Still a Coordinated Model? Market Liberalization and the Transformation of Employment Relations in the German Telecommunications Industry

Abstract

This paper examines recent changes in collective bargaining and employer strategies in the German telecommunications industry following wide-ranging market liberalization measures in the late 1990s. Findings demonstrate that Germany’s distinctive industrial relations and vocational training institutions continue to influence the employment systems adopted by large firms, despite declining bargaining coverage and increased fragmentation in collective agreements. However, practices that invest in worker skill and discretion in core workplaces are coupled with outsourcing and subsidiary strategies that allow employers to reduce labor costs for more peripheral jobs. Research is based on interviews and site visits at major telecommunications firms, as well as secondary analysis of company documents and industry reports.