Qualified Differentiation Clauses In Collective Bargaining Agreements Are Invalid

The Federal Labour Court ruled by judgement dated 23 March 2011 (docket no. 4 AZR 366/09) that qualified differentiation clauses in collective agreements in the form of so-called "adjustment clauses" (Spannklausel) are invalid. Since August, the reasons for the judgement to this long-awaited decision of the Federal Labour Court have become available:
 
In the said case the parties to the litigation had concluded a collective agreement on the granting of a recuperation allowance of 260 euro per year, which was to be granted exclusively to union members (so-called simple differentiation clause). According to the collective agreement, should the employer grant amounts or benefits to non-union members corresponding to or exceeding this claim, the employer's payment to the union members should additionally increase accordingly (so-called qualified differentiation clause in the form of an adjustment clause).