Swedish and German Industrial Relations Systems

The Swedish Social Model

The Swedish model has been one of the paradigms of the European social model. The Swedish model has been characterized as a corporatist model, based on a compromise between classes, the hegemony of social democracy, and a high degree of institutionalization and juridification of industrial relations.

Collective Bargaining and Codetermination

Their collective bargaining system consists of the following levels:

• The private sector
• The public sector law
• Local administration

A determinant of codetermination law states that employers have to negotiate with union representatives any measure of importance affecting the company. This model is being affected by the internationalization strategies and flexible production of large enterprises. These strategies prevent the reconstruction of the Swedish model based on a solidarity wage policy for full employment; instead, it is being promoted through decentralized bargaining, setting up arrangements and performance-related pay.

The German Social Model

The German model of relations is founded on the basis of a pact between capital, the state, and work for the stability and growth of the economic system.

Employer and Union Organizations

German employers are organized around:

• The Federation of German Industry
• Chambers of Industry and Commerce
• The Federal Association of German Employers (which corresponds to the representation of employers in collective bargaining)

The unions, for their part, are organized in the Confederation of German Trade Unions, a unitary, hegemonic, social-democratic confederation. In addition to this confederation (which organizes around a third of workers), there is a union of tables (corporate), other officials, and some organizations of a corporatist nature.

Workplace Representation and Juridification

The collective bargaining system dominates the sectoral level, while at the enterprise level, there are two types of workplace representation:

1. Union representation on the supervisory boards of large companies
2. Enterprise committees with extensive information and co-management prerogatives

It is a model characterized by a high degree of juridification, which regulates issues such as dismissal, working time, holidays, or security conditions.