Global Construction

The Understanding of the Arbitration Award for the Wage Round in the Construction Industry

Amelie Kohl
Amelie Kohl
Marketing Manager
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Published on 11th Oct 20245 min read

In the dynamic world of collective bargaining, the arbitration award plays a crucial role, especially in the construction industry. This regulation helps to resolve conflicts between employee representatives and employer associations. But what exactly does an arbitration award mean for the wage round and how does it affect the employees in the industry? This article provides a deep insight into the nature and significance of arbitration awards.

What is an arbitration ruling?

An arbitrator's decision is the final resolution of an arbitrator in collective bargaining negotiations, aimed at finding a compromise between the parties involved. In the construction industry, a sector characterized by intense labor demands and significant seasonal fluctuations, these decisions are particularly relevant.

Relevant aspects of the arbitrator's decision
  • Wage increases: A central point in many arbitration awards that directly affects the quality of life of employees.

  • Working hours and vacation days: Flexibility and balance are essential for employee retention and health.

  • Additional benefits: These can include further training, health benefits, and more.

  • Grandfathering provisions: These protect employees by ensuring they retain their previous higher salary in case of a wage reduction.

Importance of the Federal Framework Collective Agreement (BRTV)

The BRTV sets standard regulations in the construction industry, including wage structures. Section 3, item 1.4 of the BRTV, for example, regulates the compensatory period for the minimum wage, which plays an important role in negotiations.The BRTV applies to all of Germany, with the tariff areas West, East, and Berlin, and primarily covers the main construction industry.

Conclusion

The mediator's ruling in the wage round is an essential instrument in the construction industry that helps to ensure balance and fairness in collective bargaining. It is important that all parties understand this process and actively participate to achieve the best outcomes for both sides.

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