German Economic Institute (IW)
Employer organisations play a decisive role in a variety of fields, such as collective wage bargaining, developments in legislation and the formation of economic and social policy. In particular, national peak employer organisations shape a broad range of issues via their direct and indirect influence on consultative processes at the national and international level. While the role of peak organisations has not considerably changed in recent years, new developments are to be observed at the sectoral level. Employer organisations in certain sectors have endeavoured to enhance their influence by reorganising their structures.
Since the signing of the Stinnes-Legien Agreement in 1918, the collective bargaining autonomy of Germany’s employers’ associations and trade unions has been the subject of continual political debate and at times its legitimacy even called into question.
Germany’s Minimum Wage Act accords a Minimum Wage Commission the task of deciding on a biennial adjustment to the minimum wage. While including an overall assessment, their decision is to be oriented on the development of collective wages.