Collective agreements: DGB: 123 billion damage caused by “Tahrlucht”

In the event of a nationwide collective bargaining in Germany, the social security funds would take around 41 billion euros more in contributions every year according to calculations by the German Trade Union Confederation (DGB). This money escapes the social security institutions through “taplit and wage dumping”, the trade union association writes in a new brochure on the subject of the German Press Agency. The editorial network Germany (RND) previously reported about it.

“For the same reason, the federal government, the federal states and municipalities occupy around 24 billion euros less income tax,” said. On the basis of a special evaluation of the Federal Statistical Office, the DGB examined the number and merits of the employees not paid according to the tariff. Background: “Currently (…) only about half of all workers in Germany from collective agreements”, as the DGB states.

According to the DGB’s finding, millions of people had less in their pocket due to the lack of a collective agreement than would be the case with such a contractual basis: “With a falling tariff bond, their working conditions and income perspectives deteriorate.” Specifically, the DGB specialists calculated how high the additional income for income taxes and social security contributions would be a 100 percent collective bargaining. Then the entire social security deposits, tax revenues and the overall net were calculated and compared with the current situation in the collective bargaining bond.

Thousands of euros less wages per year

According to the DGB, the purchasing power of the working population also suffers from a lack of tariff binding. If there were valid for all collective agreements, the employees would have around 58 billion euros more per year in their wallets. On average, employees without a collective agreement according to the DGB have 2,891 euros net less than tariff employees annually. For employees in the east without a collective agreement, the DGB even gets an annual net minus of 3,451 euros.

“If you add up all costs, i.e. the lower income in the social insurance, the tax authorities and in the wallet of the employees, there is a damage of 123 billion euros per year,” said the union association. The “costs of the taplim” had slightly reduced from 130 billion euros compared to the previous evaluation of 2023. One reason: a “tentative” increase in tariff bond in some countries, as the DGB states.

“A high collective bargaining is not a hedge-up, but motor for economic growth-it strengthens internal demand and ensures good, sustainable work,” said DGB board member Stefan Körzell to the RND.

For the federal government, the Federal Government had launched a law for more collective bargaining in the cabinet in August. According to the plans, companies should pay their employees after collective bargaining conditions for public orders from the federal government.

Specifically, this means that you would have to grant a fee, Christmas bonus, vacation and rest periods as in industry -customary collective agreements. This would have better chances of orders than before. Competitive disadvantages of companies with a collective agreement compared to those without who can make cheaper offers are a central argument for the coalition to strengthen the tariff bond.