Bargained Wages in Decentralized Wage-Setting Regimes

Collective wage agreements still play an important role in the German wage bargaining system. However, there is a critical debate in Germany whether collective agreements deliver the flexibility needed by firms to adjust to the needs of international competition and technological change. In recent years, the social partners in some industries have responded to this possible lack of flexibility by introducing so called opening clauses into their collective bargaining agreements. These allow firms to deviate from their collective agreement under certain conditions. The aim of this paper is to empirically analyze the prevalence of opening clauses in the German manufacturing sector and their impact on the wage structure. To provide a basis for the empirical analyses, a survey on the existence and intensity of opening clauses in central collective agreements has been conducted. Thereby, these sectoral data about opening clauses are exactly combined with those from the German Structure of Earnings Survey 1995 and 2001, a linked employer-employee dataset from German official statistics. The results show the number of collective bargaining agreements containing opening clauses increasing remarkably since 1991. Furthermore, the implementation of opening clauses into collective contracts creates significant effects on wages.

Bargained Wages in Decentralized Wage-Setting Regimes

Collective wage agreements still play an important role in the German wage bargaining system. However, there is a critical debate in Germany whether collective agreements deliver the flexibility needed by firms to adjust to the needs of international competition and technological change. In recent years, the social partners in some industries have responded to this possible lack of flexibility by introducing so called opening clauses into their collective bargaining agreements. These allow firms to deviate from their collective agreement under certain conditions. The aim of this paper is to empirically analyze the prevalence of opening clauses in the German manufacturing sector and their impact on the wage structure. To provide a basis for the empirical analyses, a survey on the existence and intensity of opening clauses in central collective agreements has been conducted. Thereby, these sectoral data about opening clauses are exactly combined with those from the German Structure of Earnings Survey 1995 and 2001, a linked employer-employee dataset from German official statistics. The results show the number of collective bargaining agreements containing opening clauses increasing remarkably since 1991. Furthermore, the implementation of opening clauses into collective contracts creates significant effects on wages.opening clauses; collective bargaining; wage structure

Impact of Opening Clauses on Bargained Wages

This paper is an analysis of the impact of different bargaining regimes on firm-specific wages and wage dispersion. In recent years, firms in Germany favored more flexible than collective bargained wages. Opening clauses were introduced to combine collective bargaining and flexible adaptation of e.g. wages to firm-specific needs. In an own survey, it was evaluated whether central collective agreements contain these opening clauses. Then, the gathered information about opening clauses were linked to the Salary and Wage Structure Survey 2001. Focussing on central bargaining agreements, it has been tested whether bargained wages and wage dispersion differ under opened central bargaining coverage from that of non-opened central bargaining regimes. While wages with collective bargaining regimes tend to be higher, it could be found that wage dispersion under opened central collective bargaining coverage is slightly wider compared to non-opened central bargaining regime.wages and wage dispersion, opening clauses, collective bargaining

What a difference trade makes: Export activity and the flexibility of collective bargaining agreements

"The prevalence of opening clauses in collective bargaining agreements may indicate a tendency towards more decentralised wage setting. Increasing competition on international product markets is assumed to be one reason for the decentralisation of collective bargaining. Current theoretical explanations focus merely on firm-level differences in the exposure to international competition. Unlike non-exporting firms, exporters are assumed to be exposed to international competition and are therefore in need of greater wage flexibility. However, incorporating stylised facts about exporting firms, new theoretical trade models suggest that firms differ from each other in how they adjust to increasing competition depending on their export behaviour as a measure of productivity. While large, highly productive exporters expand into new markets, small, low-productive non-exporters are threatened by import competition. Based on a trade model by Bernard et al. (2003), we are able to explain verbally how a decentralisation of wage bargaining arises due to different labour demand reactions of exporters and non-exporters. In contrast to the result assuming differences in the exposure to international competition, we find non-exporters to require greater wage flexibility. As the introduction of opening clauses increases wage flexibility at firm level, we examine empirically whether exporters or non-exporters have a higher probability of using opening clauses. Based on IAB establishment data covering the western German manufacturing sector, our results suggest that firms exporting to EMU countries - but not exporters in general - have a lower propensity for using opening clauses than non-exporters." (Author's abstract, IAB-Doku) ((en)) Additional Information Kurzfassung (deutsch) Executive summary (English)Tarifvertrag, Öffnungsklausel, Tarifverhandlungen, Dezentralisation, internationaler Wettbewerb, Wettbewerbsfähigkeit, Lohnflexibilität, IAB-Betriebspanel, verarbeitendes Gewerbe, Außenhandel, Export - Auswirkungen, Westdeutschland, Bundesrepublik Deutschland

