Germany
Background information on industrial relations in Germany
- 28 Dec 2000
Germany: 2000 Annual Review for Germany<#PDF_LINK>This record reviews 2000's main developments in industrial relations in Germany.
- 28 Dec 2000
Germany: DAG, DPG and HBV delegates support foundation of unified service sector union<#PDF_LINK>In November 2000, three of the five German trade unions - DAG, DPG and HBV - seeking to found a Unified Service Sector Union (Ver.di) held extraordinary congresses, at which a great majority of delegates approved the merger. As the IG Medien media union had already voted in favour in September, it is now up to the Public Services, Transport and Traffic Union (ÖTV) to decide whether the merger will take place in March 2001.
- 28 Dec 2000
Germany: HBV opt-out prompts trade union debate on national Alliance for Jobs<#PDF_LINK>At an extraordinary congress held in November 2000, the HBV commerce, banking and insurance workers' trade union decided to opt out of Germany's national tripartite Alliance for Jobs. Following the IG Medien media union, HBV was the second affiliate of the DGB confederation to take this step. However, the three largest DGB affiliates - the metalworkers' IG Metall, the chemical workers' IG BCE and the public sector workers' ÖTV - declared that they will continue to work within the Alliance.
- 28 Dec 2000
Germany: New agreement clarifies organisational responsibilities between DGB affiliates<#PDF_LINK>In November 2000, the German Federation of Trade Unions (DGB) and the German White-Collar Union (DAG) reached an agreement on guidelines for cooperation between DGB-affiliated unions after the forthcoming establishment of a new Unified Service Sector Union (Ver.di) and the consequent integration of DAG into DGB. The deal seeks to clarify the responsibility for organising particular sectors and companies between DGB affiliates, in particular in "new" sectors such as telecommunications, information technology and media and culture.
- 28 Dec 2000
Germany: Equality group seeks to include women's interests in national Alliance for Jobs<#PDF_LINK>In early 2000, the Hans Böckler Foundation launched a new women's forum, the "Equality Group", with the aim of promoting the inclusion of women's interests in Germany's national tripartite "Alliance for Jobs, Training and Competitiveness". The background is that the great majority of participants in Alliance meetings are men and that women's interests or gender aspects are seen as having have been ignored in the documents published to date. With more than 200 women working in eight working groups on different topics by December 2000, the Equality Group may be able to raise awareness of women's interests. The question of whether this will influence the policies of the Alliance for Jobs remains open.
- 28 Nov 2000
Germany: New agreements signed for journalists<#PDF_LINK>In September and October 2000, new collective pay agreements were reached for journalists and freelancers on German newspapers, as well as for editorial staff on magazines. Decisions concerning partial retirement and the status of online editors were postponed to a later date.
- 28 Nov 2000
Germany: Working-life time accounts agreed in steel industry<#PDF_LINK>In October 2000, Germany's first sectoral agreement on "working-life time accounts" was signed in the steel industry. The agreement essentially offers employees the possibility of saving overtime pay over a long period by paying it into an account. This money can be used to finance a period of time off, or for early retirement or an additional pension. The concrete details of the agreement will be worked out at company level.
- 28 Nov 2000
Germany: Protestant Church awards prize to companies for good employment policies<#PDF_LINK>In October 2000, the Protestant Church in Germany awarded the "Arbeit Plus 2000" prize to eight companies, in recognition of their good employment policies and their role in designing and securing jobs and supporting employees' interests.
- 28 Nov 2000
Germany: Creation of unified service sector union suffers setback at ÖTV congress<#PDF_LINK>In November 2000, the congress of Germany's Public Services, Transport and Traffic Union (ÖTV) failed to give sufficient support for the trade union's participation in the foundation of a new Unified Service Sector Union (Ver.di). About one-third of the delegates expressed criticism of the current conditions for the planned merger of five unions to create Ver.di. ÖTV will take its final decision on the issue at an extraordinary congress in March 2001, where the support of at least 80% of delegates will be required to approve the merger.
- 28 Nov 2000
Germany: New law passed on part-time work and fixed-term employment contracts<#PDF_LINK>In November 2000, the German parliament passed a new Act on part-time work and fixed-term employment relationships. Among other provisions, the new law introduces a right for workers in companies with more than 15 employees to reduce their working time, as long as no internal company reasons prevent such a reduction, and restricts the possibilities for concluding fixed-term employment contracts.
