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Siemens - DaimlerChrysler: Will their recent labour-management agreements serve as models in Germany?

Michael Hüther, Norbert Berthold, Ferdinand Dudenhöffer
ifo Institut für Wirtschaftsforschung, München, 2004

in: ifo Schnelldienst, 2004, 57, Nr. 17, 03-12

The wage agreements reached after long negotiations at Siemens and DaimlerChrysler have been acclaimed by politicians and the general public. The experts also agree that these agreements are not isolated cases. For Prof. Michael Huether, Cologne Institute for Business Research, these agreements could have model character but not so much in individual issues, which may be assessed differently in other industries, but because they show ways for achieving cost reductions and for improving production conditions in Germany in the interests of both enterprises and employees. For Prof. Norbert Berthold, University of Würzburg, the agreements at DaimlerChrysler do not have model character for other enterprises. He regards especially the small and medium-sized enterprises as disadvantaged: "Unlike internal agreements in small and medium-sized enterprises, which are mostly illegal, the site protection wage contract at Daimler-Chrysler in Sindelfingen is legal. Whereas the unions have not consented to many company agreements, this is not the case with DaimlerChrysler. The IG Metal union will not dare to contest an internal agreement signed by the Works Council of DaimlerChrysler. Small and medium-sized enterprises do not have this power and are thus at a disadvantage." Therefore politicians should smooth the way to more self-sufficiency of negotiating parties inside companies to allow for internal job alliances. Prof. Ferdinand Dudenhöffer, Gelsenkirchen University of Applied Science, sees the recent agreements as an important step in strengthening the competitiveness of Germany as an industrial location. In his opinion they will have a lasting influence on the future development of working hours in Germany.

JEL Classification: J300

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ifo Institut für Wirtschaftsforschung, München, 2004