Political parties' manifesto proposals on employment and industrial relations

Source: Parties’ election manifestos.

Industrial relations

In its manifesto, the SPD still relies on the German system of collective bargaining autonomy and association-level agreement s between trade unions and employers' associations at sector level, while the CDU/CSU wants to to enlarge the scope for company agreements and works agreements below the association level. During its term of office, the red-green government has modified some legislation regulating industrial relations, in order to fight 'pseudo self-employment' (TN0205101S) and to strengthen the position of work councils (DE0107234F), and CDU/CSU wants to repeal these amendments. The FDP goes a step further and calls for massive deregulation and liberalisation of industrial relations and employment law. For example, it wants to relax protection against dismissal and the rules on fixed-term employment relationships. Furthermore, FDP suggests the elimination of essential parts of the German industrial relations system, calling for: the abolition of the system of extending sector-level collective agreements to firms not directly covered by the agreements; and restricting the social partners at sector level to bargaining over general conditions, leaving much more space for company bargaining. By contrast, PDS wants to broaden co-determination rights and strengthen the rights of trade unions, for example by providing better legal conditions for strikes and making the extension of collective agreements easier.

Only the SPD mentions that it will continue to support the national tripartite Alliance for Jobs, Vocational Training and Competitiveness (Bündnis für Arbeit, Ausbildung und Wettbewerbsfähigkeit), which was launched and strongly supported by the red-green government at the beginning of its term of office (DE9812286N).

Two political parties, the Greens and the CDU/CSU, call for financial participation by employees in firms.

In the area of vocational training, all parties want to make further improvements to the current dual system of practical training provided and paid for by employers, and theoretical and general training provided in public vocational training schools. The SPD aims to reinforce vocational training by introducing regionally-based occupational counselling and forecasting instruments to avoid unemployment caused by a mismatch between labour supply and demand. The CDU/CSU suggests splitting training into modules. FDP agrees with this approach and also seeks the documentation of qualifications attained, in order to create a more flexible system with greater choice. In order to share training costs equally, PDS calls for a levy to be paid by all firms that do not participate in the training of trainees but profit from trained employees.

Labour market

For the SPD and the Greens, an active labour market policy (including job creation schemes) is still necessary, particularly in eastern Germany. The PDS also strongly supports an active labour market policy. However, for the CDU/CSU and FDP active labour market policy is not a priority and could be reduced.

All political parties advocate better training and a more effective placement service for unemployed people, but they differ on the ways to get them into work and provide social security cover. In order to provide incentives for taking low-paid jobs, the SPD intends to combine unemployment assistance and social assistance without lowering the level of social payments. It also wants to improve social security for 'non-typical' employment relationships. According to the CDU/CSU, low-paid jobs could be created mainly through wage subsidies, lowered social security contributions or the relaxation of regulations on fixed-term employment and temporary agency work. It too proposes that unemployment assistance and social assistance should be merged into a single social benefit, adding that employees should have to show their ability to work - otherwise their benefits would be reduced. The FDP argues along similar lines. In order to improve incentives to take up employment, it proposes the pooling of unemployment assistance and social assistance. If recipients of social assistance cannot prove their ability to work, their benefits should be cut. Furthermore, charges on income and the taxation of low incomes should be reduced.

Instead of unemployment assistance and social assistance, the Greens and the PDS prefer the concept of a 'basic income', including not only adults but also children, which would provide a level of income above the social assistance level. The two parties' proposals on how to create new jobs are rather different: The Greens’ list of job-creation instruments includes wage subsidies, promotion of part-time work, a reduction in overtime working, job rotation and job-sharing; PDS wants to reduce the statutory maximum weekly working hours from the current 48 to 40, in order to restrict overtime.

Employment policy

Budget consolidation is a central element of the SPD's employment policy. According to the SPD, this will stabilise price levels, allowing the European Central Bank (ECB) to focus more on growth, opening the way for public investment, and reductions in taxation and deficits at the national level. To promote this approach, the SPD promotes coordination between the ECB, and the EU social partners and national governments.

The Greens' employment policy is based on tax reductions for small and medium-sized firms and a decrease in non-wage labour costs. Budget consolidation is seen as the basis for price stability, sound 'aggregate conditions' and room for public investment.

The CDU/CSU is campaigning for cuts in taxes and social security expenditure and a reduction in the ratio of government expenditure to GDP. On the European level, it aims to maintain the EU Stability and Growth Pact and the independence of the ECB.

Similarly, the FDP is demanding reductions in taxes, deficits and the ratio of government expenditure to GDP. Additionally, it wants more privatisation of currently public tasks and a comprehensive and rapid liberalisation of EU markets.

For the PDS, an increase in public investment is more important than budget consolidation. Such public investments, combined with an active wage policy and a just tax policy, would strengthen domestic demand. With reference to EU Economic and Monetary Union (EMU), the PDS wants to enhance the current convergence criteria by adding social criteria. The ECB’s competences should not only involve price stability, but also growth and employment.

Gender policy

All political parties want to reduce gender inequality, but they make differing proposals to realise this aim. An important factor in achieving equality is easing the childcare burden on parents and especially women. The parties' manifestos contain proposals on better childcare, 'full-time' schools and 'family-friendly' working time. The Greens want to pay parents earnings-replacement benefits (as occurs in Sweden), while the PDS suggests more publicly provided childcare.

In 2001, the red-green government adopted a law on equal opportunities, aimed at strengthening the rights and possibilities of women employed in the federal civil service (DE0112206N). The Greens, the PDS and the SPD now want to introduce similar gender equality legislation for the private sector (DE0107231F). The CDU/CSU and the FDP oppose this idea. For the FDP, women's employment is hindered by existing regulations, and it thus calls for more flexible working time and the abolition of special safety rules for women. By contrast, the SPD plans more support for women and proposes establishing a new 'gender institute' and introducing an annual government declaration on gender issues. Employment quotas and a 'gender audit' report in the public service are proposed by the Greens.

Commentary

If the government changes after the general election in September 2002, the course of moderate reform taken by the current red-green government will change. The FDP in particular is calling for massive deregulation and liberalisation in the fields of industrial relations and the labour market, with social security linked to people's ability to work. In a more moderate form, the CDU/CSU also seeks more deregulation and more incentives to take up employment in low-paid jobs. By contrast, the SPD and the Greens still rely on the German system of association-level collective agreements and defend the reforms they have introduced to strengthen social security and employees' rights. The PDS wants to strengthen trade union rights, social security and labour market regulation.

There are also major differences in the area of employment and economic policy. The CDU/CSU and the FDP call for massive tax reductions, cuts in public expenditure and privatisation. For the SPD and the Greens, budget consolidation is an important aim, and for the SPD it should be complemented by European coordination between the ECB, the social partners and governments. The PDS supports more public investments and a growth target for the ECB.

Regarding gender policy, better childcare is a crucial topic for all parties. Apart from that, there are significant differences on how to achieve greater gender equality. The SPD, the Greens and the PDS advocate new gender equality legislation for the private sector, while the CDU/CSU and the FDP oppose additional legal obligations in this area.

The statements on the general election made by the German Federation of Trade Unions (Deutscher Gewerkschaftsbund, DGB) and the Confederation of German Employers' Associations (Bundesvereinigung der Deutschen Arbeitgeberverbände, BDA) mirror the different political positions. While BDA mainly supports deregulation of the labour market and cuts in social benefits as an incentive for unemployed people to take a job, DGB focuses more on better training and support for unemployed people, as well as on a better macroeconomic coordination at both national and European level in order to promote growth and investment. (Torsten Niechoj, WSI)