Collective bargaining coverage in Germany remains weak: according to a study by the Institute for Economic and Social Research (WSI) of the Hans Böckler Foundation, only 49 percent of employees work in companies bound by collective agreements. This places Germany in the middle of the European pack, far behind leaders such as Italy and Belgium, which have 100 percent coverage. The rate has been declining for years.
The EU Minimum Wage Directive requires member states with collective bargaining coverage below 80 percent to submit an action plan promoting collective negotiations. The deadline expired at the end of 2025. Germany is one of six EU countries that have not yet complied – alongside Croatia, Luxembourg, Slovenia, Hungary, and Cyprus.
The authors of the WSI study criticize that despite the commitment by the Union and SPD in their coalition agreement to increase collective bargaining coverage, no plan has been presented. The federal government had asked unions and employer associations to submit proposals. After a summit meeting in November 2025, no agreement was reached.
The Federal Ministry of Labor and Social Affairs stated that the National Plan to Promote Collective Bargaining (NAP) is still being coordinated within the government. No concrete timeline for submission to the European Commission was given.
Source: Tagesschau
