The works constitution act of 1972 lays dawn the structural relationship between workers and the employers in any company with five or more employees; alsoensures the welfare of the employees in the company. The formation of work committees guaranteed too the employee involvement, the selection process for members of this committee is done by employeesin a democratic process and the members of the executive staff do not sit on this board. Generally, work committees operate on behalf of employees ´daily concerns, such as working hours, vacation time,job descriptions, vocational training, safety regulations, and, the most important, dismissals. The work committees represents an employee in any dispute with the management, and terminating anemployees for incompetence or for discipline-related reason in difficult.
Employers and employees usually contribute equally with the heavy burdens on the percentage of their profits to providefor pension, unemployment insurance and health insurance. More than 90 percent of the German population belongs to the healthcare system provide for by the government. German employers must alsocover half the benefits contributions for sick leave, maternity leave, parental leave, and holidays. Under federal law, all employees receive a minimum of twenty days paid leave per year.
Labor UnionsGerman trade unions have exercised considerable power. They are organized by industry and accept workers within that industry or economic sector regardless of the work they perform. German unions arenot connected to any political party and do not have religious affiliations. The largest union is the DGB (Deutscher Gewerkschaftsbund) with about nine million members. Another, the DAG (DeutscheAngestellten-Gewerkschaft), tends to the interest of salaried staff in all industries. The DBB (Deutscher Beamtenbund) is a union of civil servants and the only union prohibited from going on strike. In...