Tarifliche Öffnungsklauseln : Verbreitung, Inanspruchnahme und Bedeutung

Bei einer repräsentativen Befragung im Rahmen des IAB-Betriebspanels 2005 gaben 13 Prozent der Betriebe mit Tarifbindung an, dass für sie Öffnungsklauseln im Tarifvertrag bestehen (viele weitere wussten darüber nicht Bescheid). Rund die Hälfte dieser Betriebe hatte davon Gebrauch gemacht. Unter den genutzten Öffnungsklauseln dominierten solche zur Arbeitszeitanpassung, während Öffnungsklauseln zur Absenkung der (nominalen oder realen) Entlohnung deutlich seltener in Anspruch genommen wurden. Betriebe mit einer guten oder sehr guten Ertragslage machten seltener Gebrauch von Öffnungsklauseln beider Art. Durch eine bessere Aufklärung der Betriebe über bestehende Öffnungsklauseln sowie durch deren verstärkte Einführung könnten die Tarifparteien die Akzeptanz des deutschen Lohnfindungssystems verbessern und die Tarifflucht bremsen. -- In a representative survey conducted by the IAB Establishment Panel in 2005, 13 percent of establishments covered by collective bargaining said that there existed opening clauses in their collective agreements (many more did not know). About one-half of these establishments had made use of such opening clauses. The majority of opening clauses in use concerned working-time adjustments, whereas opening clauses that allowed reductions in (nominal or real) wages were applied less frequently. Establishments with a good or very good profit situation were less likely to make use of opening clauses of either sort. By informing establishments about existing opening clauses and by introducing additional clauses, the social partners could improve the acceptance of the German system of collective bargaining and reduce firms? propensity to leave the system.Öffnungsklausel,Tarifpolitik,Lohnsenkung,Arbeitszeit

What a Difference Trade Makes - Export Activity and the Flexibility of Collective Bargaining Agreements

The prevalence of opening clauses in collective bargaining agreements may indicate a tendency to a higher decentralised wage settlement. Increasing competition on international product markets is assumed to be one reason for wage-setting decentralisation, whereas theoretical explanations focus currently on the change of production structure and the impact of exogenous shocks. Incorporating stylised facts about exporting firms, new trade models suggest a different way of adjustment to increasing competition depending on a firm's nature. While the most productive exporters expand into new markets, small, less productive non-exporters are threatened by import competition. Based on the model from Bernard et al. (2003), we apply the theoretical implications to explain why decentralisation in bargaining may arise. We examine in a second step whether small, less productive, non-exporting firms paying low average wages, possess a higher propensity to use opening clauses than more productive, large exporters with a high wage level. Based on IAB Establishment Data covering the German Manufacturing, our results indicate that firms exporting to EMU countries -- but not exporters in general -- have a lower propensity of using opening clauses than non-exporters. However, inconsistent with theory, slight evidence suggests a rising propensity with increasing firm size and increasing wage level.trade model;opening clauses; collective bargaining;

What a Difference Trade Makes - Export Activity and the Flexibility of Collective Bargaining Agreements

The prevalence of opening clauses in collective bargaining agreements may indicate a tendency to a higher decentralised wage settlement. Increasing competition on international product markets is assumed to be one reason for wage-setting decentralisation, whereas theoretical explanations focus currently on the change of production structure and the impact of exogenous shocks. Incorporating stylised facts about exporting firms, new trade models suggest a different way of adjustment to increasing competition depending on a firm's nature. While the most productive exporters expand into new markets, small, less productive non-exporters are threatened by import competition. Based on the model from Bernard et al. (2003), we apply the theoretical implications to explain why decentralisation in bargaining may arise. We examine in a second step whether small, less productive, non-exporting firms paying low average wages, possess a higher propensity to use opening clauses than more productive, large exporters with a high wage level. Based on IAB Establishment Data covering the German Manufacturing, our results indicate that firms exporting to EMU countries -- but not exporters in general -- have a lower propensity of using opening clauses than non-exporters. However, inconsistent with theory, slight evidence suggests a rising propensity with increasing firm size and increasing wage level.trade model;opening clauses; collective bargaining;

