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European Relations and Human Resource Management > German and Swedish ER > Flashcards

German and Swedish ER Flashcards

1
Q

German employers can form interest organizations called associations responsible for collective bargaining. This includes: (3)

A
  1. General Business/Trade Associations - Associations representing general economic and product market interests with the government
  2. Special Employer’s Association - social policy, labor market, interest, employment relations, and CB
  3. Chambers of Industry and Commerce - are public entities that perform semi-governmental tasks
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2
Q

Why has there been a decrease in German associations

A

Difficult to manage competing interests –> decrease in membership since 1980 –> minimizing power of associations

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3
Q

German bargaining autonomy

A

Freedom of associations - union and employer associations can engage in CB without any interference from the state

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4
Q

Most important German Acts (3)

A
  1. Work constitution Act
  2. Collective Agreement Act
  3. Social Security Law
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5
Q

Work constitution act (4)

A
  1. Legal basis for co-determination at the workplace level
  2. Work councils set of rights
  3. Does not apply to small enterprises
  4. Co-determination
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6
Q

German Dual system

A
  1. Co-determination - workplace level

2. Collective bargaining - industry level

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7
Q

Co-determination

A

Cooperation between management and workers in decision making, especially by the representation of workers on management boards

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8
Q

Multi-Employer Wage Bargaining

A

The wage negotiation takes place between employers’ unions

and employees unions, usually for an entire industry, at either state or national level.

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9
Q

German Work councils (4)

A
  1. Are mandatory, employee formed initiative
  2. Cannot strike or CB
  3. Work with management
  4. Do not engage with issues as in pay and income distribution
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10
Q

German Unions (2)

A
  1. Provide work councils with information and training

2. Many members of work council are in unions

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11
Q

Unions depend on work councils for:(3)

A
  1. New members
  2. Monitor the implementation of collective agreements
  3. Assist in industrial action
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12
Q

Trends of decentralized bargaining = ___ # of work agreements

A

Increase

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13
Q

Collective Agreement Act (3)

A
  1. Pay Agreement - fixed the levels of pay and periodic increases
  2. Frameworks agreement - specify payment systems
  3. Umbrella agreements - regulate all other conditions of employment
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14
Q

Due to Europeanization and globalization, how has ER in Germany become much more European? (3)

A
  1. CB is becoming more decentralized
  2. ER losing power due to growing inequality - levels of inequality in Germany mirrors the UK
  3. European social model - Right to work, social protection, civilized standards in the workplace
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15
Q

Characteristics of Swedish model (5)

A
  1. Tripartite Corporatist system
  2. 71% of employees are represented in a union
  3. Decentralized CB
  4. Employees represented on board of company
  5. Generous welfare state
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16
Q

Key Actors in Swedish Models: (3)

A
  1. Trade unions
  2. Employers
  3. Government
17
Q

Swedish Trade unions face issues: (4)

A
  1. Decline in union density
  2. Less public support
  3. Weaker link in social democratic party
  4. European labor market
18
Q

Swedish employers (2)

A
  1. Confederation of Swedish Enterprise - negotiating organizations to lobby organizations
  2. Export-oriented
19
Q

Swedish government

A
  1. Not involved in industrial relations between unions and employers
  2. Extremely generous welfare state - social democratic party
  3. Trends towards liberalization
20
Q

Influence of Europeanization and globalization on Swedish Model

A
  1. European legislation are threats to the Swedish Model of CB - minimum wages & individual rights
  2. Trends towards liberalization - movement away from national level wage coordination
    - Cross-class realignment - closer coordination between white and blue collars bargaining within the export sector
  3. Social Corporatism adopted and Sweden still has coordinated market economy
21
Q

What is the Laval Case?

A
  1. In 2004, Laval hires Latvian workers to rebuild a school in Stockholm
  2. Pays Latvian workers less than Swedish minimum wage –> social dumping
  3. Laval refuses, therefore, trade union blockages the construction site
22
Q

Court decision of Laval Case: Swedish Labor Courts Vs. European Court of Justice

A

Swedish Labor Court - TU is right; Laval must respect Swedish collective agreements

European Court of Justice - Laval is right
- Swedish cannot make a company comply with its collective agreements

23
Q

Laval conclusion

A
  1. The ECJ: very neo-liberal stance
  2. Priority - free markets within the union
    - puts countries workers and social systems in competition
    - Can lead to law shopping, social dumping, race to the bottom
24
Q

Hope for the future: The Lisbon treaty

A

Gives more power to EU court for human rights on social issues over ECJ

European Relations and Human Resource Management (8 decks)

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