Asked by Emily Walsh on Jun 17, 2024
Verified
What is sector bargaining and how is it important to German labor relations? How is sector bargaining changing in response to the pressures of globalization?
Sector Bargaining
Collective bargaining that occurs at an industry or sector level, involving multiple employers and aimed at establishing common terms and conditions of employment across that sector.
Globalization
The method through which companies or various entities gain global influence or begin to function on a worldwide level.
- Investigate and distinguish the systems of labor relations operative in countries like Canada, the U.S., France, Japan, Great Britain, Mexico, Germany, Australia, the Soviet Union, and China.
- Understand industry-specific labor relations practices, including sector bargaining and its evolution.
Verified Answer
RN
Robert NealeJun 22, 2024
Final Answer :
Germany's labor relations system relies on two important mechanisms: codetermination and sector bargaining. Each major industry or sector has a dominant employer association and union and these two organizations engage in "sector bargaining" that results in a contract that covers the entire industry. Sector bargaining takes place at the regional level but is coordinated by the national union and thus pattern bargaining is common. Basic agreements on wages, pay structures, working time, and working conditions are negotiated and can be extended to other companies by the government. Contracts cover about 65% of workers and are legally enforceable. Strikes are illegal during the life of the contract. Globalization has increased pressure for decentralization of contracts and thus more companies are negotiating independently with unions, rather than through the employer association.
Learning Objectives
- Investigate and distinguish the systems of labor relations operative in countries like Canada, the U.S., France, Japan, Great Britain, Mexico, Germany, Australia, the Soviet Union, and China.
- Understand industry-specific labor relations practices, including sector bargaining and its evolution.
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