In Germany, interaction between employers and employees is defined mainly by four players : the employers, the employers’ associations, the trade unions and the works councils are based on the Works Constitution Act and other statutory regulations.

The Employers and their Associations

In Bavaria, employers can either enter into agreements directly with employees, or contracts are concluded on the basis of collective agreements which are negotiated with the trade unions by the employers’ associations on behalf of their member companies.

In our line of business, we represent the collective economic, social and political interests of more than 80 percent of all companies with headquarters or subsidiaries in Bavaria. Our members come from the engineering industry, the electronics and electrotechnical industries, the optical industry, information technology and industries manufacturing other metal products.

Related and associated branches of the service sector such as marketing and telecommunications companies are also represented by bayme vbm.

The Trade Unions

The trade unions represent the interests of the employees and recruit their members directly from companies — regardless of whether a company is a member of vbm or bayme, or whether it applies the industry-wide collective agreement or not. The trade unions (e. g. IG Metall) are the negotiating party with the employers’ association vbm in collective bargaining.

The Works Council

A works council may be elected by employees at any time, regardless of whether a company is a member of an employers’ association or not. The works council has certain rights of participation and co-determination in personnel, social and economic matters.

It also represents the interests of the employees as regards the observance of labor legislation and collective and company agreements. bayme vbm advise its members on its dealings with the Works Council.