Employment in the natural resources sector
Compared to the 2016 reporting period (1st D-EITI report), the sector employed about 7,007 fewer workers, mainly due to the phasing out of hard coal mining by the end of 2018.
Employment under the mandatory social security scheme by economic sector
Persons employed under the manda- tory social security scheme as of the reporting date on 31 December 2019
No. of apprentices among these employees
Mining and quarrying in total; including:
Coal mining (lignite and hard coal)
Extraction of crude oil and natural gas
Quarried natural resources, other mining products
Services for mining and quarrying
Source: Federal Employment Agency 2019. For detailed source information see footnote 44
* For reasons of data protection and statistical confidentiality, numerical values of 1 or 2 and data from which such numerical values can be mathematically deduced are made anonymous.
The role of legislation
The German economic system is characterised by the interaction of free market activity and State social policy. However, a pronounced social partnership also exists – especially in the natural resources sector – and it can be used to balance existing differences of interest between employers and employees.
In principle, German legislation regulates a uniform (minimum) level of protection for employees (e.g., working hours, holidays, protection against dismissal, protective rights for young people, pregnant women and severely disabled persons, as well as safety and health at work, etc.). Above this level of protection and within the framework of their collective bargaining autonomy guaranteed by Article 9(3) of the German Constitution, the social partners are free to regulate working conditions independently for the particular company or the respective sector.
The statutory social security system provides protec- tion against life risks such as unemployment, illness, the need for care, accidents, occupational disease and support in old age. Persons employed under the man- datory social security scheme are covered by social insurance; the self-employed are partially covered by this protection. Social insurance benefits are mainly financed by equal contributions from employees and employers. One exception to this, however, is statutory accident insurance, which is financed exclusively by the employer. Tax revenue is also used for financing in some segments of social insurance. The insurance companies are self-governing and guarantee the participation of the social partners.
The role and cooperation of the social partners
One of the main pillars of the social market economy in Germany is co-determination, i.e. the right of em- ployees and their representatives to participate in operational or business decisions. The scope and form of co-determination differ according to the company’s size, legal form and industry.
Company Co-Determination is regulated in the Works Constitution Act, which states that an elected works council has participation rights in economic, personnel and social matters. In principle, a works council can be set up in every company in Germany with at least five employees. A central instrument in works council work is company agreements, which – like collective agreements – are legally-binding agreements between the employer and the works council and regulate the employment relationship of the employees. Frequent topics are company regulations on working hours, data protection, health promotion, work safety and further training, all of which are tailored to the conditions prevailing in the company.
Vocational training in Germany is essentially provided through the dual vocational training system, in which training takes place in parallel at two places of learning. The trainee concludes a training contract with the company and learns the necessary practical skills and competences on the job. The second pillar of the sys- tem is the vocational school, which provides general and job-related theoretical knowledge. The duration of the training depends on the profession involved and varies between 2 and 3.5 years. During this time, the trainee receives a training allowance from the company. The successful completion of the course qualifies the candidate to directly exercise his or her profession as a qualified specialist.
The average paid weekly working time was 40.2 hours, which was relatively high compared to the manufacturing industry as a whole.
The principle of equality between men and women applies in Germany. This principle also applies to wage determination and it means that gender pay gaps in particular must be further reduced. The Act on the Promotion of Pay Transparency between Women and Men has been in force since 2017 (Act on the Promotion of Pay Transparency). This continues the principle of equal pay (equal pay for women and men for equal work and work of equal value) which is al- ready standardised in the General Equal Treatment Act (AGG) and includes an individual right to informa- tion for employees, reporting obligations for large companies and the request to large private employers to carry out company audits of the pay structure. The average gross monthly earnings of women in the extractive industry was EUR4,315, which amounts to 92.6% of the male employees’ earnings (EUR4,662) and is thus above the average ratio of 83% in the manufacturing industry as a whole.
