Collective bargaining in the skilled trades - what is it?

Have you ever wondered how salaries are determined in different sectors? Collective bargaining in Germany is a key instrument for determining wages, working hours and working conditions. Collective agreements negotiated between trade unions and employers' associations mean that both you - as an employee - and the company benefit from clear regulations on salary, working hours and other working conditions. There are different types of collective agreements, which generally apply to entire sectors or regions. But what exactly does this mean for you as an employee or employer in the skilled trades sector?

What is tariff formation in Germany?

Collective bargaining describes the process by which employers and trade unions negotiate pay and working conditions in collective agreements. Trade unions represent the interests of employees, while employers' associations represent the perspective of companies. The resulting collective agreement regulates bindingly important points such as minimum wages, working hours and vacation days.

A collective agreement does not automatically apply to every employee and company. If the employer is part of an industry covered by a collective agreement and belongs to an association covered by a collective agreement, the collective agreement can be explicitly stipulated in the employment contract. Employees can also decide individually whether or not to opt for the collective agreement - this means that you can theoretically choose to work outside the collective agreement and negotiate your own salary, working hours and other conditions with your employer.

Who is covered by collective bargaining in Germany?

A collective agreement generally applies to employees whose company belongs to a corresponding employers' association or who are themselves members of a trade union. In many industries - particularly in the large industrial sectors, but also in the skilled trades - collective bargaining is widespread . It has numerous advantages:

• Transparency: A clearly regulated salary that applies not only to your company, but to all companies covered by the same collective agreement.
• Less negotiation at an individual level: you don't have to fight for every pay rise or change to your working conditions - these are automatically adjusted to the provisions of the collective agreement.
• Protection through trade unions: As a union member, you not only benefit from collective bargaining, but also have a strong organization behind you that can support you in the event of conflicts.

Collective bargaining has a major influence on salary differences. On average, you earn 11% more pay in companies bound by collective agreements (according to verdi.de); as a truck driver in IG Bau, you even earn a whole 900 euros more than your colleagues on average across Germany (wsi.de and Stepstone). You can find more information on the different pay scales by occupational group at wsi .de.
Trade unions and collective agreements not only ensure fair, transparent working conditions, but also a future-proof, competitive salary in your region. You can find more information on salaries in the various German cities, such as the average salary in Munich or the Hanseatic city of Hamburg, on our website.  

Collective bargaining in the skilled trades

Collective bargaining also plays a central role in the skilled trades, as it creates security and fair working conditions, especially for smaller companies and specialized skilled workers. Collective agreements are widespread and firmly established in skilled trades, such as in the construction, metal and electrical sectors. According to the Federal Statistical Office, around 42% of all employees in the skilled trades sector were employed in a skilled trades company covered by a collective agreement in 2022.

You can find out whether and which trade union is responsible for your profession on the official website of the German Trade Union Confederation. You can then find more information on the website of the respective trade unions, for example IG Metall is responsible for many skilled trades. 

These contracts provide employees with a fixed basis that clearly regulates not only salary, but also working hours, vacation arrangements and additional benefits such as special payments or overtime compensation. This ensures stable working conditions and competitive relationships and enables both employers and employees to plan for the long term and rely on fixed structures. For employees in the skilled trades, this often means that they do not have to worry about many contractual details individually, as the trade unions and employers' associations negotiate and adapt these points.

It is particularly important to note that collective agreements in the skilled trades sector are often negotiated at regional level and can therefore vary from state to state or city to city. This means that salary structures and working conditions depend heavily on the respective region. In southern federal states such as Bavaria or Baden-Württemberg, for example, wages in the skilled trades are often higher than in northern or eastern regions of Germany. The number of companies bound by collective agreements is also much higher in the west, with Saarland and Bremen leading the way (Federal Statistical Office). 

These regional differences are reflected in the cost of living and the demand for skilled workers. At the same time, for employees this means that a move to another region can also offer new financial prospects. We can therefore advise you to find out not only about the professions, but also about the regional conditions in the skilled trades.

Especially for foreigners deciding where to settle in Germany, information about expected salaries is extremely important. For more information on how to immigrate to Germany and find a job in Germany quickly, take a look at our article on jobs in Germany as a foreigner.

Best-paid jobs in the skilled trades

The skilled trades sector offers a wide range of well-paid professions that often secure particularly attractive salaries through collective agreements. The best-paid jobs in the skilled trades include:

• Electronics and mechatronics technician: Thanks to specialized skills and high demand, these professions are among the best paid.
• Bricklayers and carpenters: In the construction industry in particular, wages have risen due to the shortage of skilled workers.
• Automotive mechatronics technician: With increasing technologization and specialization in the automotive sector, these professions also offer good earning opportunities. Companies here also often pay salaries above the collective agreement.

Collective agreements ensure that these professions are generally bound to fair wage structures, which creates a secure basis for your career in the skilled trades.

Finding good skilled trades in Germany

Collective bargaining in Germany offers you as an employee many advantages: it creates transparency in salaries, offers protection through trade unions and makes your everyday work easier, as you don't have to constantly worry about individual negotiations. In the skilled trades in particular, collective bargaining ensures stable and secure working conditions.

If you are looking for a new job in Germany - whether in the blue-collar or grey-collar sector - WorkerHero is the ideal platform to find the right vacancies and better integrate yourself into the German job market. WorkerHero supports you on your way with helpful tips and current job offers!