Every decision is considered to be adjustable, as soon as new facts emerge or situation changes. (3)
2. Management Conceptions and Practice
It is recognized that the competitive strength of Germany lies in its only natural resource – the people – and on their ability to utilize technology. In the last 50 years, a strong emphasis was put on training and developing the staff.(2) Further, perhaps due to the negative experience of Nazi regime, employee involvement and consent in decision-making is omnipresent in the German system. The need for unity and consensus that developed in the early post-war period binding the whole nation in rebuilding its country and suppressing inequalities still reflects in relatively small wage differences and solidarity social system. This background is reflected in German organizational structures and managerial practice. Management does not act independently to that extent as in the US. Under the extensive system of co-determination, management has to consult many issues with employees` representatives, as are work councils and employees` representatives in the supervisory boards. Law reserves one third of supervisory board places for employee representatives. (2)
3. Labor Legislation
Important differences between the US and Europe lies in the legal system. While Europe adheres to statutory law, the US system is based on common law, with emphasis on court decision taking power of precedence. This difference reflects also in the nature of labor relations. Also not to the extent as in the other European countries, in Germany are the basic conditions of work relations stipulated by law. The judiciary power over labor related issues is rendered to the so called work courts (Arbeitsgericht). The most essential rules in regard to work and pay conditions stem from collective negotiations between industrial partners. However, in the atmosphere of cooperation, parties seldom resort to the courts in labor related issues. (3)
On the other hand in the US, except some statutory laws, e.g. to prohibit child work or assure equal employment opportunities, are missing. Since Americans are very sensitive to their personal rights and discrimination, what applies also to labor relations, in case of conflict they tend to resort to the court. However, since the legal expenses are high, pre-court negotiation plays an important role in labor related disputes. Consequently, employment conditions tend to have diverse character. 4. Industrial Relations
Unionization of German industry is traditionally high.