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The State of Collective Bargaining and Worker Representation in Germany: The Erosion Continues

Author

Listed:
  • Addison, John T.

    (Durham University Business School)

  • Bryson, Alex

    (University College London)

  • Teixeira, Paulino

    (University of Coimbra)

  • Pahnke, André

    (IfM Bonn)

  • Bellmann, Lutz

    (Institute for Employment Research (IAB), Nuremberg)

Abstract

This paper investigates trends in collective bargaining and worker representation in Germany from 2000 to 2008. It seeks to update and widen earlier analyses pointing to a decline in collective bargaining, while providing more information on the dual system as a whole. Using data from the IAB Employment Panel and the German Employment Register, we report evidence of a systematic and continuing erosion of the dual system. Not unnaturally the decline is led by developments in western Germany. Arguably, the path of erosion will continue until rough and ready convergence is reached with eastern Germany. Expressed differently, if the process of decentralization underpinning these developments once was ‘regulated’ it no longer appears to be so.

Suggested Citation

  • Addison, John T. & Bryson, Alex & Teixeira, Paulino & Pahnke, André & Bellmann, Lutz, 2010. "The State of Collective Bargaining and Worker Representation in Germany: The Erosion Continues," IZA Discussion Papers 5030, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5030
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    References listed on IDEAS

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    1. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2013. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(2), pages 182-209, May.
    2. Kohaut, Susanne & Schnabel, Claus, 2006. "Tarifliche Öffnungsklauseln : Verbreitung, Inanspruchnahme und Bedeutung," Discussion Papers 41, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    3. Anke Hassel, 1999. "The Erosion of the German System of Industrial Relations," British Journal of Industrial Relations, London School of Economics, vol. 37(3), pages 483-505, September.
    4. Streeck, Wolfgang, 2001. "The transformation of corporate organization in Europe: An overview," MPIfG Working Paper 01/8, Max Planck Institute for the Study of Societies.
    5. Kohaut Susanne & Schnabel Claus, 2003. "Tarifverträge – nein danke!? Ausmaß und Einflussfaktoren der Tarifbindung west- und ostdeutscher Betriebe / Collective Agreements - No Thanks!? Extent and Determinants of Firms’ Bargaining Coverage in," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(3), pages 312-331, June.
    6. John T. Addison & Claus Schnabel & Joachim Wagner, 2006. "The (Parlous) State of German Unions," Working Paper Series in Economics 23, University of Lüneburg, Institute of Economics.
    7. Kohaut, Susanne & Ellguth, Peter, 2010. "Tarifbindung und betriebliche Interessenvertretung: Aktuelle Ergebnisse aus dem IAB-Betriebspanel 2009," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 63(4), pages 204-209.
    8. Anke Hassel, 2002. "The Erosion Continues: Reply," British Journal of Industrial Relations, London School of Economics, vol. 40(2), pages 309-317, June.
    9. Kohaut, Susanne & Ellguth, Peter, 2008. "Tarifbindung und betriebliche Interessenvertretung: Aktuelle Ergebnisse aus dem IAB-Betriebspanel 2007," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 61(9), pages 515-519.
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    Citations

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    Cited by:

    1. Schnabel Claus, 2016. "United, Yet Apart? A Note on Persistent Labour Market Differences between Western and Eastern Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 157-179, March.
    2. Fitzenberger Bernd & Sommerfeld Katrin, 2016. "A Sequential Decomposition of the Drop in Collective Bargaining Coverage," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(1), pages 37-69, February.
    3. John T. Addison & Paulino Teixeira & Alex Bryson & André Pahnke, 2013. "Collective Agreement Status and Survivability: Change and Persistence in the German Model," LABOUR, CEIS, vol. 27(3), pages 288-309, September.
    4. Uwe Jirjahn, 2015. "Research on Trade Unions and Collective Bargaining in Germany: The Contribution of Labor Economics," Research Papers in Economics 2015-10, University of Trier, Department of Economics.
    5. Gabriel Felbermayr & Andreas Hauptmann & Hans-Jörg Schmerer, 2014. "International Trade and Collective Bargaining Outcomes: Evidence from German Employer–Employee Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(3), pages 820-837, July.
    6. Bellmann, Lutz & Gerner, Hans-Dieter & Hübler, Olaf, 2013. "Investment under Company-Level Pacts," IZA Discussion Papers 7195, Institute of Labor Economics (IZA).
    7. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2015. "Pacts for Employment and Competitiveness as a Role Model? Their Effects on Firm Performance," GEMF Working Papers 2015-18, GEMF, Faculty of Economics, University of Coimbra.
    8. 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).
    9. John Forth & Alex Bryson & Anitha George, 2016. "Explaining Cross-National Variation in Workplace Employee Representation," DoQSS Working Papers 16-10, Quantitative Social Science - UCL Social Research Institute, University College London.
    10. Addison John T. & Teixeira Paulino, 2019. "Workplace Employee Representation and Industrial Relations Performance: New Evidence from the 2013 European Company Survey," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(1), pages 111-154, January.
    11. Addison, John T. & Teixeira, Paulino & Evers, Katalin & Bellmann, Lutz, 2015. "Pacts for Employment and Competitiveness as a Role Model? Their Effects on Firm Performance," IZA Discussion Papers 9323, Institute of Labor Economics (IZA).
    12. 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.
    13. Barry T. Hirsch, 2012. "Unions, dynamism, and economic performance," Chapters, in: Cynthia L. Estlund & Michael L. Wachter (ed.), Research Handbook on the Economics of Labor and Employment Law, chapter 4, pages 107-145, Edward Elgar Publishing.
    14. Uwe Jirjahn, 2013. "Der Beitrag der Arbeitsmarktökonomik zur Erforschung von Gewerkschaften und Tarifvertragsbeziehungen in Deutschland," Research Papers in Economics 2013-03, University of Trier, Department of Economics.
    15. Paul Ryan & Uschi Backes-Gellner & Silvia Teuber & Karin Wagner, 2012. "Apprentice pay in Britain, Germany and Switzerland: institutions, market forces, market power," Economics of Education Working Paper Series 0075, University of Zurich, Department of Business Administration (IBW).
    16. 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.

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    More about this item

    Keywords

    erosion of the dual system; collective bargaining/works council coverage; eastern and western Germany; institutional transitions; permanent stayers; newly-founded firms; closing/failing firms;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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