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Collective Agreement Between Trade Union And Employer

The effectiveness of the orientation agreements depends on the ability and willingness of the negotiators of the model agreement to “internalise” the pressure of international competitiveness and the evolution of labour markets. This could be the case if the internationally exposed sector takes the lead. The stability of the models, including, where appropriate, wage moderation, depends on a degree of centralization and authority that may be less than centralized wage negotiations, but which remains impressive. Nowhere is this more evident than in Austria, where both trade unions and employers have an absolute monopoly of representation, supported by law and therefore cannot be challenged from the outside. In Germany, this is the very power of IG Metall in combination with the size, success and prestige of the automotive industry…

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