In 2013, around 50% of employees worked in establishments which were considered a sectoral collective agreement. This is shown by data from the IAB Establishment Panel, an annual survey of more than 15,000 companies by the Institute for Labour Market and Employment Research (IAB).

Since 1996, when data for East and West Germany was first collected by the IAB, the number of employees bound by collective agreements has declined sharply. In 1996, in West Germany, 70% of employees worked under a sectoral collective agreement.

In 2013, the percentage for West Germany dropped to 52% while the figure for East Germany fell to 35%. Both figures were the lowest ever recorded for the regions since 1996.

“In the long term, the downward trend is clear, even if it has slowed in recent times” said IAB labour market researcher, Susanne Kohaut.

8% of employees in the West and 12% in the East were not covered by either an industry or a company collective agreement.