Collective agreements are a central instrument of labor relations in Germany. They make it possible to create fair and transparent working conditions and contribute to the stability of the labor market. Thanks to the legally guaranteed autonomy of collective bargaining, employers and trade unions are able to make their own arrangements that meet the specific needs of their industry or company.