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Oliver Stettes Expertise 28. February 2009 Wage flexibility and collective bargaining
Wage flexibility and collective bargaining
Oliver Stettes Expertise 28. February 2009

Wage flexibility and collective bargaining

German Economic Institute (IW) German Economic Institute (IW)

Variable payment schemes (VPS) are more widespread in banking and insurance than in other sectors, such as manufacturing. Irrespective of the sector concerned, however, profit-sharing, bonus and appraisal schemes do not, usually, refer to multi-employer agreements that govern other aspects of the remuneration system. Opening clauses, however, allow for the derogation of collective standards and/or the ability to make the level of bonuses contingent upon the firm’s performance. Whilst employers’ associations have, in general, called for the further extension of VPS within the framework of multi-employer collective agreements, unions are rather reluctant to replace regular wages, in part, by VPS.

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Proliferation of works councils and the desire for interest representation
Oliver Stettes IW-Report No. 1 19. January 2025

Proliferation of works councils and the desire for interest representation

Works councils exist in 7 per cent of the German establishments with five and more employees. The coverage rate has fallen significantly in the long run. Non-existence of works councils is, however, not equivalent to a lack of participation by the employees.  ...

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Helena Bach / Carolin Denise Fulda IW-Trends No. 3 23. September 2024

Collectively Agreed Wages as an Instrument for Recruiting Skilled Labour?

Companies are increasingly focussing their attention on the recruitment of skilled workers and thus facing the growing challenge of making their job advertisements as attractive as possible.

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