- 28 Oct 2000
Germany: New agreement signed for west German textiles industry<#PDF_LINK>In September 2000, the social partners in the west German textiles industry signed a new collective agreement, thereby averting an imminent industrial dispute. After four unsuccessful rounds of negotiations, the IG Metall union had announced strike ballots and industrial action if the employers did not comply with union demands for an improved wage settlement and regulations on partial retirement.
- 28 Oct 2000
Germany: IG Medien to opt out of national Alliance for Jobs<#PDF_LINK>At an extraordinary congress held in September 2000, the IG Medien media workers' trade union decided to opt out of Germany's national tripartite Alliance for Job. It was the first affiliate of the DGB union confederation to take this step.
- 28 Oct 2000
Germany: New company agreements signed at Volkswagen AG<#PDF_LINK>In September 2000, the collective bargaining parties at Volkswagen AG in Germany concluded new company agreements which provide for pay increases, as well as an extension of existing agreements on bonus systems, supplementary pensions and partial retirement.
- 28 Oct 2000
Germany: IG Metall launches fair share campaign for fairer wealth distribution<#PDF_LINK>In October 2000, the IG Metall metalworkers' union launched a "fair share" campaign, aimed at initiating a broad public debate on the distribution of wealth and poverty in Germany. For IG Metall, the principal goal of this debate should be the development of new concepts for an active distribution policy, guaranteeing all citizens "equal participation rights" through a fairer distribution of wealth.
- 28 Oct 2000
Germany: Joint statement by German, Irish, Spanish and UK unions on EU consultation Directive<#PDF_LINK>In the run-up to the EU Employment and Social Policy Council meeting on 17 October 2000, trade union confederations from Germany, Ireland, Spain and the UK issued a joint statement calling on their governments to support the draft Directive on national information and consultation arrangements. In the event, the Council discussed the proposal and referred it for further debate.
- 28 Sep 2000
Germany: DGB and BDA demand study of the economy in schools<#PDF_LINK>In August 2000, Germany's main trade union and employers' confederations, DGB and BDA, joined with other groups in calling for the economy to be made a subject on the school curriculum. The social partners want students to be taught about a variety of work- and business-related topics, reflecting the growing importance of the economy and world of employment for people's lives.
- 28 Sep 2000
Germany: German and Austrian food sector unions sign cooperation deal<#PDF_LINK>In August 2000, German and Austrian trade unions in the food, hotel and restaurants sector signed a cooperation agreement, which includes mutual recognition of union membership.
- 28 Sep 2000
Germany: Doorn group holds fourth annual meeting<#PDF_LINK>In September 2000, the "Doorn group" of trade unions from Belgium, Germany, Luxembourg and the Netherlands held their fourth annual meeting. The unions jointly evaluated the results of the 2000 pay bargaining rounds in the four countries, in the context of the "coordination formula" that they had agreed two years previously, whereby they should seek pay settlements that correspond to the sum total of increases in prices and in labour productivity. Furthermore, the unions decided to improve their cooperation on non-wage bargaining issues, such as working time and continuing training.
- 28 Sep 2000
Germany: Draft bill discussed on equal opportunities in the private sector<#PDF_LINK>In September 2000, the German government presented the outline of a draft bill on equal opportunities between men and women in the private sector. It is proposed that, within a specified period, enterprises should establish company-specific plans to promote women's employment. If enterprises make no efforts in this direction, legal regulations would come into force.
- 28 Aug 2000
Germany: IG Metall signs collective agreements for Autostadt theme park<#PDF_LINK>In June 2000, the Autostadt theme park opened at Wolfsburg, the headquarters of Volkswagen, the German motor manufacturer. The IG Metall metalworkers' trade union had already signed collective agreements for the service workers to be employed at the park, thus ensuring that they are covered by collectively agreed minimum pay and conditions.
- 28 Aug 2000
Germany: Pay dispute resolved in retail sector<#PDF_LINK>After collective bargaining in the German retail trade had dragged on for some weeks, a collective agreement signed in Bavaria on 13 July 2000 brought the dispute between trade unions and employers' associations to an end. Subsequently, the basic guidelines of the Bavaria settlement - a relatively high pay increase and a supplementary pensions scheme - were followed in other bargaining regions.
