Collective Organizations in German and American Labor Law

Abstract

A fundamental characteristic of German industrial governance is the fact that it is not completely regulated by the state. A broad realm is set aside in which social forces can govern themselves autonomously. The labor laws are created not only by the state as legislator (Article 74 (1) no. 12 of the German Basic Law)¹⁵, but also by the parties to the collective wage agreements (trade unions and employers’ associations), as well as by the individual employer (Section 2 (1) of the Collective Wage Agreements Act¹⁶), the shop partners (works council and employer) and the individual parties to the employment relationship (employee and employer). The various protagonists of the labor law regulations have diverse sociopolitical tasks which can overlap. Specifically, the trade unions and individual works councils are increasingly coming into competition with each other¹⁷.