The Reconstruction of Labour Representation in Former East Germany 1989 - 1992. A Comparative Study of the Strategies of Two German Trade Unions, By W.-F. Sommer Thesis submitted for the Degree of Doctor of Philosophy The London School of Economics and Political Science University of London 1995 UMI Number: U079928 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Disscrrlation Publishing UMI U079928 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 f I+ £ S ^ 5 F 7Z77 ^Jin8o6o7/ Abstract This thesis examines the strategies applied by two German trade unions after the collapse of the GDR. It looks at the causes of stability and instability of corporatist systems and their institutions and how these maintain membership and organizational coherence. The study explores the reconstruction strategies of two contrasted West German trade unions seeking to maintain their organizational position and to protect the neo-corporatist industrial relations system that secures their survival. Their strategies for the organizational survival of the unions are determined partly by the neo-corporatist industrial relations structure and partly by their different organizational constraints. The first section looks at explanations of how encompassing trade unions in a neo-corporatist system maintain their membership and their organizational coherence. After delineating the various incentives which encompassing trade unions provide to their membership, the study examines the threats posed by the disintegration of the GDR to the provision of union services and thus to their ability to attract members. The effects of the collapse of the GDR could reduce their membership's willingness to define interests in collective terms (i.e. a favourable trade-off between inflation and unemployment). The study then examines the objectives for an intervention by the West German trade unions in the GDR in order to secure neo­ corporatism by incorporation of the East German membership within the encompassing body of the West German unions. The second section looks at the main determinants of the reconstruction process which have been the legacy of low trust in former East German industrial relations as well as the e d g e 's inadequate efforts which facilitated the intervention by the West German trade unions in the form of incorporation. The third section assesses the motives of two West German trade unions related to the reconstruction strategies of free labour representation in the GDR. Both trade unions followed the strategy of incorporating the East German workforce by narrowing the existing East-West wage gap (contractual exchange) as well as offering solidarity (diffuse exchange). In particular the motive of contractual exchange reveals the unions' desire to maintain stability within the neo-corporatist environment. As the research on corporatism rarely examines the causes of stability of corporatist systems and institutions, this thesis makes a contribution to our understanding of the strategies to maintain corporatist structures. The sudden collapse of the GDR, with its repercussions for the ERG, provides a special opportunity to analyse the strategy of corporatist institutions seeking to maintain stability. Acknowledaements The research in this thesis was made possible through the helpful comments on earlier drafts of the chapters and other advice by the members of the Industrial Relations Department at the LSE. Particularly helpful and influential were David Marsden's critical advice and guidance. Finally, the.support and encouragement of Gisela and Anubis were invaluable throughout. Table of contents Page Introduction 1. The reason for the research 12 2. The structure of the research 15 3. The methodological approach 24 4. The theory of an encompassing trade union 31 4.1. The trade union as an organization 31 4.2. Collective incentives/benefits 38 4.3. Selective incentives/benefits 73 4.4. Conclusion: The worries of the West German trade unions 85 5. The trade union decision-making and explanatory trade union strategy model 93 5.1. The classes of trade union decisions 93 5.2. The trade union strategy scenario 102 5.3. The organizational objectives and the motives for an intervention 110 5.4. Conclusion and predictive trade union strategy model 162 Page II The main determinants of the reconstruction process 169 1.1. The legacy of low trust 170 1.2. Implications of the strategies resulting from the one-way convergence of East Germany towards the West German economoic, political and