This article offers an introduction to independent collective bargaining, trade unions and employers' associations, labor market, and the employment structure in Germany. This piece of information will give you a brief insight into employment in Germany.
Independent collective bargaining
The collective wage bargaining partners – trade unions and employers and employers’ associations – negotiate collective bargaining agreements. The state sets the general working conditions, though not how much workers are paid. This and the settlement of other questions – such as vacation and working hours – is left to collective bargaining. In some sectors, the state has mandated minimum wages to be set by collective wage bargaining.
Trade unions and employers’ associations
The largest association of trade unions is the Deutsche Gewerkschaftsbund (DGB), which has 6.4 million members. The DGB represents eight member trade unions, the largest is IG Metall. The employer associations are the unions’ partners in wage negotiations. Their umbrella organization, the Bundesvereinigung der Deutschen Arbeitgeberverbände (BDA; Confederation of German Employers’ Associations), represents some two million companies. Other business associations are: Deutscher Industrie- und Handelskammertag (DIHT; Association of German Chambers of Industry and Commerce), Bundesverband der Deutschen Industrie (BDI; Federation of German Industries).
Labor market
About 40 million persons were gainfully employed in Germany at year-end 2007 – and thus more than ever before. At the same time, the number of unemployed fell to below 3.5 million. This prime trend was fostered by the strong economy, proactive labor market policies, lower ancillary wage costs, modest reforms to labor laws (in particular as regards protection against dismissal) and stronger investments in young people’s qualifications.
Employment structure
The vast majority of the approximate 40 million employed and self-employed in Germany works in the service sector and in manufacturing.
To gain a deeper understanding of employment in Germany, it may be a good idea to get your hands on more in-depth resources, and to speak to people who are already working in Germany.
Source: Tatsachen-ueber-deutschland
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