Abstract
Social partnership – seen from abroad
Stephen Silvia, Professor at the American University, Washington DC, has managed to paint a convincing picture of labour relations in Germany, from their beginnings in the late 19th century up to present times.
The author stresses the importance of established traditions and the stability of institutions giving the system its ability to stand up to economic crises and political change. At the same time, he highlights the learning ability of the stakeholders, allowing them to adapt to changes in the overall socio-economic situation. In doing so, the book successfully interweaves structural history and event history.
It is interesting to see what an American observer finds particularly striking. It is the role of the state, not interfering in the current relations between trade unions and employers, while at the same time giving them a solid framework for negotiating working conditions. In the view of Silvia, the German state plays a larger role than generally accepted. He sees it as acting in an extremely stabilizing manner, ensuring free collective bargaining via framework laws, facilitating co-determination at workplace and board level, using a multi-level system of labour courts to enforce the binding nature of collective agreements, and upholding the principle of proportionality when industrial action is taken. The fact that both trade unions and employer organizations have certain exclusive rights such as a bargaining, strike and lock-out monopoly reduces the system’s vulnerability. The system is – in the words of Silvia – ‘grounded in law’ and affords ‘representatives statutory protection’ (page 44).
Silvia's second observation highlights the system’s adaptability. Though trade unions and employer organizations are to a certain extent protected, they are not immune to internal depletion and the emergence of competing organizations. Both have to stem themselves against losing members, explaining their constant efforts to innovate. This is reflected for instance by unions merging to form ‘multisectoral unions’. Silvia attaches key importance to the fact that the issues covered by collective agreements have been expanded and compacted, listing ‘three substantial changes’ (pages 212–214):
Compensation framework agreements providing standardized criteria for setting the wages of blue- and white-collar workers, including such aspects as training, qualifications and responsibility.
Opening clauses allowing management and works councils to derogate from collective agreements in order to secure employment and regain competitiveness. Silvia refers to this as ‘controlled decentralization’, as both trade unions and employer associations have to authorize such company-specific derogations.
Collective agreements on working-time accounts allowing overtime to be ‘parked’ on an employee account and used at a later date for additional leave, for training or for early retirement.
Such ‘big changes’ (page 214) prompt Silvia to describe trade unions and employer organizations as innovative organizations, facilitating stability and renewal concurrently.
Silvia rightly sees his hypotheses confirmed through Germany's ‘crisis corporatism’ (page 171) reaction to the worldwide financial crisis. Against the background of a 25 per cent drop in demand in the industrial sector, trilateral agreement was reached: ‘The social partners exchanged wage moderation for employment guarantees’ (page 218). The government launched an ambitious recovery programme, while at the same time subsidizing wage losses caused by widespread short-time working. The image of the trade unions in the eyes of the government and the public at large was greatly boosted. The strategy turned out to be a great success. The industrial sector in Germany, and with it countless suppliers from Spain to central and eastern Europe, have mastered the crisis, securing employment and strengthening purchasing power.
It comes as no surprise that Silvia's summary is exuberant: The German labour relations system ‘can respond effectively in an emergency’ (page 225). The crisis has strengthened cooperation between trade unions, employers and the government. ‘Germany was again a model’ (page 225). This is a completely different picture to that painted by a number of left-wing authors who see Germany’s social market economy being destroyed by neoliberalism and who make Germany and its social partners co-responsible for the misery in southern Europe. The knowledge built up through his long-term observations prompts Silvia to reject such opinions, and it is interesting to see that observers from abroad with in-depth knowledge of German history and circumstances arrive at similar conclusions. The Italian scholar Angelo Bolaffi from Rome’s La Sapienza University for instance sees the German model of co-determination and social partnership as a role model for Europe, stating that Germany and its trade unions should take on more responsibility in Europe. Stephen Silvia does not go that far, instead pointing out that European integration and the globalization of the economy and politics could undermine the German model.
The book is a great asset for German readers, as Silvia, looking at Germany from abroad, is able to describe in an incomparable manner the specific features of German labour relations. Readers from other countries will benefit from a book allowing them better to understand German labour relations.
Translation from the German by Richard Lomax