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Helena Bach / Carolin Fulda / Sandra Vogel IW-Trends No. 1 12. March 2024 The Pros and Cons of Trade Union Membership

The decline in collective bargaining coverage in Germany is often attributed to the reluctance of companies to join an employers' association which negotiates collective agreements.

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The Pros and Cons of Trade Union Membership
Helena Bach / Carolin Fulda / Sandra Vogel IW-Trends No. 1 12. March 2024

The Pros and Cons of Trade Union Membership

German Economic Institute (IW) German Economic Institute (IW)

The decline in collective bargaining coverage in Germany is often attributed to the reluctance of companies to join an employers' association which negotiates collective agreements.

However, this is to neglect the fact that effective trade unions are also necessary to negotiate collective agreements. In view of the workforce’s growing reluctance to organise collectively, we surveyed 2,564 employees in the metal and electrical industry on their trade union involvement and their attitudes towards collective bargaining. An analysis of the survey results shows that the collective bargaining system is valued by both union members and non-members. Workers in the industry are more concerned about the decline in collective bargaining coverage than about the falling level of unionisation. The trade union members surveyed are mostly satisfied with their organisation and are convinced that better working conditions can be achieved collectively. They also want trade union membership to protect them as individuals, for example with strike pay or legal advice. The reasons for a lack of trade union involvement are complex: Insufficient information and the lack in direct membership benefits play a role, as do a general trend towards individualisation and trade unions’ policy focuses. These results provide starting points for dealing with unions’ membership decline.

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The Pros and Cons of Trade Union Membership
Helena Bach / Carolin Fulda / Sandra Vogel IW-Trends No. 1 12. March 2024

The Pros and Cons of Trade Union Membership

German Economic Institute (IW) German Economic Institute (IW)

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Manager im Gehaltsgespräch mit jungem Mitarbeiter.
Hagen Lesch IW-Trends No. 2 18. April 2024

German Wage Policy between Inflation and Stagnation: Are Conflicts with the Aims of Monetary Policy Looming?

After the economic and financial crisis of 2008/9, the German labour market soon began to recover, creating scope for a comparatively expansive wage policy.

IW

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Thomas Obst / Maximilian Stockhausen IW-Analyse No. 155 9. January 2024

A Macroeconomic Analysis of Wage-Price Spirals

The subject of this Analysis is the forms that wage-price spirals can take and how they influence macroeconomic stability and inflationary trends in Germany.

IW

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