- 28 Aug 2000
Germany: Pension reform plans strongly opposed<#PDF_LINK>In September 2000, the German government will present a draft bill on pensions reform. At the core of the planned reform is a dual pension scheme, consisting of both state and private pensions, with employees obliged to pay 4% of their gross income into company or other private schemes. The government's aim is to respond to future increases in the number of pensioners and decreases in the number of people in employment. By encouraging private pension schemes, employers' and employees' contributions to state retirement pensions, which make up a considerable proportion of non-wage labour costs, are to be stabilised at a maximum level of 22% of pay (shared equally by employers and employees). Trade union criticisms centre on the fact that the reform will put an end to the principle whereby employers and employees pay equally for retirement pension provision. Women's groups argue that the reform will have negative consequences for women, while many critics fear that the changes will increase poverty among older people.
- 28 Aug 2000
Germany: Employers and trade unions oppose xenophobia and right-wing extremism<#PDF_LINK>In summer 2000, a new series of violent attacks against foreigners sparked a broad public debate on how to tackle the problem of xenophobia and right-wing extremism in Germany. Both employers' associations and trade unions have been very much involved in this debate, emphasising the need to fight against extreme right-wing tendencies at the workplace.
- 28 Jul 2000
Germany: Interim report on 2000 collective bargaining round<#PDF_LINK>In July 2000, the WSI research institute presented an interim report on Germany's 2000 collective bargaining round. The study evaluates collective agreements concluded in the first half of 2000, affecting about 57% of all employees covered by an agreement. The average increase in wages and salaries will be around 2.3% in 2000 - significantly lower than the average increase of 3.0% recorded in 1999, but still higher than the 1.8% increase in 1998.
- 28 Jul 2000
Germany: New provisions on parental leave and childcare payments<#PDF_LINK>In July 2000, the German parliament adopted new provisions on parental leave and childcare payments. For the first time, both parents are allowed to take parental leave at the same time and have the right to work part-time during this period. Furthermore, the number of families which are entitled to receive childcare payments will increase.
- 28 Jul 2000
Germany: Alliance for Jobs agrees to support vocational training and lifelong qualification<#PDF_LINK>In July 2000, leading representatives of the German federal government, trade unions and employers associations met officially for their sixth round of top-level talks within the National Alliance for Jobs, Training and Competitiveness. In the run-up to the meeting, several topics were excluded from the agenda with the result that its outcome was not satisfactory for the participants. Nevertheless, they agreed to promote vocational training, to compensate overtime work with "vouchers" instead of money and to introduce "job-rotation".
- 28 Jun 2000
Germany: Rail workers' union to be renamed TRANSNET<#PDF_LINK>In May 2000, the advisory board of the German Rail Workers' Union (GdED) decided to rename the trade union "TRANSNET". The new name aims both to reflect changes in the union's field of organisation and to open new opportunities for international cooperation.
- 28 Jun 2000
Germany: Unions and churches oppose extension of stock exchange trading hours<#PDF_LINK>Following changes to the Working Time Act in 1998, the German stock exchange will now be opening on four public holidays a year, beginning with Ascension Day on 1 June 2000. Trade unions and churches oppose this extension, arguing that public and religious holidays should be protected. Daily trading hours are also being extended.
- 28 Jun 2000
Germany: New collective agreements signed in printing and paper processing<#PDF_LINK>In May 2000, trade unions and employers' organisations in the German printing and paper processing sectors concluded new collective agreements on wage increases and partial retirement.
- 28 Jun 2000
Germany: Last-minute compromise over new agreements averts strike in public sector<#PDF_LINK>In June 2000, the bargaining parties in the German public sector concluded new collective agreements for about 3.1 million employees. A compromise was reached just before the trade unions were ready to call a strike, after more than two months of controversial negotiations and the failure of joint dispute resolution. The new agreements provide for: wage increases in two stages over 31 months; the adjustment of east German pay levels from 86.5% to 90% of west German levels by 2002; and new provisions on partial retirement and the promotion of vocational training.
- 28 Jun 2000
Germany: Social fund and extension of jobs pact agreed at Deutsche Bahn<#PDF_LINK>In June 2000, the German rail workers' trade union TRANSNET and the board of Deutsche Bahn AG agreed to an extension of the company's "pact for jobs" until the end of 2004 and to a new social fund to finance extra payments for staff, linked to the railway company's privatisation and reorganisation.
- 28 May 2000
Germany: Moderate wage deal agreed for insurance sector<#PDF_LINK>On 3 May 2000, a new collective agreement was signed for the German insurance sector, providing for moderate pay increases. The DAG and HBV trade unions, which had been unable to agree with one another over bargaining in the banking sector in January 2000, negotiated the insurance deal through a joint collective bargaining commission.
