What does a software engineer actually earn? The question sounds simple, but the answer is not so simple. It depends.

Our software engineer is well off if he works in a company with a collective agreement. His average monthly salary is then 15 % higher compares to  a company without a collective agreement.

Incidentally, even if a company is bound by a collective agreement, employees only have a binding legal claim to the collectively agreed benefits if they are members of the trade union that concluded the collective agreement.

Big effect
The figures show how great the effect of collective agreements is for the individual. Jörg Hofmann, former First Chairman of IG Metall, puts it this way: "Equal pay for equal work: the prerequisite is and remains collective bargaining. It is the number one issue of fairness." IG Metall will therefore work hard to "increase the collective bargaining coverage of companies and employees year after year".

The positive effects of collective bargaining coverage are not limited to financial matters. Employees with a collective agreement are also far better off in many other respects than their colleagues without a collective agreement.

Working hours
48 hours per week - this is the maximum weekly working time allowed on a long-term average. This is regulated by the Working Hours Act. In sectors without collective agreements, working hours are often 40 hours or more per week. In the metal and electrical industry, for example, the average working week is 35 hours in the old federal states and 38 hours in the new federal states.

Vacation and vacation pay
The statutory vacation entitlement for a 5-day week is only 20 days per year. Employees with a metalworkers' collective agreement are entitled to 30 days, plus around 70 percent of a month's salary as vacation pay.

Christmas bonus
77% of employees with a collective agreement receive a Christmas bonus, but only 42% of employees without a collective agreement.

Women
The so-called pay gap - i.e. the amount that women earn on average less than men - is significantly smaller in companies with collective agreements than in those without.

Apprentices
Being taken on after training: This prospect gives many trainees peace of mind. In the metal and electrical industry and in the steel sector, permanent employment is guaranteed by collective agreement, provided there is a company procedure in place. If this is not the case, trainees are taken on for 12 months.

In collective bargaining, IG Metall has repeatedly pushed through special rules for trainees: For example, that travel costs to vocational school are covered, training allowances increase disproportionately or that there are days off before exams.

 
Temporary work
Employees working for temporary employment agencies receive supplements in many IG Metall sectors. The industry supplements reduce the pay gap that often exists with the permanent workforce.

For temporary workers employed in the metal and electrical industry, IG Metall has also agreed in the "Temporary and agency work" collective agreements: Companies must offer temporary workers a permanent job after 24 months of deployment at the latest. Companies must also negotiate with the works council if they wish to use temporary workers.

Education
Many professions are becoming increasingly demanding. IG Metall provides employees with better training opportunities. There are also collective agreements on in-company training. The 2015 collective bargaining round also saw the introduction of part-time training. Metal and electrical employees can now take time off if they want to continue their education or study. The return to full-time employment is guaranteed.

Partial retirement
Flexible transitions into retirement - that's what many people want. The IG Metall employee survey revealed that only a third of people believe they will be able to work until the statutory retirement age. With collective agreements from IG Metall, many employees can go into partial retirement, for example in the metal, electrical and steel industries with their physically demanding jobs.

 
Fairness and transparency
In a company without a collective agreement, bosses can decide at will who earns how much. This often leads to injustice: two employees in the same position who do the same amount are nevertheless paid differently. With a collective agreement, pay is clearly regulated and transparent.

Tip: When looking for a job, it is worthwhile for employees to check whether companies are bound by collective agreements. And if there is no collective agreement in a company, this does not have to be a permanent situation. Active workforces can fight for a collective agreement. Advice and assistance is available from the IG Metall offices.