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Wage Policy and Industrial Relations

This research unit covers a wide range of pay and industrial relations issues including incomes policy, corporate codetermination, the process of the wage finding and the roles of the parties involved.

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Industrial relations in Germany are characterised by a dual system of representation. While employees are involved in decision-making in their company, wage agreements are concluded for the sector as a whole. The principle of free collective bargaining charges the representatives of employees and employers with the task of establishing general conditions. The aim is to distribute market incomes in such a way as to secure social cohesion and acceptance of the free market economy on the one hand, while preserving incentives, on the other. At the establishment level, Germany’s democratic works constitution is based on the principle of codetermination by works councils and workers’ representatives on supervisory boards. As representatives of the workforce, works councils are endowed with a statutory role in determining working conditions.

Sections of the Research Unit

Wage Policy

The researchers analyse the wage policy from a national and international perspective. It includes the development of wages and labour costs. A special topic is the question of price competitiveness. This is covered by comparing unit labour costs, productivity and hourly labour costs in an international perspective.

Industrial Relations

Topics in this policy area include issues of the collective bargaining process and co-determination. The researchers analyse conflict intensity in collective bargaining, industrial action and social partner relations. Analytical reports on industrial relations, working conditions and restructuring in Germany are, for example, prepared for the European Foundation for the Improvement of Living and Working Conditions – a tripartite European Union Agency based in Dublin.

Cooperation Partners

  • European Industrial Relations Observatory (EIRO)
  • European Working Conditions Observatory (EWCO)
  • European Restructuring Monitor (ERM)
Hagen Lesch

Dr. Hagen Lesch

Head of the Research Unit Wage Policy and Industrial Relations

Tel+49 221 4981-778

Maillesch@iwkoeln.de

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Helena Schneider

Helena Schneider

Consultant for Wage Policy and Collective Bargaining

Tel+49 221 4981-665

Mailhelena.schneider@iwkoeln.de

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Christoph Schröder

Christoph Schröder

Senior Researcher for Income Policy, Wages and Working Time Policy

Tel+49 221 4981-773

Mailschroeder.christoph@iwkoeln.de

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Sandra Vogel

Dr. Sandra Vogel

Senior Researcher for Industrial Relations

Tel+49 221 4981-746

Mailsandra.vogel@iwkoeln.de

@San_Vogel

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An International Comparison of Unit Labour Costs
  • Christoph Schröder ·
  • IW-Trends ·
  • 17 Jan 2018

An International Comparison of Unit Labour Costs

In 2016 unit labour costs in German manufacturing continued high, with figures for the comparator countries averaging 12 per cent below the German level. At 6 percent, the Eurozone’s cost advantage over Germany was only half as high.

  • Hagen Lesch / Sandra Vogel / Hannah Busshoff / Adam Giza ·
  • IW-Analyse ·
  • 19 Dec 2017

Expanding collective bargaining coverage

Declining collective bargaining coverage in Germany has prompted a debate on how the trend could be reversed. However, this debate makes no distinction between the coverage and the autonomy of collective bargaining.

Results from the European Social Survey
  • Saskia Dieke / Hagen Lesch ·
  • IW-Trends ·
  • 5 Sep 2017

A European Comparison of Trade Union Membership Structures: Results from the European Social Survey

An analysis of data from the European Social Survey for 16 European countries shows that the degree of trade union organization currently ranges between just under 5 per cent in Hungary and 69.1 percent in Denmark.

Germany's response to the global financial and economic crisis
  • Hagen Lesch / Sandra Vogel / Paula Hellmich ·
  • Expertise ·
  • 5 May 2017

The state and social partners working together: Germany's response to the global financial and economic crisis

This paper is one of a series of studies commissioned by the International Labour Office. It examines the role of social dialogue and collective bargaining in facilitating the so-called “jobs miracle” in Germany, which saw a drop in unemployment during the peak years of the economic and financial crisis.

Unit labour costs shape international trade
  • Christoph Schröder ·
  • Interactive Graphic ·
  • 12 Apr 2017

Export performance: Unit labour costs shape international trade

Even Germany, as an export nation, has to compete for shares on its sales markets. The cost for businesses to manufacture goods plays a vital role in this process. This interactive graphic reveals the following: when unit labour costs increase in comparison to the competition, export performance generally declines.

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