Adidas to stop using collective bargaining in Germany, angering union

Adidas, the world’s second-largest sportswear manufacturer, will no longer participate in collective bargaining agreements at its home base in Germany, a spokeswoman confirmed to dpa on Thursday.

“We can confirm that we have switched to a membership in the employers’ association without collective bargaining obligations,” the spokeswoman.

Adidas justified the move by pointing to a lack of flexibility in the collective bargaining framework.

“Our employees are the best in the industry. To ensure this remains the case, we need to be able to offer salaries outside a collective structure and provide attractive development opportunities for all employees — both within and outside collective agreements,” the company stated.

Adidas further argued that demands for more pay grades, which would significantly expand collective bargaining coverage to other employee groups, would reduce this flexibility.

Additionally, the company’s major IG BCE trade union had demanded bonuses for union members, which Adidas said were non-negotiable in the interest of all employees.

However, the company assured that any wage increases negotiated in the collective bargaining round would still apply to the 4,600 employees covered by collective agreements at Adidas in Germany.

Union criticizes Adidas’ decision

The IG BCE trade union sharply criticized the decision, calling it “grossly unsporting.”

“With this withdrawal from the collective bargaining community, Adidas is abandoning the path of social partnership and fair play,” said IG BCE Deputy Chairwoman Birgit Biermann.

“Employees will now be entirely at the mercy of management’s will when it comes to the development of their wages and working conditions. We will not accept this,” she announced.

Adidas now belongs to a small minority in the DAX 40, which lists the largest German companies trading on the Frankfurt Stock Exchange, that have opted out of collective bargaining agreements.

The union dismissed Adidas’ justification as “complete nonsense,” arguing that the new regulation would have brought various benefits for employees not covered by collective bargaining agreements, including regulated working hours and paid overtime.