Industrial Relations Structures Research Articles

Digital Cleavages and Risk in the Platform Economy in Belgium

The adoption of digital technologies challenge existing institutional approaches towards labour markets segmentation and dualisation by dissolving the employer-employee nexus. When national governments adapt to digitalisation by deregula-tion they risk to fostering "flexibility at the margin" which can reinforce digital cleavages at the intersection of tasks, skills and new technology. This is because deregulation threatens the existing country-based employment and industrial rela-tions structures by favoring companies fissuring the labour markets while reducing employment protections for all workers. In the paper we illustrate this argument by shedding light on the case of Belgium as one of the countries in Europe with a gen-erous and encompassing system of collective bargaining and strong employees' representation structures, and which has been experiencing a deregulatory trend in response to digitalisation, following the introduction of the 2016 law "De Croo".

The impact of labor unionization on monitoring costs

This paper analyzes the impact of labor unionization on monitoring costs. Our findings show that monitoring costs are significantly higher for unionized firms. We demonstrate that the more complex, industrial relations structures that characterize unionized firms increase monitoring risks and corporate costs. We further show that monitoring agents consider political ideology supportive to labor unions as a parameter that enhances relevant costs. Additionally, we demonstrate that monitoring costs are lower in the presence of employee share ownership. We conclude that labor unionization increases the costs of monitoring agents, a burden which is amplified or mitigated depending on the structure of industrial relations.

European integration and the paradoxical answers of national trade unions to the crises of capitalism

ABSTRACTIn their introduction to this special issue, the editors mentioned that the commodification of labour is one important feature of capitalism. Hence, the reaction of the principal organizations that represent and defend labour needed to be explored. This article focuses on Belgian and German trade unions’ apprehensions of European integration during the 1970s and sheds lights on two major findings. First, trade unions’ perceptions of European integration were very clearly influenced by the condition and the evolution of capitalism. National trade unions observed that the transformations of capitalism could not be adequately addressed by national polities and industrial relations structures. Hence, trade unions heavily insisted on the necessity of political and trade unionist European cooperation. The latter is considered a necessary intermediary to allow labour to counterbalance the new forms of capital and to regain the influence it lost nationally. The second finding is that there existed a huge paradox between this enduring rhetoric of the necessity of European integration and the willingness of trade unions to give up some of their national prerogatives. The evolving forms of capitalism made it imperative to cooperate more at the supranational level but trade unions remained very much reluctant national institutions.

The legacy of Thatcherism in European labour relations: the impact of the politics of neo-liberalism and austerity on collective bargaining in a fragmenting Europe

The ongoing popularity of neo-liberalist ideologies and the impact of state-imposed austerity measures has been having a detrimental impact on the structure of industrial relations within the European Union (EU), especially in the periphery of Europe. This report assesses these developments in the EU member states most affected by the most recent economic crisis, namely Greece, Ireland, Italy, Portugal, Romania, Slovenia and Spain. We highlight how trade unions in the countries assessed are increasingly constrained in their ability to regulate the conditions of work through collective agreements, which have systematically deteriorated, making it difficult to sustain mobilisation and negotiation strategies. This has had a deleterious effect on pay and working time. Broader austerity measures have also had a substantial impact on areas such as labour inspection, judicial processes and state mediation services, leading to heightened disorganisation of labour relations with negative effects for both workers and management. The impact of neo-liberal and anti-trade union ideas initially inspired by the New Right in the United Kingdom and the United States of America during the 1980s has played a significant role in shaping the ideology behind this shift in EU policy towards ‘weaker states’. We therefore argue that this political heritage of disorganising labour relations carries great risks in social and organisational terms for all actors concerned, especially workers and their representatives. To this end, we develop the critique of deregulation outlined in Ewing et al (2016) and argue that coordinated structures are important for questions of social justice.

Towards a comprehensive explanation of the development of occupational pension. The interplay between welfare state legacies, industrial relations, and housing regimes in Belgium and the Netherlands

AbstractThis article investigates the interplay between social policies, industrial relations, and housing regimes in order to explain the development of occupational pensions. The structure of statutory provisions and industrial relations of the Bismarckian “latecomer” Belgium make it appear a “most likely case” for a successful transition into “mature” multi‐pillarism. The continued importance of outright homeownership in the retirement package turns out to be a key in explaining that such a transition largely failed in Belgium. In the Netherlands, on the other hand, two financial crises have eroded the apparent advantages of securing the second‐tier function of retirement provisions by relying on prefunded occupational plans and a financialized housing regime. The crises provoked a drift away from the “high road” of second‐pillar pensions, and initiated a process that increases the importance of outright homeownership in the retirement package at the expense of generously funded occupational plans.

