Collective Bargaining Coverage in NRW Falls to 51%, Highlighting Wage and Policy Challenges

The NRW government faces criticism for delays in implementing promised labor reforms as wage disparities and economic impacts grow.

Collective bargaining coverage in North Rhine-Westphalia (NRW) has dropped from 82% in 1996 to just 51% in 2023, reflecting a nationwide trend.
Workers without collective agreements in NRW earn 8.5% less on average and work approximately 50 minutes more per week than their unionized counterparts.
Public sector employees in NRW enjoy 100% coverage, while sectors like arts and entertainment have as little as 11%.
The NRW government has yet to fulfill its promise to implement a 'Tariftreuegesetz,' which would prioritize collective bargaining compliance in public procurement.
The decline in collective bargaining agreements is estimated to cost Germany €130 billion annually in lost taxes and social contributions.