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IW-Policy Paper No. 11 8. December 2023 Hagen Lesch / Helena Bach / Sandra Vogel Collective bargaining autonomy in a crisis of legitimacy?

In Germany, the employers recognised the trade unions as the appointed representatives of the employees in November 1918.

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Collective bargaining autonomy in a crisis of legitimacy?
IW-Policy Paper No. 11 8. December 2023 Hagen Lesch / Helena Bach / Sandra Vogel

Collective bargaining autonomy in a crisis of legitimacy?

Hagen Lesch / Helena Bach / Sandra Vogel German Economic Institute (IW) German Economic Institute (IW)

In Germany, the employers recognised the trade unions as the appointed representatives of the employees in November 1918.

This introduced collective bargaining autonomy. Since then, it has been observed that the state monitors and sometimes steers the collective bargaining process. This behaviour can be explained by using a Principal Agent Model as an analytical framework. The state acts like a princal, while the social partners behave like agents. While the state leaves the regulation of wages and working conditions to the social partners, it expects their loyalty in return. In this sense, collective bargaining autonomy must legitimise itself by beeing useful. An analysis of historical debates since 1918 shows: If the social partners do not contribute to the economic and social policy objectives of the state, the state uses various steering instruments to restore their loyalty and ensure the usefullness of collective bargaining autonomy. Overall, some learning processes and a high degree of path dependency of the institutional framework can be observed. The learning processes show the state should strengthen and not weaken social partners‘ responsibility in the event of future steering of collective bargaining autonomy.

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Collective bargaining autonomy in a crisis of legitimacy?
IW-Policy Paper No. 11 8. December 2023 Hagen Lesch / Helena Bach / Sandra Vogel

Collective bargaining autonomy in a crisis of legitimacy?

Hagen Lesch / Helena Bach / Sandra Vogel German Economic Institute (IW) German Economic Institute (IW)

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European Minimum Wage Directive and Strengthening Collective Bargaining Coverage
Expertise 25. August 2026 Hagen Lesch / Lennart Eckle / Sandra Vogel

European Minimum Wage Directive and Strengthening Collective Bargaining Coverage

The EU Minimum Wage Directive recommends that EU Member States achieve a collective bargaining coverage of 80 per cent to ensure adequate minimum wages.

Hagen Lesch / Lennart Eckle / Sandra Vogel IW

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IW-Report No. 35 23. July 2026 Christoph Schröder

Collective bargaining coverage and functional income distribution in international comparison

The study examines whether a high level of collective bargaining coverage influences the functional income distribution between companies and employees.

Christoph Schröder IW

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