Economic Downturn and Restructuring in the U.S. Banking Sector: United States Report and Questionnaire

The banking sector in the United States continues to work through major restructuring. This report hopes to outline and address some of the key changes with a focus on the years from 2000 to 2010. Special attention is paid to the structure and main features of industrial relations in the banking sector with a particular emphasis on the challenges of the present economic crisis. The banking sector in the United States is still recovering from the crisis and global recession. The banking and finance sector comprises about 8 percent of U.S. GDP. The banking workforce is only 1.4 percent unionized. Industrial Relations and collective bargaining has a small impact on the sector. The Dodd-Frank Act signed by President Barack Obama in July 2010 calls for regulatory reform to prevent future bailouts and consumer protections to taxpayers. As of November 13, 2010 there have been 146 bank failures in the United States in 2010. That is the highest number of failures since the savings and loan crisis of the 1980’s and 1990’s. The crisis in the banking sector is not over and the rules that will help prevent future crises are yet to be written.

Slovenia at the crossroads: Increasing dependence on supranational institutions and the weakening of social dialogue

Since the world crisis hit Slovenia, the reconfiguration of the industrial relations system has mainly been exogenously determined. Public debt and the related dependence on supranational institutions and financial (bond) markets have been strongly correlated with the unilateral imposition of these institutions’ demands and pressures. Despite the mounting pressures, the formal structure of industrial relations has not undergone major changes, but within this structure there are clear signs of major changes in power relations and in the logic and quality of the industrial relations system.

Outsourcing of public services in Europe and segmentation effects: The influence of labour market factors

This article examines the influence of labour market factors on public authorities’ decisions to outsource public services in five countries. The dominant focus in the outsourcing literature is on a narrow range of factors: public–private gaps in pay, union membership and collective bargaining coverage. We find such differences to be variable, and develop a more encompassing perspective. This includes consideration of labour market rules that establish wage floors and employment protection (especially for outsourced workers) and the possible differentiation of legal status between public and private employees. Our case studies from local government in five countries highlight a set of country-specific interconnections between labour market factors and outsourcing. These lead to variations in both managers’ and unions’ approaches towards outsourcing and in outcomes for pay and working conditions. We call for a strengthening of the inclusiveness of industrial relations structures to combat problems of workforce fragmentation caused by outsourcing.