Diversity and equal opportunities
Different life experiences and work horizons of employees make a significant contribution to the economic success of companies. By consciously pro- moting diversity, companies can tap into an important success and competitive factor that has a positive impact on both companies and their workforces.
Diversity can be measured by a number of quantita- tive indicators, such as the proportion of women in all workforces and management, the proportion of for- eign workers and the age structure of the workforce.
At 62% the 25 to under 55 age group represented by far the largest proportion of the workforce, followed by the 55 to under 65 group at 29.7%. 7.2% of the employees were in the under 25 group, while 11% were over 65.
Climate policy and structural change
The subjects covered in the Commission’s compre- hensive dialogue were the requirements of climate policy, security of energy supply and competitiveness. This social consensus on the use of coal was confirmed in July 2020 by the German Bundestag and Bundesrat and was subsumed in the Act to Reduce and End Coal-Fired Power Generation (Kohleverstromungs- beendigungsgesetz – KVBG). A societal compromise was thus achieved.
Coal mining and coal-fired electricity generation are usually located in structurally-weaker regions and account for a considerable proportion of industrial value added in these areas. One industrial job creates around two more jobs in the regional, industry-related or service sector.
The amount of compensation payments are deter- mined directly by the parties affected in the case of an agreement under private law; it is only in rare cases when expropriation/a surface lease is required that it is undertaken by the authorities after valuation by an expert. It can be examined by a court. The agreement on the path to phase out lignite influences the exten- sion and adaptation of opencast mines. New buildings envisaged for infrastructure purposes can be dispensed with, if applicable.
The sites of the former hard coal power plants receive funding within the scope of the Structural Strength- ening of Coal Regions Act. Here up to EUR1 billion is planned by 2038. In addition, up to EUR90 million is being earmarked for the Helmstedt site. The Alten- burger Land district is receiving up to EUR90 million from the budget for the central German coalfield.
In order to cushion the social impact of phasing out coal, the Federal Government followed the recom- mendations of the Commission for “Structural Change, Growth and Employment” and also intro- duced an adaptation payment. This makes it easier for older employees to take early retirement.
German companies are closely integrated into global supply and value chains. As a result, they bear a special responsibility to address the conditions under which natural resources are mined and to combine economic success with social justice and ecological compatibility, not only on a national level but also internationally. This is particularly true in international mining, which can be associated with high human rights, social and environmental risks. Legislation, the Federal Govern- ment and companies are meeting these challenges at several levels.
The National Action Plan (NAP) of the Federal Gov- ernment for the implementation of the UN Guiding Principles on Business and Human Rights contains a broad catalogue of measures for the protection of human rights. For the first time, the German govern- ment has also anchored the responsibility of German companies to respect human rights in the action plan.
On 11 June 2021 the Supply Chain Due Diligence Law (LkSG) was passed by the German Bundestag. The LkSG is closely aligned with the regulations in NAP and the core elements of corporate due diligence it contains. The LkSG is intended to protect human rights and improve certain environmental concerns in supply chains. From 2023 the law will apply to com- panies with 3,000 employees or more and from 2024 it will apply to companies with more than 1,000 em- ployees with their registered office or branch office in Germany.
For the first time, binding due diligence obligations for EU importers above certain thresholds of tin, tan- talum, tungsten, their ores and gold (3TG) from con- flict and high risk areas have now been introduced with the so-called Conflict Minerals Regulation (EU) 2017/821). The Regulation is aimed at preventing that the proceeds from the sale of these minerals are used to finance armed conflicts. It provides for numerous due diligence obligations with which importers of 3TG must comply from 1 January 2021. The national implementing law that came into force on 7 May 2020 will ensure the effective application of the Conflict Minerals Regulation in Germany.