social system 204 III Comparison of applied trade union strategies 224 1.1. IGCPK: Unity in accordance with West German conditions 225 1.2. IGM(W): Unification as a hostile take-over 298 1.3. Discussion of the results and conclusion 370 IV Appendix and References 382 Tables and Figures Page Figure 1: The general alternatives of trade union strategies 103 Figure 2; The financial trade-offs between encompassiveness and enhancement of membership 118 Figure 3; The relationship between the employer and the membership market related to the wage 132 Table 1: The formal significance of some DGB trade unions after a possible merger with the relevant East German sister trade union 156 Table 2: The desirability of the FDGB's representation on the establishment level 180 Table 3; The attitude of the East German labour delegates towards norms 190 Table 4: Satisfaction with the existing remuneration schemes 191 Table 5: The FDGB's influence on the intensification of work 193 Table 6: The influence of BGL representatives on workplace industrial relations 196 Table 7: The assessment of the BGL's monitoring of the statutory safety standards 201 Table 8; The political priorities of the East German population in 1990 206 8 Page Table 9: The fairness of the former East German remuneration in comparison with the remuneration of a West German colleague 212 Table 10: The dimension of trust in the FDGB leadership during the reconstructionperiod 214 Table 11: The East German labour delegates' preference regarding the type of codetermination 216 Table 12: The FDGB's reformability during the reconstruction period 218 Table 13: The economic effects of social partnership 232 Table 14: The desirability of the continuation of social partnership 234 Table 15: The assessment of the IGCPK's firm stance in the reconstruction and démocratisation process 250 Table 16: The East German labour representatives' perception of the IGCPK's information offices 251 Table 17: The desirability of the economic system in the GDR 306 Table 18: The economic effects of the IGM(W)'s collective bargaining 313 Page Table 19: The desirability of the IGM(W)'s conduct of collective bargaining with reference to the economic outcome 314 Table 20: The motives for the set-up of plant partnerships 317 Table 21: The IGM(W) membership's perception of undercutting 321 10 Index of Abbreviations ADGB Allgemeiner Deutscher Gewerkschaftsbund (General German Trade Union Federation until 1933) AGB Arbeitsgesetzbuch der DDR (Labour Law of the former GDR) AFG Arbeitsforderungsgesetz (Work Promotion Law) AFL American Labour Federation BAVC Bundesarbeitgeberverband Chemie (Chemical Employers' Association) BetrVG Betriebsverfassungsgesetz (Works Constitution Law) BGAG DGB Financial Holding Company BGB Bürgerliches Gesetzbuch der BRD (Civil Legal Code) BGL Betriebsgewergschaftsleitung (Former East German Plant Trade Union Shop) BGO Betriebsgewerkschaftsorganization (FDGB's primary organization in large companies) CDU Christlich Demokratische Union Deutschlands (German Christian Democratic Party) CIO Amerian Labour Federation coop DGB-owned food retailing company DGB Deutscher Gewerkschaftsbund (German Trade Union Federation) FDJ Freie Deutsche Jugend (Former East German Youth Organization) FDGB Freier Deutscher Gewerkschaftsbund (Former East German Trade Union Federation) FRG Federal Republic of Germany GDR German Democratic Republic 11 IGM(E) Industriegewerkschaft Metal1 der DDR (East German Metalworkers' Trade Union) IGM(W) Industriegewerkschaft Metal1 der BRD (West German Metalworkers' Trade Union) IGCPK Industriegewerkschaft Chemie-Papier-Keramik (Chemical/ Paper and Ceramic Workers' Trade Union) IGCGK Industriegewerkschaft Chemie-Glas-Keramik (Former East German Chemical, Glass and Ceramic Workers' Trade Union) IG Bergbau und Energie Industriegewerkschaft Bergbau und Energie (Minerworkers' Trade Union) lUG Initiative UnabhSngiger Gewerkschaften (Initiative of Independent Trade Unions, East Germany) LO Swedish Federation of Unions ÔTV Gewerkschaft ôffentlicher Dienst Transport und Verkehr (Public Service and Transport Workers' Union) PDS Partei des Demokratischen Sozialismus (Party of Democratic Socialism) SED Sozialistische Einheitspartei Deutschlands (former ruling East German Socialist Unified Party) SPD Sozialdemokratische Partei Deutschlands (German Social Democratic Party) STASI Staatssicherheit (former East German Secret Police) TCO Swedish Central Organization of Salaried Employees WWSU Wirtschafts- Wahrungs- und Sozialunion