German car manufacturers make more than twice as many cars as American manufacturers. German auto workers earn an average of $67. 14 in wages and benefits, while American auto workers earn an average of $33. 77. We're told that American auto workers need to accept pay cuts because they earn too much for the manufacturers to be profitable, yet German manufacturers are very profitable despite paying so much more. So, how does that work?
In addition to high trade union density supporting the power of German autoworkers’ wages, the German constitution itself includes a second mechanism for keeping employees involved in the decisions of the firm for which they work. The Works Constitution Act provides for the creation of Works Councils in each factory. The Works Councils provide a mechanism through which a company's management must work with employees, whether they are in a union or not, on issues affecting work life, such as shop floor conditions, scheduling shifts, and other issues particular to the factory. This system, according to Mund, institutionalized “direct contact for workers’ representatives with management at various levels, from lower to middle to senior management in daily affairs.
Thank you for taking the time to comment.