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Pacts for employment and competitiveness in Germany
Author(s) -
Seifert Hartmut,
MassaWirth Heiko
Publication year - 2005
Publication title -
industrial relations journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.525
H-Index - 3
eISSN - 1468-2338
pISSN - 0019-8692
DOI - 10.1111/j.1468-2338.2005.00355.x
Subject(s) - decentralization , business , industrial relations , labour economics , market economy , economics , economic policy , management
Pacts for employment and competitiveness (PECs) in Germany reflect a process of organised decentralisation, delegating additional rights and responsibilities for industrial relations agreements to the plant level. PECs are now used by both struggling and prosperous firms. An analysis of the content of recent agreements shows that the economic situation of the firm has a significant impact on changes agreed at the firm level. Changes in working time are associated with the demand for the products and services of a firm while financial concessions by employees are more common in firms with weak profits.