Heinz – Jozef TUSELMANN
International Business Unit
Manchester Metropolitan University
The paper examines the current tensions in the much debated German model of employee relations and especially the sectoral system of collective bargaining. It assesses how, if and to what extent the German model with its proven track record can accommodate the growing pressures for more decentralisation, differentiation and flexibility. Based on the experience of the reform process so far and talking into account the particularities of the German context, the article advocates a reform path within the parameters of the existing system in the form of centrally controlled decentralisation. This would strike a subtle balance between expanding the scope for company specific solutions whilst maintaining the benefits of the current system.
KEY WORDS: Germany, employee relations, collective bargaining, decentralisation, differentiation and flexibility.