Ten years after – Langzeiteffekte von ERA in der baden-württembergischen Metall- und Elektroindustrie

More than ten years ago a new framework collective agreement on wage determination (Entgeltrahmentarifvertrag ERA) was implemented in the metal and electrical industries. This article provides information on the long-term effects of the reform for the region of Baden-Wuerttemberg (Germany). The results are based on a survey which included all firms covered by collective bargaining. Questionnaires were directed at representatives of works councils and personnel managers; supplemental data was taken from the annual earnings survey conducted by the employers’ association Südwestmetall. The results show that the ERA agreement has a formative influence on wage differentiation at company level and still fulfills its intended regulatory function. There has been no creeping internal erosion of the wage structure agreement observed so far. ERA provides extended possibilities for determining performance-related pay; however, they are hardly used. Target agreements with reference to ERA play a certain role only in combination with appraisal of performance. The agreed system change in workload allowance is widely accepted and shows positive effects on reducing of workload.