German Model of Industrial Relations

The German model of industrial relations is characterized by strong collaboration between employers, employees, and the government. It emphasizes consensus, social partnership, and collective bargaining through works councils and sector-specific agreements. Employees have significant influence via co-determination rights on company boards, fostering shared decision-making. This system aims for economic stability, social fairness, and worker participation, balancing flexibility for employers with protections and voice for workers. It promotes a cooperative approach rather than adversarial conflict, seeking to harmonize economic efficiency with social welfare.