Marikana: Many questions remain

FOCUS ❐ SEVERE REPRESSION OF THE RIGHT TO STRIKE Timeline The unfolding of events prior to 16 August has been less clear than it should have been. The Inquiry has shed some light on these events yet it failed to draw these together to provide a concise report of how key events that unfolded. In order to assist those wishing to understand how these events unfolded ICTUR lists below our understanding of the attempted bargaining process and of the unfolding of violence that preceded the events of 16 August. During 2012 a strike wave throughout the mining sector saw thousands and thousands of workers taking industrial action – outside of formal industrial relations structures – to demand higher pay. The strike called at Lonmin’s Marikana mine fell within this context5 . April: management at the neighbouring Implats mine granted workers substantial pay increases – over and above existing collective agreement terms – to end a strike organised by an ad-hoc committee of workers6 . June: an ad-hoc committee of workers at Lonmin demanded a pay rise. July: Lonmin offered a small rise – over and above the collective agreement – but workers rejected this and held out for a larger rise. 9 August: workers held a meeting at the Wonderkop stadium at which they agreed to begin strike action in support of their pay claim. Lonmin issued a communiqué stating that it would not negotiate and arguing that the existing collective agreement rate must be respected7 . 10 August: Lonmin again refused to negotiate when the workers gathered at the mine and sent a delegation to speak with management. The crowd at the mine was then violently dispersed and fired on with dozens of rubber bullets in three separate shooting incidents. Lonmin guards claimed in each case these were fired in response to ‘intimidation’8 . Two strikers were also shot and injured in two further incidents at separate locations. The victims claim that Lonmin guards were responsible for these further shootings9 . 11 August: two strikers were shot by armed officials of the NUM trade union after a crowd marched to the NUM offices10 . 12 August: Two Lonmin security guards were killed by strikers11 after their colleagues initiated an armed confrontation with a group of strikers12 . Two other guards were assaulted. That evening strikers also killed a miner who had remained at work and assaulted three others13 . 13 August: another miner was killed by strikers Many questions remain The Marikana Commission of Inquiry has reported yet much remains unclear INTERNATIONAL union rights Page 16 Volume 22 Issue 3 2015 DANIEL BLACKBURN is Director of ICTUR O n 16 August 2012 police deployed units armed with assault rifles and live ammunition with the stated intention of forcing an end that day to a mine workers’ strike at the Lonmin Marikana platinum mine in North West Province. Sixteen miners died at the scene. Fourteen others died at another location. Four other miners died later that day from their injuries1 . An unknown number – but certainly more than one hundred people – were wounded. Following the shootings police arrested 259 miners , an apparent mass case of arbitrary arrest and detention. The detainees were then charged with the murder of the 34 miners shot and killed by police, but the decision was widely criticised, the charges were dropped, and the miners were later released2 . The dispute had erupted a week earlier when workers had demanded a pay increase after workers at a neighbouring mine (Implats) took unofficial strike action and were awarded very significant increases, substantially above the terms of their existing collective agreement. Marikana workers, many of whom were migrant workers, housed in awful conditions, and very unhappy with their pay rates, saw the Implats rise as a key opportunity to mobilise and to secure improvements to their own situation. In both cases the miners organised themselves into committees to petition management independently , having, for various reasons, lost confidence in either the capacity or willingness of the recognised NUM union to represent them3 . Neither dispute was without incidents of violence , which often mar South African industrial relations, though the murders marked the Marikana case as particularly severe. While Implats did ultimately concede to the workers’ demands Lonmin steadfastly maintained a position under which...

The role of mediation in the resolution of two industrial disputes in Ireland

Purpose – The purpose of this paper is to explore the impact of mediation on two long-running collective industrial disputes in Ireland using a theoretical framework established in the literature. Design/methodology/approach – The paper presents a detailed qualitative analysis of two disputes. In both cases a panel of mediators was invited to intervene when the established dispute resolution structures and processes had failed and impasse had been prolonged. Each member of the mediation panels, and the lead union representative, was interviewed about their perception of the mediation process and its impact. Interview questions centred around a set of mediation “Outcome Determinants” identified by Wall et al. (2001). Following Wall et al.'s proposal, Lewin's (1951) Force Field Analysis theory is applied as a theoretical lens for understanding the subtle impact of mediation in these cases. Findings – The empirical evidence suggests that while mediation did not lead directly to settlement, it influenced the resolution of these disputes. The disputes were a-typical in that most collective disputes in Ireland are resolved through established industrial relations structures and processes, either at firm level or through State-funded agents/agencies. However, intractable disputes occur periodically and there is an on-going need of this type of specialised ad hoc mediation. The Wall et al. framework combined with Force Field Analysis theory, provide a theoretical lens through which these disputes can be analysed and understood. Practical implications – An understanding of the nuanced impact of mediation is useful for justifying the continuation of this valuable approach. There is also some scope for predicting the likely impact of mediation in advance of engagement or at least allowing the mediators to explore the status of the Outcome Determinants related to a specific case in order to develop a tailored mediation strategy. Originality/value – This paper is unique in that it takes an existing theoretical framework and tests its application in two case disputes. The value of the framework is thus highlighted. Further application of the framework to other dispute scenarios would facilitate its development as a tool of understanding and some limited prediction. Mediation in this type of context has not been formally researched before. Public policy and theoretical implications of the work are highlighted in the concluding section.

Hyper-mobile migrant workers and Dutch trade union representation strategies at the Eemshaven construction sites

The EU regulatory regime and employers’ cross-border recruitment practices complicate unions’ ability to represent increasingly diverse and transnationally mobile workers. Even in institutional contexts where the industrial relations structure and labour law are favourable, such as the Netherlands, unions struggle with maintaining labour standards for these workers. This article analyses Dutch union efforts to represent hyper-mobile construction workers at the Eemshaven construction sites. It shows that the nexus of subcontracting, transnational mobility, legal insularity and employer anti-unionism complicate enforcement so that even well-resourced unions can, at best, improve employment conditions for a limited set of workers and only for a limited period of time.

