Answer to Question #197994 in Economics for aryah

Question

Explain any one problem that could occur in Germany since trade unions are still very powerful there.

Answer 1

Within the framework of this work, it is not possible to reflect all the diversity of activities of German trade unions, therefore, we focus on the issues of participation of trade unions in the regulation of labor conflicts, analysis of the economic and legal conditions of their work.

Currently, the German trade unions have the following as their main goals:

ensuring economic growth;

focus on environmental issues - unions are demanding regulatory frameworks and government structural policies that force businesses to adopt clean technologies.

Trade unions in Germany, like all trade unions in the world, are independent of the state and political parties. However, at the same time, they are by no means apolitical and actively participate in many issues of social development.

The trade unions have a branch principle: they accept into their ranks workers and employees of a specific branch of the economy (or even several branches), regardless of the profession in which a person works at the enterprise. For example, a chauffeur and accountant working in a print shop might be members of a media union.

In Germany, there is no “closed shop” system, i.e. enterprises where, by agreement between trade unions and employers, only persons who are members of a trade union are hired. The degree of organization of hired workers is also very different, i.e. the share of trade union members among employees in various sectors of the economy varies markedly.

Trade union membership is voluntary. To ensure the functioning of organizations, their members pay contributions in the amount of 1% of the monthly "gross income" 1Gross income - income before taxes. The income tax rate in Germany is very high (up to 50%), as a result, income before taxes and net income are very different from each other. Trade unions do not receive any subsidies from the state to carry out their activities. Cash receipts from contributions go to the maintenance of the trade union apparatus, to provide legal protection for members in case of litigation with employers, to increase the level of trade union and socio-political training of both trade union members and their functionaries, to propaganda activities and to create a strike fund to finance strike struggle. For example, in the event of a strike, the metalworkers' union pays each striker a weekly allowance that is 12 times the monthly contribution he actually paid. Financial independence in conflict situations is a decisive condition for maintaining one's own independence. In the trade unions belonging to the UNP (Association of German Trade Unions), to fulfill the tasks they face, about 13 thousand employees work on a permanent basis.

Every four years, congresses of branch trade unions and UNP are convened, at which the principal directions of current and future policy are determined and the board is elected. Relevant conferences are regularly held at the local and district levels. A strong orientation of trade union policies towards the interests of their members is ensured through regular elections of their bodies and democratic structure of organizations, voluntary membership, and the need to obtain active support from members of trade unions during demonstrations and strikes.

The question of the strike is decided by the members of the trade unions in a secret ballot. Only if, in this vote, at least 75% of union members affected by the tariff conflict are in favor of a strike, can unions call for it. The need to obtain 3/4 of the votes was established by the trade unions themselves in their charters on the basis that a strike struggle can be successful only with the high solidarity of its participants and without a large number of strikebreakers. On the other hand, to conclude a tariff contract under the pressure of a strike, the consent of at least 25% of the voting members is required, which means that no more than 75% of union members are in favor of continuing the strike.