The reporting requirements for companies in connec- tion with their corporate responsibility (often referred to as Corporate Social Responsibility (CSR)) have been increased. The CSR Directive Implementation Act, which implements the EU CSR Directive (2014/95/ EU) into national legislation, obliges companies – and especially large capital-market-oriented companies with more than 500 employees – to report on key environmental, labour and social issues, respect of human rights and on anti-corruption measures. In April 2021 the EU Commission published a proposal to revise these reporting obligations – the “Corporate Sustainability Reporting Directive (CSRD)” – which makes provision, among other things, to extend re- porting obligations to all large capital-market oriented companies under balance sheet law (exclusion: microenterprises).
1 Federal Employment Agency (2019): Employment by economic sector (WZ 2008) – Germany, West/East and States (quarterly figures) – December 2019. URL: https://statistik.arbeitsagentur.de/SiteGlobals/Forms/Suche/Einzelheftsuche_Formular.html?nn=627730&topic_f=monatsbericht-monatsbericht (Accessed on 26 November 2021).
2 The employment impact varies between 94 and 2.66 in the individual sectors. Hillebrand, Elmar; Hans-Böckler Foundation (publisher) (2016): Sectoral analysis of the raw materials industry (Branchenanalyse Rohstoffindustrie). Study No. 315, Berlin, p. 71. URL: https://www.boeckler.de/pdf/p_study_ hbs_315.pdf (Accessed on 26 November 2021).
3 p. 62
4 as well as in the “iron and steel-producing industry”
5 Coal and Steel Co-Determination Act (MontanMitbestG). URL: https://www.gesetze-im-internet.de/montanmitbestg/MontanMitbestG.pdf (Accessed on 26 November 2021).
6 Supplementary Co-Determination Act (MontanMitbestGErgG). URL: https://www.gesetze-im-internet.de/montanmitbestgergg/MontanMitbestGErgG. pdf (Accessed on 26 November 2021).
7 One-Third Participation Act (DrittelbG). URL: https://www.gesetze-im-internet.de/drittelbg/BJNR097410004.html (Accessed on 26 November 2021).
8 Federal Office of Statistics (2018): Negotiated wages, tariff commitment URL: https://www.destatis.de/DE/Themen/Arbeit/Verdienste/Tarifverdien- ste-Tarifbindung/_inhalt.html#sprg262570 (Accessed on 26 November 2021).
9 Federal Employment Agency (2019): Employment by economic sector (WZ 2008). Phase
10 Recognised vocational qualification’ is the sum of ‘with recognised vocational training’ and ‘master craftsman/technician/equivalent technical college degree’.
11 Academic degree’ is the sum of ‘Bachelor’, ‘Diploma/Magister/Master/State Examination’ and ‘Doctorate’.
12 Federal Employment Agency (2019): Employment by economic sector (WZ 2008).
13 Federal Office of Statistics (2020): Specialised publication 16, series 3. Earnings and labour costs. Employees’ earnings 2020, p. 6. URL: https://www. destatis.de/DE/Themen/Arbeit/Verdienste/Verdienste-Verdienstunterschiede/Publikationen/Downloads-Verdienste-und-Verdienstunterschiede/ arbeitnehmerverdienste-jahr-2160230207004.pdf? blob=publicationFile (Accessed on 26 November 2021).
15 Federal Employment Agency (2019): Employment by economic sector (WZ 2008).
16 Federal Government (2019): Report of the Federal Government on the representation of men and women at management levels and in the supervisory bodies of the private sector and civil service. URL: http://dipbt.bundestag.de/doc/btd/18/133/1813333.pdf (Accessed on 1 December 2021).
17 5 § 1 AGG. URL: https://www.gesetze-im-internet.de/agg/ (Accessed on 1 December 2021).
20 Final Report of the Commission for Growth, Structural Change and Employment
21 Lausitz mining region (Federal States: Brandenburg/Saxony), Central German mining region (Saxony/Saxony Anhalt/Thuringia), Rhenish mining region (North Rhine-Westphalia), Helmstedt mining region (Lower Saxony)
23 STARK stands for “Stärkung der Transformationsdynamik und Aufbruch in den Regionen und an den Kohlekraftwerkstandorten” (Strengthening the
transformation dynamics and development of coal mining regions).