The Tie That Snapped: Bubonic Plague and Mill Labour in Bombay, 1896–1898

AbstractIn September 1896, the city of Bombay witnessed the beginning of a long-drawn-out epidemic crisis, with the outbreak of bubonic plague. This article investigates one particular dimension of this crisis – its effects upon the city's cotton textile mills, and its profound, though temporary, alteration of the relations between employers and workers. It argues that the structure of industrial relations in the textile mills in the second half of the nineteenth century rested upon the retention of wage arrears by mill managements, which forced workers into permanent debt, and bound them to the mill and their employers. The demographic and industrial crisis ushered in during the plague years, the article shows, cracked open this structure of industrial control, and workers were able to sustain a new, fleeting system of industrial “regulation from below”, based on the daily payment of wages. Through a study of the tensions in textile mills in 1897, situated within the broader context of a crisis of urban labour relations, the article shows the ways in which industrial relations were both deconstructed and reconstituted in a new form.

Reforming and restructuring the Australian workplace: a study of the Williamstown Naval Dockyard 1983–1993

As a consequence of the global economic crises of the 1970s, in Australia, micro-economic reform of the economy, and in particular the labour market, was seen as a key catalyst in providing a more competitive industrial base for the country. Underpinning this was a fundamental change in the conflictual industrial relations structure that had framed work patterns and practices since Federation. The Williamstown Naval Dockyard in Melbourne was the Australian Federal Government's premier dockyard. It had a long-standing reputation for poor productivity, inefficient work practices and industrial unrest and had been described as Australia's worst worksite. After several failed attempts to reform the dockyard, the Federal Government privatised this utility as a catalyst to reform the work culture. On 1 January 1988, the dockyard was transferred to the highly competitive private shipbuilding sector. As the first public utility sold by an Australian Federal Government and the first workplace to adopt micro-economic labour reforms, including enterprise bargaining, the dockyard provides an opportunity to examine the nature of workplace restructuring in the most radical time of change for labour and trade unions in Australia's history. The dockyard was seen at the time as at the vanguard of this change. This paper explores the reforms undertaken in the dockyard.

The crisis and national labour law reforms – a mapping exercise

This Working Paper maps the labour law reforms in various European countries either triggered by the crisis or introduced using the crisis – falsely – as an excuse. Such reforms generally render existing labour law provisions more flexible and loosen minimum standards, shifting the emphasis to soft law (deregulation). In some countries it consists only of piecemeal although significant deregulatory measures, while in others it involves far-reaching overhauls of the whole labour code. Furthermore, in several countries fundamental changes are being made to industrial relations structures and processes which might jeopardise social dialogue and collective bargaining there. The authors critically address this large-scale deregulation of labour law currently taking place, in particular the lack of democratic foundations underlying the reforms and their negative impact on fundamental social rights and workers’ protection. The working paper is also complemented with an annex providing an analysis of the reforms on a country by country basis. These country studies will be regularly updated and are available and downloadable in English only.

The Crisis and National Labour Law Reforms

This paper1 maps the labour law reforms in various European countries either triggered by the crisis or introduced using the crisis – falsely – as an excuse. Such reforms generally render existing labour law provisions more flexible and loosen minimum standards, shifting the emphasis to soft law (deregulation). In some countries it consists only of piecemeal although significant deregulatory measures, while in others it involves far-reaching overhauls of the whole labour code. Furthermore, in several countries fundamental changes are being made to industrial relations structures and processes which might jeopardise social dialogue and collective bargaining there. The authors critically address this large-scale deregulation of labour law currently taking place, in particular the lack of democratic foundations underlying the reforms and their negative impact on fundamental social rights and workers' protection.

The Crisis and National Labour Law Reforms: A Mapping Exercise

This Working Paper maps the labour law reforms in various European countries either triggered by the crisis or introduced using the crisis – falsely – as an excuse. Such reforms generally render existing labour law provisions more flexible and loosen minimum standards, shifting the emphasis to soft law (deregulation). In some countries it consists only of piecemeal although significant deregulatory measures, while in others it involves far-reaching overhauls of the whole labour code. Furthermore, in several countries fundamental changes are being made to industrial relations structures and processes which might jeopardise social dialogue and collective bargaining there. The authors critically address this large-scale deregulation of labour law currently taking place, in particular the lack of democratic foundations underlying the reforms and their negative impact on fundamental social rights and workers’ protection. The working paper is also complemented with an annex providing an analysis of the reforms on a country by country basis. These country studies will be regularly updated and are available and downloadable in English only.

