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The demise of a model? The state of collective bargaining and worker representation in Germany

Author

Listed:
  • John T Addison

    (University of South Carolina, USA; Durham University Business School, UK)

  • Paulino Teixeira

    (University of Coimbra, Portugal)

  • André Pahnke

    (Institut für Mittelstandsforschung (IfM), Bonn, Germany)

  • Lutz Bellmann

Abstract

This article investigates collective bargaining trends in the German private sector since 2000. Using data from the IAB Establishment Panel and the German Establishment History Panel, it provides both cross-sectional and longitudinal evidence on these developments. It confirms that the hemorrhaging of sectoral bargaining, first observed in the 1980s and 1990s, is ongoing. Furthermore, works councils are also in decline, so that the dual system also displays erosion. For their part, any increases in collective bargaining at firm level have been minimal in recent years, while the behavior of newly-founded and closing establishments does not seem to lie at the root of a burgeoning collective bargaining free sector. Although there are few obvious signs of an organic reversal of the process, some revitalization of the bargaining system from above is implied by the labor policies of the new coalition government.

Suggested Citation

  • John T Addison & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2017. "The demise of a model? The state of collective bargaining and worker representation in Germany," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 38(2), pages 193-234, May.
    • Handle: RePEc:sae:ecoind:v:38:y:2017:i:2:p:193-234
    DOI: 10.1177/0143831X14559784
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    Citations

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    Cited by:

    1. Oberfichtner Michael & Schnabel Claus, 2019. "The German Model of Industrial Relations: (Where) Does It Still Exist?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(1), pages 5-37, January.
    2. Rieder, André & Schnabel, Claus, 2025. "Beyond Collective Agreements: The Rise of the Wage Cushion in Germany," IZA Discussion Papers 18153, Institute of Labor Economics (IZA).
    3. Arnd Kölling & Claus Schnabel, 2022. "Owners, external managers and industrial relations in German establishments," British Journal of Industrial Relations, London School of Economics, vol. 60(2), pages 424-443, June.
    4. John Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2014. "Indicative and Updated Estimates of the Collective Bargaining Premium in Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(1), pages 125-156, January.
    5. Genz, Sabrina & Bellmann, Lutz & Matthes, Britta, 2018. "Do German Works Councils Counter or Foster the Implementation of Digital Technologies?," IZA Discussion Papers 11616, Institute of Labor Economics (IZA).
    6. Clément Brébion, 2021. "The works council wage premium in Germany: a case of strategic discrimination?," Working Papers halshs-03100169, HAL.
    7. Addison, John T. & Teixeira, Paulino & Stephani, Jens & Bellmann, Lutz, 2014. "Union Decline and the Coverage Wage Gap in Germany," IZA Discussion Papers 8257, Institute of Labor Economics (IZA).
    8. Claus Schnabel, 2025. "Unions and employers’ associations in Germany: a survey of their membership, density and bargaining coverage," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 59(1), pages 1-16, December.
    9. Luu, Trong Tuan & Rowley, Chris & Vo, Thanh Thao, 2019. "Addressing employee diversity to foster their work engagement," Journal of Business Research, Elsevier, vol. 95(C), pages 303-315.
    10. Verena Dill & Uwe Jirjahn, 2017. "Foreign owners and the quality of industrial relations in Germany," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 38(1), pages 5-25, February.
    11. John Addison & Paulino Teixeira & Jens Stephani & Lutz Bellmann, 2012. "Can German Unions Still Cut It?," GEMF Working Papers 2012-19, GEMF, Faculty of Economics, University of Coimbra.
    12. Addison, John T. & Teixeira, Paulino & Evers, Katalin & Bellmann, Lutz, 2012. "Is the Erosion Thesis Overblown? Evidence from the Orientation of Uncovered Employers," IZA Discussion Papers 6658, Institute of Labor Economics (IZA).
    13. Fackler, Daniel & Schnabel, Claus & Stegmaier, Jens, 2024. "Personnel adjustments during the Covid-19 pandemic: did co-determination make a difference?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58(1), pages 1-4.

    More about this item

    Keywords

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    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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