- 28 May 2000
Germany: New collective agreements signed in west German construction<#PDF_LINK>At the end of March 2000, the collective bargaining parties in the west German construction industry concluded new collective agreements regarding pay increases, additional pension schemes, partial retirement and the fight against illegal employment on building sites.
- 28 May 2000
Germany: Federal government gives financial support for pilot projects on subsidising low wages<#PDF_LINK>From summer 2000 the German federal government will be giving financial support to pilot projects in four federal states, providing wage subsidies for long-term unemployed people and those with a low level of qualifications. This puts into practice a decision of the tripartite national Alliance for Jobs. Two different models for subsidising low wages will be tried out, based on the recommendation of a group of social scientists. Although these new low-wage models are hotly contested within the trade unions, the DGB union confederation has expressed initial support for the pilot projects.
- 28 May 2000
Germany: Working time report presented to Alliance for Jobs<#PDF_LINK>In May 2000, Germany's tripartite national Alliance for Jobs discussed a report on working time policy drawn up by the group of social scientists which assists the Alliance's work. The report emphasises that working time policy plays an important role in labour market reform, and states that flexible working time - and in particular the increased use of working time accounts - offers various opportunities both to maintain and create jobs and to meet individuals' demands for further training, childcare or early retirement.
- 28 Apr 2000
Germany: Innovative industrial action succeeds at Foxboro Eckardt<#PDF_LINK>After the management of the Foxboro Eckardt technology company announced major workforce reductions at its Stuttgart site in Germany in January 2000, the works council organised successful resistance against these plans by using innovative forms of industrial action, such as demonstrations at the stock exchange and a "virtual demonstration" on the internet.
- 28 Apr 2000
Germany: German multinationals agree codes of conduct with unions<#PDF_LINK>In March 2000, two German-based multinationals - Faber-Castell (writing, drawing and painting products) and Hochtief (construction) - signed framework agreements on the worldwide observance of fundamental social standards with the International Federation of Building and Wood Workers and the relevant German trade unions.
- 28 Apr 2000
Germany: Strike over job losses at Deutsche Bahn averted - for now<#PDF_LINK>In March 2000, German Railways (Deutsche Bahn AG) announced plans for a massive reduction of jobs. The plan almost provoked a strike, but this was averted at the last moment by an agreement to cut costs without a further reduction of personnel. Nevertheless, it soon became obvious that the agreement has not solved the basic problems, but has only guaranteed social peace for the present.
- 28 Apr 2000
Germany: Ford EWC and management sign pioneering agreement on Visteon employees<#PDF_LINK>In January 2000, the management and European Works Council (EWC) at Ford signed an agreement regulating the conditions to apply to employees of Visteon, Ford's components operation, in the event of it becoming independent. This is thought to be the first time that an EWC has been accepted by the management of a multinational company as a bargaining partner in this way.
- 28 Apr 2000
Germany: Agreements in chemicals and metalworking shape 2000 bargaining round<#PDF_LINK>In March 2000, the collective bargaining parties in Germany's chemicals and metalworking sectors concluded new collective agreements on pay increases and partial retirement. Both agreements received very positive reactions and were widely regarded as a success for the national Alliance for Jobs.
- 28 Apr 2000
Germany: DGB greets Lisbon summit targets<#PDF_LINK>Prior to the extraordinary European Council summit on employment, economic reform and social cohesion, held in Lisbon in March 2000, Germany's DGB trade union confederation published a statement agreeing with the overall line of the Council's proposed decisions. While DGB merely sought some amendments to the targets to be set by the summit, the chair of the BDA employers' confederation rejected the idea of quantitative EU targets as instruments of an overly centralised economic policy. Meanwhile, in the run-up to the Lisbon Council, DGB had already presented a set of proposals for German employment policy in 2000.
- 28 Apr 2000
Germany: Working times in service sector differ considerably<#PDF_LINK>In March 2000, the five German trade unions which are to unite to form a new Unified Service Sector Union held a conference on working time. In connection with the event, the WSI Collective Agreement Archive evaluated collective agreements in the 10 most important service sectors with regard to their regulations concerning working time. The survey shows that collectively agreed working times differ considerably.
- 28 Mar 2000
Germany: Overview of trade union demands for 2000 bargaining round<#PDF_LINK>In the first two months of the 2000, most German trade unions set out their demands for the year's collective bargaining round. The unions demanded total increases of between 4% and 5.5%, including both pay rises and financial contributions to new arrangements for partial and early retirement.
