Engineering salaries in Germany are high compared to most of western Europe.
The above is about great engineers who are holding themselves back. I have no doubt that those who are willing to not be in the union are also willing to leave the country leading to some brain drain, but many are also holding themselves back as well.
It is hard to tell if you are in a better or worse situation as a developer when you work in such a company. Many employees in such companies would like to have a 40-hour week, because that would result in higher pay. Unions, however, push to allow 40-hour weeks only to a small percentage of the workforce on the grounds that if the workload is higher, it should be compensated by new hires instead of overtime for existing employees, since more employees also means more union members and thus more power for unions.
What country are you talking about?
4.3 % pay increase for all employees in 2018, 2.0 % in 2017, 2.8 % in 2016, 2.2 % in 2014, 3.4 % in 2013, etc.
In addition, there are individually agreed salary increases depending performance.
[1] https://www.igmetall.de/ueber-uns/geschichte/die-tariferfolg...
So, there's big deficit of experienced engineers. German companies are trying to solve it by inviting Eastern European/Indian/Asian workers, that are cheaper, but that results in mediocre one staying and exploiting job security system and good ones moving to Switzerland/US or back to native country(where foreign experience can help them to get to higher managerial positions).