Income with tariff: more money with fewer working hours

Income with tariff: more money with fewer working hours

IG Metall annually collects data from employees in the information technology and telecommunications industry and uses it to produce a pay analysis. Income is a synonym for the bulky term remuneration. For the current study, the income data of 41 employees were collected in 120 companies.700 employees identified. That’s quite a lot, and the result is initially not very spectacular: overall, there was very slight income growth for employees in the ITC industry last year. They were at 0.2 percent.

You can call that stable, or you can call it stagnant. After all, even in Corona times, industry associations such as Bitkom complain about a shortage of IT specialists. It doesn’t seem to be that big with this small salary increase.

Pay scale makes the difference

Far more remarkable is the difference between salaries in companies covered by collective bargaining agreements and those in companies without. These employees with collective bargaining agreements earn 14 percent more than those in companies without collective bargaining agreements. IG Metall explains that this is due to the positive effect of collective bargaining. A collective agreement is binding if the employer belongs to the employers’ association and the employee to the trade union that concluded the collective agreement.

Alternatively, the employer can also conclude a so-called house or company collective agreement with a trade union, to which it is then bound. In this case, the employee must be a member of the collective bargaining union in order for the collective agreement to apply to his or her employment relationship. Collective agreements regulate the rights and obligations of employees and employers, such as wages, salaries and working hours.

Because collective agreements are not only about money, but also about time, the IG Metall pay analysis also includes average weekly working hours. And here, too, employees with collective agreements fare better than those without. Two-thirds of employees with collective agreements work 37.5 hours or less. For employees without a collective agreement, the figure is just under 7 percent; all others work longer hours. More work for less money – this is how the situation can be summarized without a tariff.

Appeal to young people

Christiane Benner, second chairwoman of IG Metall, comments positively on the results of the survey for the union’s members: "The results of the survey once again confirm that employees in companies with collective bargaining agreements are better paid." This has come up again and again in the analyses of recent years. "It can be amed that young professionals in the IT sector will in future base their job decisions even more strongly on whether their employer is bound by collective bargaining agreements", Benner continues.

Collective agreements are not only the basis for better earnings, but also for better working conditions overall, such as family-friendly working hours. These statements by Benner are at the same time an appeal to young people to join IG Metall. The more members a union has, the more coarse its power, for example in collective bargaining.

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