- 28 Mar 2000
Germany: HBV accepts banking agreement<#PDF_LINK>In late February 2000, four weeks after the German White-Collar Workers' Union (DAG) and the Commerce, Banking and Insurance Union (HBV) disagreed on an agreement for the banking sector concluded between DAG and the employers, HBV finally decided to accept the whole package. Nevertheless, HBV announced that it is still opposed to Saturday work.
- 28 Mar 2000
Germany: Rubber industry deal includes early retirement scheme<#PDF_LINK>In February 2000, the IG BCE trade union and the employers' association for the German rubber manufacturing industry signed a set of collective agreements for the sector's 30,000 employees. A cornerstone of this deal, which could set an example for the whole 2000 bargaining round, is a new scheme for partial and early retirement, combined with a job-creation agreement.
- 28 Mar 2000
Germany: German and Japanese unions agree joint statement on international economic policy coordination<#PDF_LINK>A joint meeting of the German and Japanese trade union confederations, DGB and RENGO, in February 2000, resulted in a joint statement on international economic policy coordination, in which the unions set out concrete proposals and demands for a social and democratic re-regulation of the world economy.
- 28 Mar 2000
Germany: Mannesmann agrees on friendly takeover by Vodafone<#PDF_LINK>After a three-month takeover battle between the UK-based Vodafone AirTouch and the German Mannesmann AG, the latter finally agreed to a "friendly takeover" in February 2000. Vodafone declared that it would fully respect the corporate culture of Mannesmann, including the employees' co-determination rights.
- 28 Mar 2000
Germany: Volkswagen presents plan for 5,000 new jobs<#PDF_LINK>In late 1999, personnel management at Volkswagen AG presented a new plan for the creation of 5,000 new jobs. In a pilot project at two production sites in Lower-Saxony, new van models are to be produced with a new system of work organisation. The central themes of this new project are teamwork and performance-linked working time, and a fixed monthly pay of DEM 5,000. On the whole, the IG Metall trade union and the Volkswagen works council welcomed the proposal and the possibility of creating additional jobs. At the same time, however, they fear that the plan might undermine the existing company agreement.
- 28 Mar 2000
Germany: Work permits for computer experts cause controversy<#PDF_LINK>In March 2000, the German federal government decided to issue 10,000 limited work permits, with a duration of one to five years, for non-EU foreign experts in the information technology sector. By calling these work permits "green cards" and drawing a parallel with the USA, the government has added to the controversy of the debate on bringing specialists from abroad to work in Germany. The discussion concentrates not only on the obvious questions - such as whether there are enough (unemployed) specialists in Germany, or what consequences for social standards might arise from employing foreign workers - but also on the general question of whether Germany needs general immigration legislation.
- 28 Feb 2000
Germany: Dispute between DAG and HBV unions over banking agreement<#PDF_LINK>The German White-Collar Workers' Union (DAG) and the Commerce, Banking and Insurance Union (HBV) were not able to sign a common collective agreement for private sector banking in January 2000. While DAG accepted the employers' offer and signed the deal, HBV objected to the provisions concerning Saturday working. HBV has not ruled out the possibility of a strike over the issue.
- 28 Feb 2000
Germany: DGB suspends participation in talks on Baden-Württemberg regional alliance on employment<#PDF_LINK>In January 2000, the regional organisation of Germany's DGB trade union confederation decided to suspend its participation in talks over a tripartite regional "alliance for work and employment" in Baden-Württemberg, on the grounds of a perceived lack of initiative on the part of state government and the allegedly unbending attitude of the employers' associations. DGB's further collaboration was made dependent on bilateral top-level talks with the prime minister of Baden-Württemberg.
- 28 Feb 2000
Germany: Main employers' and business associations demand changes in Collective Agreement Act<#PDF_LINK>In February 1999, Germany's main employers' and business associations made demands for a redefinition of the "favourability principle" set out in the Collective Agreement Act. According to the employers, it should be legally possible for companies to diverge from collective agreements in order to safeguard or promote employment. At the same time, the liberal FDP party presented a comprehensive draft for an amendment of the Collective Agreement Act to the German parliament. Trade unions, however, have sharply rejected any attempts to change the legal foundations of the German system of collective bargaining.
- 28 Feb 2000
Germany: Pay increases lag behind overall economic development<#PDF_LINK>According to a study published by the WSI research institute in late 1999, Germany saw only moderate pay increases in the 1990s, while at the same time there was an almost steady decline in employment.