Undermining the European social model

FOCUS O AUSTERITY ANDTRADEUNIONRIGHTSINEUROPE Undermining the European social model Iln and/or countries level national/sectoral a shifting decentralise to clear ambition bargaining, collective company there several policy from level to Is countriesthereIs a clear policy and/orambitionto decentralise collective bargaining, shifting from national/sectoral level to company level STEFAN CLAUWAERT and ISABELLE SCHÜMANN are Senior Researchers at the European Trade Union Institute in Brussels InSomovia 14 his September address stated: 2011, to 'respect the ILO European for Director-General fundamental Parliament prinJuan on 14September 2011,ILO Director-General Juan Somoviastated:'respect for fundamental principlesand rights at workis non-negotiable: not evenin times ofcrisiswhenquestions offairness abound. Thisisparticularly important in countries havingtoadoptausterity measures. Wecannotusethecrisis as an excusetodisregard internationally agreedlabourstandards. ' A recent working paperoftheEuropeanTrade UnionInstitute CETUI') focuseson labourlaw reforms invariousEuropeancountries either triggeredbythecrisisor introduced usingthecrisis - falsely- as an excuse. The reportcritically addressesthelarge-scale deregulation of labour lawcurrently taking placeintheEuropeanmember states,in particular the lack of democratic foundations underlying the reforms, and their negative impact on fundamental socialrights and workers' protection. Evidenceshowsthat sincetheendof2008,the start oftheeconomiccrisis, publicauthorities and nationallegislators have takena rangeof measures to boost enterprise flexibility, including amendments to nationallabour law. In some countries, such as Hungary, aftera change of government (shifting totheright), thisled tothe acceleration of drasticchanges in labour law, even bypassing participatory consultations with, amongothers, the social partners, in particular thetradeunions.In otherinstances, thesestructuralreforms have been requiredor indeed forcedupon thesememberstatesby European and international institutions and organisations, suchas theEuropeanCentral Bank('ECB'), the European Commissionand the International Monetary Fund ('IMF'), the so-called Troika'. Examples areGreece,Ireland andPortugal where the reforms were 'agreed upon' betweenthis Troika and the respective governmentsin Memorandums ofUnderstanding. Inaddition, the European Union togetherwith the IMF has undertaken 'missions' toEuropeanmember states in economicdifficulties. In 2010, forexample, theywentto Latviato discussthe2011 budget withthe government, insisting thatit included measures to deliver lastingdeficitreduction, whileproviding adequatefunding forthesocial and healthsafetynets,public worksemployment , and job training to alleviatetheimpactof thecrisis on themostvulnerable partofthepopulation . Interestingly, the European Commissionhas nothad recourse to labourlaw and fundamental socialrights toascertain themaintenance ofminimumsocialstandards ; neither has itresorted to hardlawmechanisms, although ithasthelegislativecompetence to do so undertheTreaty. On thecontrary, theEuropeanUniontendstofollow itslongstanding trend ofcalling for labourmarket 'flexibilisation' (and labourlaw deregulation), as statedin a Communication in 2010: 'flexicurity policies are the best instrument to modernise labourmarkets: they must be revisited andadapted to thepost-crisis context, inorderto acceleratethepace ofreform, reducelabourmarket segmentation , supportgenderequalityand make transitions pay'. However,thereis no evidencethatthefinancial and economiccrisisis theresultof labour law provisions inthemember states. The labour law reforms (currently) being implemented in manyMemberStatesare thusjustified by the argument thatmaking labourmarkets moreflexibleis one ofthebestresponsesto thecrisis. In some countriesit consistsonly of piecemeal although significant deregulatory measures, while inothers itinvolves far-reaching overhauls ofthe wholelabourcode. Labourlaw domainsthat are mostaffected areworking time, atypical employment (fixed-term, part-timeand temporary agencywork)and theintroduction ofnewtypes ofcontracts (collective and individual), dismissal law,and collective bargaining. Indeed, in several countries fundamental changesare beingmade to industrial relations structures andprocesses whereby itisa clearpolicyand /or ambition todecentralise collective bargaining ,shifting fromnational/sectoral levelto companylevel.Examplescan be foundin Italy, Greece,Portugal, Romania andSpain.Apart from shifting theonustoother levels, there isoften the (additional) problem ofallowing lower-level bargainingoutcomesto deviateunfavourably from theprotection provided byhigher levelcollective agreements or even statutory legislation. Such collectiveagreements deal, for instance,with working timeand wages.Examplesofthelatter can be foundin France,Greece,Italyand the SlovakRepublic. Anothertrendis the adoptionof measures reviewingrepresentativeness criteria for social partners(forexample,Greece,Hungary, Italy, theNetherlands, Portugal Romania, Slovakiaand Spain) and extending what used to be trade unionprerogatives toother bodies ofworkers' representation (oftenat companylevel)(forexample , Greece,Portugal and theSlovakRepublic). Therearealso examplesofcountries - forexample Hungary andRomania - abolishing oratleast diminishing theroleofcertain(tripartite) social dialogueinstitutions , withthegovernment withdrawing from suchbodies.Thesereforms ofcollectivelabourlaw will definitely weakentrade unionrepresentation and actionatallbargaining levelsas theyaffect theverystructure of trade unionsas wellas their institutional meansofprotecting and representing workers. INTERNATIONAL union rights Page 6Volume 19Issue 22012 FOCUS □ AUSTERITY ANDTRADEUNIONRIGHTSINEUROPE Decentralisation of collectivebargaining to the lowest level weakens the level of protection (termed thesocialacquis) achievedso farbythe tradeunionsat nationaland local level,and it willaffect sectoralcollectivebargaining. It will also lowerthestandard of rights recognised so farand anchoredin legislation and collective agreements, as well as affecting fundamental employment conditions related to working time, pay, work organisation, workingenvironment andsocialprotection. The ETUI mappingexercisealso shows the lackof respectfordemocratic and participatory fundaments and procedures in passing the reforms, thusaffecting the hierarchy of social norms.For example,in...

