Labor Formation Comparison: Germany vs USA - Free Essay Sample

This paper evaluates the aspects of labor formation in both Germany and the United States of America (USA). In Germany, the formation of trade unions is lower and less popular. Several scholastic pieces of research reveal that less than 20% of employees in Germany still belong to a union. Unions were strong in German after the end of the 1945 World War, but since the emergence of a different form of labor relation exists that is different from the typical idea of trade unions (Behrens, Fichter & Frege, 2003). The German labor industry is composed of a network of organizations and institutions that regulate the conflicts between capital and labor interests. The labor relations have ensured the continuous growth and expansion of the labor industry in the country and its democratization. The labor model insists on enhancing and promoting unity among laborers. When promoting unity among the members, the model encourages members of the union to portray positive values and solidarity in the way they present worker's and bear the interest of every party in the working class (Behrens, Fichter & Frege, 2003). In Germany, unions operate under the umbrella of the German Confederation of Trade Unions or Deutscher Gewerkschaftsbund (DGB), where joining is voluntary.

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DGB is the country's famous and most significant trade union and was formed in the year 1949. DGB highlights the general interests of its member trade unions, such as political decision making and their influence at local, federal, and Länder government levels (Behrens, Fichter & Frege, 2003). The individual trade unions pay a certain amount to the parent union. Workers are not direct members of the parent umbrella. Instead, they join individual trade unions through which they pay their membership dues. Individual members of the umbrella are weak when representing the interests of its members and may manifest as representative matters. DGB does not take part in the direct negotiations between organizations, and neither does it influence industrial or bargaining power (Dribbusch & Birke, 2012). Under the DGB, eight individual unions operate as industry trade unions and organize the members according to companies, departments and branches, and organizations. The regrouping and remerging of other trade unions have also led to the development of large, multibranch trade unions within DGB, less than ten percent of the union members consist of unemployed civilians, around 20 percent are pensioners. At the same time, the remaining are civil servants (Dribbusch & Birke, 2012). Civil servants are stand to benefit more from the union than any other member. The union grants civil servants the freedom to gather. However, they are unable to engage in collective bargaining since their working time and pay are determined by the parliament.

Members unions of DGB term themselves as unified trade unions as they do not represent the interests nor depend on the funding of any political parties. Many of the members of GDB work in the public sector. Most of the members of the union are from the metal and electrical industries, waste disposal, and the public transport system (Dribbusch & Birke, 2012). However, few members are from private service lending institutes such as banks, craft traders, and insurance companies. Large enterprises make it easy for unions to conduct recruitment, whereas small enterprises make it difficult for trade unions to instill control. Another factor that hinders the development of trade unions in Germany is the aspect of job specialization. Many times, employees under the union may find work as agency employees or fixed-period workers.

Moreover, newly established companies do not intend to incorporate trade unions in their operations. The labor structure in Germany also oversees other aspects like conflict resolution at workplaces by engaging workers in decision-making (Dribbusch & Birke, 2012). Many workers in the country view unions as conflict insurance since unions offer support. The political changes pushed by the trade unions also apply to non-unionized members. Hence, workers can enjoy from policies of the trade unions without serving as members of the union.

The individual unions within DGB finance their operations with the proceeds from membership payments and income generated from their possessions. Individual unions do not receive public subsidies or state funding for their operations. The trade union pays for the entire administrative and operational costs by itself (Dribbusch & Birke, 2012). The amount of membership also varies according to wages. A decline in the number of members results in financial complications for the affected trade unions.

Germany's labor structure has maintained low unemployment for years within the country and fast economic recovery, which has attracted the interest of scholars. The trade unions act as activists for innovation and development. The labor structure also facilitates a dual strategy that offers protection for short-term activities and ensures an organization sticks to its strategic developmental plan. Unions in Germany help improve transparency and access to information (Dribbusch & Birke, 2012). For instance, unions carry out research surveys and conduct conferences at the regional, industry, or company levels, thus ensuring that members understand the influence of the company on the industry and enhancing the transfer of information between trade unionists and work councils in the country. Unions do not solve problems meant for the management to avoid conflict of interest.

