(de-news.net) – A group of experts and employer associations has issued a reform proposal for resolving collective labor disputes. Hagen Lesch, of the Institute of the German Economy, stated that ongoing debates about strengthening the ultima ratio principle through statutory arbitration mechanisms had been the prompt for exploring possibilities and limitations of arbitration in collective labor agreements. He highlighted that, by mid-2024, 50 arbitration efforts occurred in sectors with agreements, with 35 achieving immediate resolution — a 70% success rate overall, with a 80% success rate in the private sector.

Lesch emphasized that earlier recourse to arbitration could prevent labor conflicts. He noted the importance of invoking arbitration at the “right time,” thus varying depending on the specific context. Observations indicate that ad hoc arbitration often commences later than perpetual arbitration arrangements. Lesch remarked that arbitration is generally sought only after negotiations are officially declared unsuccessful, by which time disputes often escalate. He explained that rather than formally declaring negotiations to have failed, bargaining pressure is increasingly exerted through warning strikes, which in part serves to attract union members.

The proposed legislation aims to integrate arbitration agreements into a statutory framework. This might help to establish a universally applicable system, leading to a nationwide collective bargaining law.