1. Home
  2. Studies
  3. 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

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.

Download PDF
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.

Download PDF
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)

More about this topic

More about this topic

Read the article
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

Read the article
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

More about this topic

Content element with id 9713