Industrial Relations in Germany‑ Contexts, Ideology, and Unions

IV‑ Rulemaking‑ Collective Bargaining

Bargaining Structure and Ground rules

•DGB can issue only non‑binding guidelines to affiliates

•Employers in associations forbidden to reach agreement on their own

•Bargainers on both sides usually empowered to make binding agreements

•Three basic types of agreements


	Bargainers on both sides usually empowered to make binding agreements
		Union members can only reject by vote > 75%

	Three basic types of agreements
		Framework agreement - wage payment systems
		Umbrella agreement – all terms and conditions except wages
		Wage agreement - smaller territory & may be renegotiated yearly ‑ Limited to couple of basic wage rates