In this paper I will first of all give an overview about the general labour relations between employers and employees and the intermediary institutions especially for Germany. Furthermore reasons of the radical changes in this relation will be worked out in chapter 3. The main focus is set on the high unemployment rate and its impacts concerning the position of the employers. Finally there will be a discussion how these changes will impact upon the function of Human Resource Departments in large and medium size corporations and a statement about the future development.
Table of Contents
1. Introduction
2. General labour relations in Germany
2.1. Labour union “Gewerkschaft”
2.2. Works Concil “Betriebsrat”
2.3. Employers’ Association “Arbeitgeberverband”
3. Present Situation in Germany – Problems and Changes
3.1. Decreasing importance of the labour union
3.2. The “Ich AG”
3.3. Temporary employment agencies and private labour agencies
3.4. Works Councils
3.5. Relocation abroad
3.6. Rescue Companies and “5000*5000”
4. Consequences for Human Resource Departments
5. Opinion about the future
Research Objective and Core Topics
This paper examines the evolving landscape of labour relations in Germany, specifically focusing on how high unemployment rates and economic pressures have shifted the power dynamic between employers and traditional employee institutions, ultimately necessitating a strategic realignment of Human Resource Management functions.
- Analysis of German labour relations: Unions, Works Councils, and Employers' Associations.
- Impact of rising unemployment on collective bargaining and union influence.
- Rise of alternative employment models like "Ich AG" and temporary staffing.
- Strategic pressure on Human Resource Departments regarding cost reduction and flexibility.
- Globalisation and the trend of corporate relocation to reduce production costs.
Excerpt from the Book
3.1. Decreasing importance of the labour union
The big German labour union (DGB) which was founded in 1849 is fighting now for more than 150 year for the rights of the employees. The DGB now consists of the following members who operate in the several branches: IG-Bauen-Agrar und Umwelt, IG-Bergbau Chemie, Gewerschaft Erziehung und Wissenschaft, IG-Metall, Gewerkschaft Nahrung Genuß Gaststädten, Gewerkschaft der Polizei, Tanset, Verdi.
Great effort has been made in the last centuries to improve the conditions of employment and German employees reached one of the highest standards and minimum wages in the world. Through hard negotiations and even strikes the DGB used their power to reach their targets. As a representative of millions of workers they even influenced the political development. Employees seem to get more and more into a weaker position concerning the negotiations about the working conditions. The question to be answered is why this especially in the last 20 years got more and more obvious. One of the most important reasons can be found in the steady increasing unemployment-rate. From earlier 0,7 % in 1970 the rate rose to even 12,7 % in 1997. To illustrate this development a figure is given in the following.
Summary of Chapters
1. Introduction: This chapter outlines the paper's scope, addressing labour relations, current economic challenges in Germany, and the resulting impact on Human Resource departments.
2. General labour relations in Germany: This section defines the three core pillars of the German labour market: Labour Unions, Works Councils, and Employers' Associations.
3. Present Situation in Germany – Problems and Changes: This chapter analyzes the decline of traditional labour power, examining factors like the "Ich AG", outsourcing, relocation, and innovative but restrictive project-based employment agreements.
4. Consequences for Human Resource Departments: This section discusses how HR functions must shift from traditional administrative tasks toward supporting organizational flexibility and managing a non-traditional workforce.
5. Opinion about the future: The final chapter provides a outlook on continued globalization and the necessity for more flexible labour laws to maintain economic competitiveness.
Keywords
Labour Relations, Germany, Human Resource Management, Labour Union, Works Council, Employers' Association, Unemployment, Ich AG, Temporary Employment, Outsourcing, Globalization, Labour Market, Wage Agreements, Dismissal Protection, Cost Reduction
Frequently Asked Questions
What is the primary focus of this research?
The paper examines how radical changes in the German labour market—driven by high unemployment and economic restructuring—have impacted the traditional balance of power between employers and labour institutions.
Which key institutions of the German labour market are discussed?
The author analyzes the roles and interactions of labour unions ("Gewerkschaften"), works councils ("Betriebsräte"), and employers' associations ("Arbeitgeberverbände").
What is the central research question?
The research explores why employees have been losing negotiating power over the last 20 years and how this shift affects the core functions and responsibilities of Human Resource Departments.
Which scientific approach does the author use?
The author uses a qualitative analytical approach, combining structural definitions of institutions with a case-study based analysis of current economic trends and specific corporate examples.
What aspects of HR departments are covered in the main body?
The study covers the transition of HR from administrative tasks like recruitment and wage accounting to broader strategic responsibilities involving cost management, outsourcing, and dealing with non-traditional workforce models.
Which core keywords define the paper?
Key terms include Labour Relations, Human Resource Management, Labour Union, Works Council, Globalization, and the "Ich AG" employment model.
How does the "Ich AG" model specifically threaten traditional labour power?
The "Ich AG" (one-person company) allows companies to outsource tasks to individuals who are not covered by union protections, minimum wage regulations, or dismissal laws, thereby weakening collective influence.
What does the Siemens AG case example demonstrate?
It illustrates the pressure companies place on domestic labour relations by threatening to relocate production facilities abroad to reduce labour costs by up to 25%.
What significance do "Auffanggesellschaften" have in the study?
These "rescue companies" are presented as mechanisms used by large corporations like Opel to circumvent standard wage agreements and reduce employee headcount during restructuring.
- Quote paper
- Nils Merkel (Author), 2005, Human resource management: Impact of changes in German labour relations, Munich, GRIN Verlag, https://www.grin.com/document/56782
