Reforming the German Labour Market: The Case of Temporary Agency Work

Abstract

Germany is known as one of the countries where the collective representation of interests through associations (‘corporatism’) is particularly strong. However, after the tripartite Alliance for Jobs, Training and Competitiveness failed to agree on solutions for combating high unemployment, an independent commission established by the government (the ‘Hartz commission’) has currently set the agenda for labour market reform. This article addresses the question of whether these events signal the end of corporatism in labour market policy in Germany. An analysis of temporary agency work, an atypical form of employment addressed by the Hartz reforms, shows that fundamental reform in Germany must be initiated outside the system of tripartite interest negotiation. However, the implementation of such reforms depends on the traditional structures of interest negotiation between the social partners.