Coping with economic integration: Corporatist strategies in Germany and Austria in the 1990s

Abstract

While Germany is facing the wholesale disorganisation of sectoral collective bargaining, the Austrian social partnership has gained new strength in the 1990s. Comparatively, Austro‐corporatism proved able to undergo a process of skilful adaptation. This divergence in performance poses a puzzle, given Germany's commanding presence both in international markets and in the European Union, and given Austria's traditional hostility to modernisation. This article explains German—Austrian differences in the performance and resilience of corporatist governance in the face of modernisation and market integration in terms of (i) the organisational differences between German and Austrian corporatism (sectoral concentration versus vertical centralisation and little horizontal formalisation); (ii) the long term policy strategies employed by labour unions in either system (co‐determination versus macro‐level policy influence); and (Hi) by the different responses to modernisation chosen by German and Austrian corporatist actors (internal organisational reforms verus becoming modernisation brokers).