Industrielle Beziehungen und Arbeitsbewertung unter dem „Wirtschaftswunder“ in Deutschland und Japan. Ein Vergleich zweier Gesellschaften

Abstract In the 1960s the corrective agreement system in West Germany experienced an important change. In place of the traditional system of wage regulation that is based on the classic categories of workers, namely skilled, semiskilled and unskilled workers, the system of job evaluation was now introduced into the corrective agreements. In Japan, by contrast, the system of job evaluation was abandoned in the same 1960s after a longtime trial by employers to introduce it. The present article examines this contrasting process in Germany and Japan and sheds light on the different structure of industrial relations in these countries. The historical root of this difference can be found in the 1910s20s as a formation period of modern industrial relations in each country.

The EU Services Directive, German Labour Market Regulation and Institutional Change

How does extending markets across national borders impact national institutions regulating labour markets? This paper addresses this question by analysing resistance in Germany to the European Commission’s draft Directive on an Internal Market for Services (COM(2004) 2 final/3). It demonstrates how the Commission’s initial attempt to integrate European service markets threatened to accelerate changes in the institutional structure of post-war German industrial relations. The paper shows how a broad spectrum of social and political interests in Germany united in successful opposition to this threat. It also demonstrates, however, that this resistance only postponed institutional reform in German labour markets and pushed the reform process—temporarily—from European to German legislative arenas. This study demonstrates that European market liberalisation, rather than driving the German state from labour markets, is pushing it to take a more active role in regulating employment. It also provides observations about processes of institutional change.

Industrielle Beziehungen und Arbeitsbewertung unter dem „Wirtschaftswunder“ in Deutschland und Japan. Ein Vergleich zweier GesellschaftenIndustrial Relations and Job Evaluation under the “Wirtschaftswunder” in Germany and Japan. A Comparative Study of Two Societies

In the 1960s the corrective agreement system in West Germany experienced an important change. In place of the traditional system of wage regulation that is based on the classic categories of workers, namely skilled, semiskilled and unskilled workers, the system of job evaluation was now introduced into the corrective agreements. In Japan, by contrast, the system of job evaluation was abandoned in the same 1960s after a longtime trial by employers to introduce it. The present article examines this contrasting process in Germany and Japan and sheds light on the different structure of industrial relations in these countries. The historical root of this difference can be found in the 1910s20s as a formation period of modern industrial relations in each country.