Industrial Relations

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Due to the industrial revolution in countries, there has arisen a need for industrial relations. There are regions that are viewed to posses the biggest economy globally. The largest economy globally being the European economy since they control a big percentage of the global market. Germany is believed to be the Europe’s largest economy. According to Euro found (2009), the largest sector in Germany is the service sector which comprises of about 68% of the labor market. The state has transformed into a service society and hence generates about 70% of Gross Domestic Product from this sector. This was slightly less than the average Gross Domestic Product of the 15 European Union members before the enlargement (Britannica, 2010).

Germany has a five model principle that uses in the industrial relations. This system was shaped in the post World War II period in the federal state and later extended to the East Germany state after the unification (Lazlo Goerke, 2007). The five models consist of; relative centralization of collective bargaining, extensive juridification, dual structure, collective representation of all employees and ‘intermediary’ character of collective bargaining institutions (Manfred Weiss ‘et al’, 2008).

According to Etui.com (2009), the Germany industrial relation model, unions are to be organized at the industry level. It also recommends co-existence of the unions with work councils at the plant and company levels. The German dual system of industrial relations has gained a unique status in international comparative studies because of the level of exclusiveness of the two pillars of interest representation (Peter Mayer ‘et al’, 1998). This is unique among the European and the Western countries. The states that ha...

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