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IW-Trends No. 1 12. March 2024 Helena Bach / Carolin Fulda / Sandra Vogel 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
IW-Trends No. 1 12. March 2024 Helena Bach / Carolin Fulda / Sandra Vogel

The Pros and Cons of Trade Union Membership

Helena Bach / Carolin Fulda / Sandra Vogel 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
IW-Trends No. 1 12. March 2024 Helena Bach / Carolin Fulda / Sandra Vogel

The Pros and Cons of Trade Union Membership

Helena Bach / Carolin Fulda / Sandra Vogel German Economic Institute (IW) German Economic Institute (IW)

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The Minimum Wage as a Means of Combating Income Poverty
IW-Trends No. 1 28. March 2026 Lennart Eckle / Christoph Schröder

The Minimum Wage as a Means of Combating Income Poverty

Although raising Germany’s minimum wage to12 Euro in October 2022 had a noticeable effect on wage distribution, the effect on income poverty remained minimal.

Lennart Eckle / Christoph Schröder IW

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IW-Trends No. 4 23. December 2025 Hagen Lesch

Germany´s Changing Industrial Relations: A Comparison with Other OECD Countries

The extent of industrial action in Germany – the number of working days lost due to strikes and lockouts - has increased significantly, albeit from a low base.

Hagen Lesch IW

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