German Economic Institute
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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

Economist 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 Empirical Analysis Based on the IW Personnel Panel
  • Helena Schneider / Oliver Stettes / Sandra Vogel ·
  • IW-Trends No. 3 ·
  • 31 October 2019

Industrial Relations and Transformation Processes

As digitalisation of the economy and society as a whole progresses, fears have been expressed that this rapid and sometimes disruptive technological change might prevent works councils from adequately representing employees and their concerns to management.

The New Collective Bargaining Challenges
  • Hagen Lesch ·
  • IW-Trends No. 2 ·
  • 16 July 2019

Working Time Policy: The New Collective Bargaining Challenges

Working time issues are back on the collective bargaining agenda. On the one hand, employees are striving for more working time sovereignty, on the other, companies are having to be increasingly flexible in their response to their customers’ demands.

An International Comparison of Industrial Labour Costs
  • Christoph Schröder ·
  • IW-Trends No. 2 ·
  • 21 June 2019

An International Comparison of Industrial Labour Costs

In 2018, labour costs in German manufacturing were running at 41.0 euros per employee hour. This puts Germany in fifth place in the German Economic Institute’s comparison of labour costs in 42 countries and means that its costs are almost one-third higher than the average for industrialised countries.

Attitudes Towards Binding Collective Bargaining in the Metal and Electrical Industry
  • Hagen Lesch / Helena Schneider / Sandra Vogel ·
  • IW-Trends No. 1 ·
  • 20 March 2019

Results of a Company Survey: Attitudes Towards Binding Collective Bargaining in the Metal and Electrical Industry

A survey of 1,553 companies in the metal and electrical industry about their attitude to binding collective bargaining shows that two thirds of these firms are satisfied with their binding sector-level agreements.

Results of the IW Works Council Election Survey
  • Christian Kestermann / Hagen Lesch / Oliver Stettes ·
  • IW-Trends No. 4 ·
  • 5 February 2019

Works Council Elections 2018: Results of the IW Works Council Election Survey

Works councils traditionally have strong support among the workforces they represent. This is shown by the turnout in the 2018 works council elections, as established by a company survey conducted by the German Economic Institute (IW).

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