Article

Employers’ associations and trade unions divided on general election outcome

Published: 9 October 2005

In the general election held on 18 September 2005 both the ruling government coalition of the Social Democratic Party (Sozialdemokratische Partei Deutschlands, SPD) and Alliance 90/The Greens (Bündnis 90/Die Grünen) and the joint opposition composed of the conservative Christian Democratic Party (Christlich Demokratische Union, CDU), its Bavarian associate party the Christian Social Union (Christlich-Soziale Union, CSU), and the liberal Free Democratic Party (Freie Demokratische Partei, FDP) failed to win a parliamentary. Both coalitions did not gain a majority because some 8.7% of the vote went to new Left party (Linkspartei.PDS) - the new label of the former Party of Democratic Socialism (Partei des Demokratischen Sozialismus, PDS) - see table 1 below. The party aims at a merger with the new Election Alternative Labour and Social Justice (Wahlalternative Arbeit und Soziale Gerechtigkeit, WASG) which was founded in 2004 by former members of the SPD, various left-wing groups and a number of trade unionists. Members of the WASG stood for parliament on lists of the Linkspartei.PDS.

In Germany's general election on 18 September 2005, both the incumbent 'red-Green' coalition government of the SPD and Green parties and the joint opposition of the conservative CDU/CSU and the liberal FDP failed to secure a parliamentary majority. The German parliament, the Bundestag, will consist of five parliamentary factions, as the new Left party passed the required threshold of 5% of the vote. The Confederation of German Industries (BDI) expressed disappointment about the failure of the conservative and liberal opposition to win a majority, whereas leading trade union representatives expressed relief that a conservative-liberal victory had been prevented by voters.

In the general election held on 18 September 2005 both the ruling government coalition of the Social Democratic Party (Sozialdemokratische Partei Deutschlands, SPD) and Alliance 90/The Greens (Bündnis 90/Die Grünen) and the joint opposition composed of the conservative Christian Democratic Party (Christlich Demokratische Union, CDU), its Bavarian associate party the Christian Social Union (Christlich-Soziale Union, CSU), and the liberal Free Democratic Party (Freie Demokratische Partei, FDP) failed to win a parliamentary. Both coalitions did not gain a majority because some 8.7% of the vote went to new Left party (Linkspartei.PDS) - the new label of the former Party of Democratic Socialism (Partei des Demokratischen Sozialismus, PDS) - see table 1 below. The party aims at a merger with the new Election Alternative Labour and Social Justice (Wahlalternative Arbeit und Soziale Gerechtigkeit, WASG) which was founded in 2004 by former members of the SPD, various left-wing groups and a number of trade unionists. Members of the WASG stood for parliament on lists of the Linkspartei.PDS.

Table 1: General election September 2005
Party 2005 seats 2005 votes (%) 2002 seats 2002 votes (%)
CDU/CSU 226 35.2 248 38.5
SPD 222 34.3 251 38.5
FDP 61 9.8 47 7.4
Linkspartei.PDS* 54 8.7 2 4.0
Bündnis 90/Die Grünen 51 8.1 55 8.6
others - 3.9 - 3.0

* In 2002: PDS

In the run-up to the elections employers’ representatives had made no secret about favouring a victory of the conservative and liberal opposition, hoping that these parties would provide for a more business-friendly tax and deduction environment. In an immediate reaction to the election outcome, the president of the Confederation of German Industries (Bundesvereinigung der deutschen Industrie, BDI), Jürgen Thumann, expressed his disappointment about the outcome in a TV interview. In a [statement](http://www.bdi-online.de/BDIONLINE_INEAASP/iFILE.dll/X272D7D9097F24CA8B1AE0ECD99D76539/2F252102116711D5A9C0009027D62C80/PDF/PM 85-05 BDI-Pr%E4sident Wahlausgang.PDF) to the press he declared that the outcome would make governing more difficult but that the challenge to increase economic growth and support the creation of value would remain.

The president of the German Retail Federation (Hauptverband des Deutschen Einzelhandels, HDE), Hermann Franzen, called the outcome of the elections a fiasco but said the country now needed political clarity and a government that could reform tax and labour law systems.

The president of the German Association of Chambers of Industry and Commerce (Deutscher Industrie- und Handelskammertag, DIHK), Ludwig Georg Braun, demanded a stable government. He said that there would be no alternative to future changes in the social security system, more labour market flexibility, an overhaul of the tax laws and less bureaucracy for small and medium enterprises

The Confederation of German Trade Unions (Deutscher Gewerkschaftsbund, DGB), although it did not launch an official appeal in favour of any party, had shown before the elections substantial concern that a conservative-liberal victory would result in restrictions on bargaining autonomy and co-determination rights and further cuts in the social security system. Therefore the chair of the DGB, Michael Sommer, interpreted the outcome as a vote in favour of fair answers to the challenges the country would face.

The chair of the German Metalworkers’ Union (Industriegewerkschaft Metall, IG Metall), Jürgen Peters, said the outcome was a vote against neoliberal policies. The outcome would show a structural majority in favour of an attitude of solidarity and a social reform policy. The argument of the chair of the Mining, Chemicals and Energy Industrial Union (Industriegewerkschaft Bergbau, Chemie, Energie, IG BCE), Hubertus Schmoldt, followed the same theme.

Frank Bsirske, who chairs the large United Services Union (Vereinte Dienstleistungsgewerkschaft, ver.di) said the defeat of the red-Green coalition would be the price for its policy of cuts in the social security system which had triggered major protests in 2004 (DE0409204N). He raised concerns that these policies might be continued and said that ver.di would seek a dialogue with all parties in parliament to demand social and just policies in the interest of employees.

This information is made available through the European Industrial Relations Observatory (EIRO), as a service to users of the EIROnline database. EIRO is a project of the European Foundation for the Improvement of Living and Working Conditions. However, this information has been neither edited nor approved by the Foundation, which means that it is not responsible for its content and accuracy. This is the responsibility of the EIRO national centre that originated/provided the information. For details see the "About this record" information in this record.

Eurofound recommends citing this publication in the following way.

Eurofound (2005), Employers’ associations and trade unions divided on general election outcome, article.

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