Working in Germany

EMPLOYMENT CONDITIONS

German wages are comparatively high; mandated social contributions and other benefits such as sick and vacation leave and a 13th-month salary increase the cost of doing business in Germany. Employment conditions and termination are strictly regulated under German law, applying to all firms with more than six employees.

HOURS, WAGES AND BENEFITS

The Betriebsrat, workers' council, must be consulted on manpower planning and dismissals. If a fired employee has been with the firm for at least six months, the dismissal may be appealed immediately to a special labor court.

A MINIMUM WAGE IS NOT ESTABLISHED BY LAW.

The work week is between 35 and 40 hours; unions are pressing for a reduction of hours. Overtime is officially discouraged, commands high pay, and must be approved by the Betriebsrat.

German Social Insurance Law mandates employer contributions and percentages to a program of health, pension, unemployment, and assistance insurance. Contributions to the national health insurance program are compulsory for both worker and employer. White-collar employees who earn over a specified level may choose to enter a private plan, to which the employer is then required to contribute.

The Federal Republic's constitution mandates equal employment treatment of men and women, but that is not always realized in practice. Women comprise an estimated 40 percent of working Germans. Special laws require employment of the handicapped --companies must provide work for one disabled person for every 16 able-bodied employees or be fined.

LABOR MARKET

In recent years, an economic contradiction has characterized German unemployment rates. Although the German economy continues its dependence on the foreign guest worker in many areas, unemployment among Germans has climbed in recent years. This is particularly true of the northern industrial areas and in the former East Germany. One reason for this paradox is the disdain on the part of many Germans for the work done by foreigners. Another is that most of the unemployed are not located in the areas where work may be available, notably the south. Less mobile than in many other countries, the German workforce is far less likely to move to where jobs are available.

Unemployment has also risen steeply among foreign workers, with as many as 25 percent of the Turks legally resident in Germany out of work.

The German work force is highly unionized --over one third of employees; there is little labor unrest, however. Although strikes occur, they are much less frequent than in most other major industrial countries.

Labor-management relations are based on cooperation, which also includes government participation. Unions are represented on company boards, enjoying a say in management that tends to work against militancy. Disputes ideally are headed off by efforts of all parties to work out a consensus. The unions play a crucial role in negotiating industry-wide collective wage agreements with employers' associations that apply to almost all workers and are legally binding.

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		No cubicles. No privacy. Just lots of open space. Frau Ganz, Rolf Weissenfels, Andreas Hartinger, and Dieter Pachtner are working diligently to complete their assignments
		(left to right) Unknown visitor, Daniela Friedrich, and Marion Leutes of our application support team for Production Machines.
		(left to right) Stefan Gunbrecht, Alexandre Bonay, and Wolfgang Zeldes from the PM application group.
		(L to R) George Smutzer, Otto Suntinger, Josep Hammer, and Guenter Barth of the PM marketing team.
		The main gate to the F-80 facility in Erlangen Germany.