Bargained wages in decentralized wage-setting regimes

Collective wage agreements still play an important role in the German wage bargaining system. However, there is a critical debate in Germany whether collective agreements deliver the flexibility needed by firms to adjust to the needs of international competition and technological change. In recent years, the social partners in some industries have responded to this possible lack of flexibility by introducing so called opening clauses into their collective bargaining agreements. These allow firms to deviate from their collective agreement under certain conditions. The aim of this paper is to empirically analyze the prevalence of opening clauses in the German manufacturing sector and their impact on the wage structure. To provide a basis for the empirical analyses, a survey on the existence and intensity of opening clauses in central collective agreements has been conducted. Thereby, these sectoral data about opening clauses are exactly combined with those from the German Structure of Earnings Survey 1995 and 2001, a linked employer-employee dataset from German official statistics. The results show the number of collective bargaining agreements containing opening clauses increasing remarkably since 1991. Furthermore, the implementation of opening clauses into collective contracts creates significant effects on wages.Flächentarifverträge spielen im deutschen System der gemischten Lohnbildung noch immer eine bedeutende Rolle. Ob die zentral verhandelten Verträge den Betrieben ausreichende Möglichkeiten bieten, Löhne und Arbeitszeit an die betrieblichen Rahmenbedingungen anzupassen, ist jedoch seit geraumer Zeit Gegenstand einer zwischen Arbeitgebern und Gewerkschaften kontrovers geführten Debatte. Flexible Anpassungen an die betriebliche Ebene sind gerade vor dem Hintergrund des internationalen Wettbewerbs und technologischer Veränderungen erforderlich. Seit den 90er Jahren werden daher die kollektiven Tarifverträge zunehmend dadurch flexibilisiert, dass Öffnungs- und Härteklauseln vereinbart werden, die es den Betrieben erlauben, vom Tarifvertrag abweichende Regelungen zu treffen. Ziel dieser Studie ist es, das Vorhandensein von Öffnungsklauseln im Produzierenden Gewerbe zu erfassen und die Auswirkungen auf die Lohnstruktur zu untersuchen. Als Daten stehen Ergebnisse einer eigenen Erhebung zu Existenz und Grad der tarifvertraglichen Öffnung in verschiedenen Tarifbereichen zur Verfügung. Diese werden der Gehalts- und Lohnstrukturerhebung 1995 und 2001 exakt zugespielt. Im Ergebnis zeigt sich, dass die Zahl der Flächentarifverträge, die Öffnungsklauseln vorsehen, seit 1991 stark angestiegen ist. Zudem lassen sich für die Einführung von Öffnungsklauseln zwischen 1995 und 2001 signifikante Lohneffekte beobachten

Tarifliche Öffnungsklauseln : Verbreitung, Inanspruchnahme und Bedeutung

Bei einer repräsentativen Befragung im Rahmen des IAB-Betriebspanels 2005 gaben 13 Prozent der Betriebe mit Tarifbindung an, dass für sie Öffnungsklauseln im Tarifvertrag bestehen (viele weitere wussten darüber nicht Bescheid). Rund die Hälfte dieser Betriebe hatte davon Gebrauch gemacht. Unter den genutzten Öffnungsklauseln dominierten solche zur Arbeitszeitanpassung, während Öffnungsklauseln zur Absenkung der (nominalen oder realen) Entlohnung deutlich seltener in Anspruch genommen wurden. Betriebe mit einer guten oder sehr guten Ertragslage machten seltener Gebrauch von Öffnungsklauseln beider Art. Durch eine bessere Aufklärung der Betriebe über bestehende Öffnungsklauseln sowie durch deren verstärkte Einführung könnten die Tarifparteien die Akzeptanz des deutschen Lohnfindungssystems verbessern und die Tarifflucht bremsen.In a representative survey conducted by the IAB Establishment Panel in 2005, 13 percent of establishments covered by collective bargaining said that there existed opening clauses in their collective agreements (many more did not know). About one-half of these establishments had made use of such opening clauses. The majority of opening clauses in use concerned working-time adjustments, whereas opening clauses that allowed reductions in (nominal or real) wages were applied less frequently. Establishments with a good or very good profit situation were less likely to make use of opening clauses of either sort. By informing establishments about existing opening clauses and by introducing additional clauses, the social partners could improve the acceptance of the German system of collective bargaining and reduce firms' propensity to leave the system

A discourse analysis of e-mail messages in a Malaysian Business Community

The study attempts to investigate recurrent grammatical features and functions of electronic mail discourse in a selected business community, comprising executives in a Malaysian public limited company. It also examines whether the electronic mail system has influenced language forms in the executives' e-mail discourse. Differences between language in the e-mail discourse and language in conventional business writing are explored too. The corpus comprises 102 electronic mail messages from the executives' routine communication in work contexts. The study examines grammatical features, communicative functions and discourse features of the messages. Findings reveal a predominance of main clauses in imperative and declarative moods, and subordinate clauses denoting purpose and reason, reflecting that e-mail communication of the community is used more for requesting and informing, and less for enquiring. Other discourse features like opening salutation, opening statement, closing statement and closing salutation are also found in the e-mail messages although they are not compulsory for such a communication. It is hoped that the language features and functions, and other discourse features identified in the e-mail communication of the business community would contribute towards pedagogy and course design for English for Business Communication, as well as for e-mail communication at the workplace