Abstract
Globalization not only stretches itself into the areas of goods and capital but also captures the labour market as well. As in a „burning glass“, the issues raised by globalization for Germany as a business location have particular resonance in the building industry, which has experienced greatly increased labour migration during the 1990s. In this industry, production is for the most part bound to a particular place and cannot be transferred abroad; instead, low-wage workers are imported. As a result of this development, the situation in the German building labour market has changed fundamentally. The labour market is now split, with low-paid foreign workers competing with highly paid domestic counterparts. The debate over the Foreign Employees Posting Act, which seeks to curb low-paid competition from abroad and to enforce the adoption of German labour and welfare standards for the people concerned, typifies how far a paradigm change in labour market relations in Germany has already progressed both in the political sphere and between the two sides of industry. The case of the building industry can be clearly seen as an attempt to achieve a further step towards a general system change in labour market relations in the Federal Republic of Germany.
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