However, the case is different compared to trade unions in America. In America, trade unions wield too much power, especially when it comes to the organization of labor. Over 30 percent of the employees in the public sector belong to trade unions compared to approximately six percent of employees in the private sector (Visser, 2019). In America, unions play a crucial role in enhancing equality in bargaining power. In strong unions, employers have to ensure they achieve the demands of the employees as represented by the union, such as pay and workplace regulations. Therefore, unions in America offer employees the power to punish employers who are unable to satisfy the demands of the working population as detailed in the work contract, popularly identified as a strike.

Unions in America wield political power by encouraging political solidarity. Unions help form more structured communities based on democracy. Individuals who do not subscribe to the ideas presented by many of the union members may appear passive and unsatisfied with the policies. Labor movements enable members to feel connected in ways that promote political activity (Nehls, 2019). They encourage solidarity by working on issues that promote the rights of their members. In America, unions also engage in politics directly by mobilizing individuals during electoral campaigns.

Moreover, unions help offer a platform for practical electoral reforms, which counter the influence of money to swing votes. Unions are powerful in America compared to Germany because they wield economic power (Nehls, 2019). Workers have few options when pitted against their employers, which makes it hard for them to engage in bargaining. Unions help achieve a power balance between the employer and the employee by ensuring that every party plays its specific role as outlined in the employment contract. Strong worker unions require employers to develop deep associations with these employees, thus enabling the employer to access labor (Nehls, 2019). Hence, workers in America can hold long-standing strikes with efficiency compared to Germany, where unions are unable to engage in strikes due to the absence of a strong advocacy group.

America lacks a dual system of representing employees such as unions and work for councils as compared to Germany, whereby the unions engage in negotiations with individual companies or the individual's office. Moreover, the interests of unions in America may differ according to the plant (Nehls, 2019). Some unions in America are active at the plant level, while other sectors such as the company and shop level have union representatives who have different interests. Further, unions in America engage the locals more compared to the unions in Germany, which do not incorporate public participation. Locals help unions to collect fees from members as well as undertake duties as directed by the unions. In America, the locals take part in public campaigns, presentation of grievances, and negotiations of wages (Nehls, 2019). Local may operate freely. However, they should subscribe to national unions. However, in Germany, regional collective responsibility is rare.

Conclusion

In summary, this paper shows that the formation of unions is different in America compared to the formation of unions in Germany. Trade unions in Germany play a secondary role in the management of workers, such as enforcing compliance with organizational policies and avoiding taking part in political activities. On the other hand, unions are highly active in America, and they are vocal in promoting political causes.

References

Behrens, M., Fichter, M., & Frege, C. M. (2003). Unions in Germany: Regaining the initiative?. European Journal of Industrial Relations, 9(1), 25-42. Retrieved from https://www.researchgate.net/publication/240280128_Unions_in_Germany_Regaining_the_Initiative

Dribbusch, H., & Birke, P. (2012). Trade unions in Germany: organisation, environment, challenges. Friedrich-Ebert-Stiftung, Central, and Eastern Europe. Retrieved from https://library.fes.de/pdf-files/id-moe/09113-20120828.pdf

Nehls, H. (2019). Strengthening international exchange and cooperation with labor unions in America in the field of apprenticeship/vocational training. Retrieved from https://www.unions4vet.de/Media/Unions4Vet/Downloads/L%C3%A4nderberichte/Unions4VET-country-report-USA.pdf

Visser, J. (2019). Trade unions in the balance. Geneva: International Labour Organization's Bureau for Workers' Activities (ACTRAV). Retrieved from https://www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---actrav/documents/publication/wcms_722482.pdf