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Relationship Between Germany And Germany

Decent Essays

The actors and/or parties of employment relationship in Germany after 1990 are still the same as before, consisting of employers, employees and the government in 2010s. National policy consideration and economic trends During Kohl’s chancellorship (1982-1998), the 1985 Employment Promotion Act created law that permitted employers to issue fixed-term contracts without valid reasons. This law was strongly opposed by trade unions and Social Democrats who were the government composition at the time. Kohl’s era has given many flexibility to ‘marginal’ workers (workers without secure employment). This includes the increased of take-up of part-time work at low weekly hours. Employers perceived these contract as strategic option to circumvent social insurance contributions an establish low wage segment of the labour market. In contrast, ‘core’ workers were hardly affected by this law. Flexibility for core workers only arises after the reunification and the steep rise in unemployment in 1990. There was increasing pressure for change due to the structural problems of the East Germany economy. In the following of the 1994 recession, tor educe the cost of unemployment insurance, replacement rates were lowered. Unemployment rose further in subsequent 2 years, this was seen as an obstacle to the government re-election. Social insurance and dismissal protection configuration in 1997 led to the parliamentary opposition and trade unions’ view on it as massive cuts. As a result, the Social

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