Working Life > Codetermination > Trade Union

Trade Union: Functions, Membership

Definition, Explanation

The trade union or labour union is an organization that cares for the interests of its members, the employees. It acts opposing the employers, that is, company directors, respectively stock owners.

The functions and services of a trade union include:

• Contracting of super-company collective agreements that are made for the trade union’s members but are actually applied even to non-member employees
• Negotiating with employers
• Organizing wage actions, e.g. strikes
• Advice and support in matters of labour law

Goals of a trade union:

• Put through higher wages
• Improve working conditions
• Regulate working hours, e.g. maxima of weekly hours, shift regulations, weekend and holiday work
• Codetermination in companies
• Maintain jobs

Representation of a trade union in companies:

• In companies with over 2,000 employees, there are trade union members in the board of directors, being the employees’ representatives
• Members of the trade union can be elected into works council

Organizational form of trade unions:

• as a registered association
• as occupational or professional associations
• as industry or company associations

Membership in a trade union:

• membership is voluntary
• contribution is normally 1 % of the pre-tax remuneration
• advantages of being a member in a trade union (may differ in individual unions):
  • legal entitlement of a member to be employed by the contracted collective agreement terms
  • Advice and information on working life topics, including dismissal, also during unemployment
  • Free-of-charge legal protection for disputes in working life, in unemployment, in case of problems with the social insurance
  • Support in strikes, during lockout and other measures imposed by the employer
  • qualification measures and further education in company matters and socio-political matters
  • Private accident insurance including accident hospital daily allowance, disablement compensation and death indemnification
  • special conditions on travels, car acquisition, insurances, telecommunication
  • lobby work for employees

Last update: 06/23/2010