2.4.4 Industrial Relations

• The FRG allowed trade unions to negotiate with the government employers, establishing the German Federation of Trade Unions to help coordinate their actions
• Adenauer's decision to follow a policy of co-determination enabled workers to have representatives on managerial boards
• Whilst the FRG promoted agreements on social contracts, limiting pay increases, it maintained a managed economy to keep inflation and unemployment low. This led firms to invest more in modern machinery and ensure good working conditions for employees
• Progressive labour relations, where workers collaborated more readily with employers, contributed to a decrease in industrial disputes. The FRG experienced significantly fewer strike days than the US and UK