- 28 Feb 2000
Germany: Employers demand new labour market policy<#PDF_LINK>In January 2000, the Confederation of German Employers' Associations, BDA, published a paper calling for fundamental changes in labour market policy. These proposals are aimed mainly at reducing jobseekers' allowances and restricting job-creation measures, with the aim of placing greater pressure on unemployed people to enter the labour market. The DGB trade union confederation rejects these proposals, arguing that it is not the amount of benefits but the lack of jobs which hinders unemployed people from finding new jobs.
- 28 Feb 2000
Germany: Majority of managers doubt usefulness of Alliance for Jobs<#PDF_LINK>In February 2000, a survey conducted by the business newspaper Handelsblatt indicated that three out of five German managers saw no sense in continuing the national tripartite Alliance for Jobs, after the trade unions had announced their claims for the 2000 collective bargaining round. Although the majority of the managers questioned have negative assumptions about the outcome of the forthcoming bargaining round, they clearly see the development of overall economic framework conditions in a positive light and expect an overall growth in investments and employment in the coming months.
- 28 Jan 2000
Germany: Company rehabilitation agreement signed at Philipp Holzmann AG<#PDF_LINK>In November 1999, it became public that Germany's second-largest construction group, Philipp Holzmann AG, had immense debts which put the company on the brink of insolvency. As part of a comprehensive rescue package, the Holzmann group works council has agreed on an employees' contribution to the costs of the company's reorganisation. An initial agreement between the group works council and the Holzmann executive board, however, was sharply criticised by both the IG BAU construction workers' trade union and the construction employers' associations for contravening collective agreements. In January 2000, IG BAU and Holzmann management finally signed a "company rehabilitation agreement", under which all employees would work five additional hours per week for a period of 18 months without extra payments. Whether or not this agreement will come into force remains unclear, since the construction employers' associations have so far not supported it.
- 28 Jan 2000
Germany: New company agreement signed at Jenoptik AG<#PDF_LINK>After more than 15 months of negotiations and disputes, the management of Jenoptik AG, the major east German technology firm, and the IG Metall and DAG trade unions signed a new company agreement in December 1999.
- 28 Jan 2000
Germany: Alliance for Jobs adopts joint statement on employment-oriented bargaining policy<#PDF_LINK>In December 1999 and January 2000, Germany's tripartite "Alliance for Jobs" held new top-level talks which concentrated mainly on collective bargaining policy. In a joint statement, the Alliance concluded recommendations for the 2000 collective bargaining round. The subsequent announcement of the social partners' bargaining demands, however, has suggested that the Alliance's statement is based on an insubstantial compromise, while trade unions and employers' associations continue to have relatively opposed views on what constitutes an employment-oriented collective bargaining policy.
- 28 Jan 2000
Germany: Unions oppose OECD collective bargaining proposals<#PDF_LINK>In December 1999, the OECD presented its latest report on the situation of the German economy. Overall, the economy is assessed positively, especially with regard to the long-term viability of the federal government's budget, but the greatest obstacle to increased employment, growth and the attainment of environmental aims is considered to be a lack of labour market flexibility. According to the OECD, one step towards further flexibility would be to replace sectoral collective agreements with plant-level agreements. This demand met with strong resistance from the DGB trade union confederation.
- 28 Jan 2000
Germany: New restructuring plans highlight problems of railway reform<#PDF_LINK>In a letter sent to employees in mid-January 2000, the chair of the board of Deutsche Bahn (DB) AG announced his plans for restructuring the German national railway company. Under the proposals, DB Reise & Touristik and DB Regio, the subsidiaries responsible for regional and long-distance passenger transport respectively, would be merged in order to establish a single subsidiary for passenger transport, which could improve cooperation between different lines. At the same time, the company is to be made ready for stock-market flotation in 2004, with priority given to the reduction of personnel costs. The GdED railworkers' trade union fears that this could lead to a loss of 70,000 jobs and that the range of public rail services will be reduced dramatically.
- 28 Jan 2000
Germany: Court rules against linking award of public sector contracts to observance of collectively agreed wages<#PDF_LINK>Since 1995, the Berlin Senate has awarded public contracts in the road-building sector only to companies which declare that they pay wages according to the collectively agreed rates for Berlin. On 18 January 2000, Germany's Federal Supreme Court ruled against this practice, arguing that it infringes the law on both collective agreements and competition. The reactions of the social partners and legal experts to this decision differed considerably. The final judgment will be made by the Federal Constitutional Court and is likely to influence a recent proposal by the government to make the promotion of women's employment a condition in the award of public sector contracts.