Collective agreement storm brewing
11. February 2014
Consequences of the change in case law on the principle of uniform collective agreements
“One firm – one collective agreement” – this was the catchphrase that applied in German collective bargaining law for many decades. But the traditional principle of uniform collective agreements within one company is now history. In its most recent decisions, the Fourth Senate, and on the basis of this the Tenth Senate, of the Federal Labour Court have departed from it. The consequences in practice are harsh. But does the change in court decisions really lead to the storm in the world of collective agreements referred to in the title?
In practice, companies will have to adapt themselves to the new legal position in every case. Particular attention will have to be paid to the law of industrial action. Now that more than one collective agreement may apply within one enterprise, this will have to be taken into account in assessing whether individual cases of industrial action are reasonable. We will have to wait and see whether the traditional limiting mechanisms are adequate in these circumstances or whether new legislation is needed.