Transcript Germany and Netherlands

Germany and
Netherlands
Introduction

Germany and Netherlands created European Economic
Community in 1957 in Rome

Are influential members of Europe Union

Adopted euro in 2002

Germany 3 820 billions GDP 4 in the world (2014)

Netherlands 880 billions GDP 17 in the world (2014)
Economics



Both

Industrialized countries

Limited natural resources  importations represent a big part of the economy
Germany

Economy dominated by large industrial organizations

Majority of the workforce are employed by small and medium company

Among the world’s largest industrial producers

Economy growth in the recent years
Netherlands

Producer of agricultural products

Hard hit by the international financial crises of 2008
Politics

Germany
 Federal
states
 Federal
president, democratically elected
2

chambers
Netherlands
 Constitutional
 12
monarchy
self-governing provinces
 The
monarch appoints the leader of the majority party
as prime minister
Culture

Germany and Dutch known for
 Strong
desire for ordering their time
 Punctuality
 Religions
and social tolerance
 Emphasis
 High
moral value
 Freedom

on self-realization
expression
Netherlands
 42%
population have no religion
 Permits:
Use of drugs, Same sex-marriage, Euthanasia
Larbour market trends
Country
Agricult
ure %
Industry %
Services
%
Germany
 Most populated country
in west Europe
Germany
2,4
29,7
67,8
 Most employed in
Netherlands 2,0
23,4
75,6
industry 29,7% compare
to other European
country
 Netherlands
• Immigrant workers
 17 millions people
• Germany has the third highest
 Workforce of 7,71 millions
number of migrants in the world
 Low rates of unemployment
in both country
• Nertherlands decided to restricte

entry to workers from new members
of UE
Equal opportunities and diversity



In both
 Discrimination is forbidden by law
 Still differences between men and women
Germany
 Introduces work-life balance and family-friendly employment
policies
 Women participation increase from 55,3% in 1995 to 59,6% in
2005
Netherlands
 Equal opportunities law
 Equal pay checklist at the organizational level
 Women participation increase from 63,5 in 2000 to 66,4 in 2005
Older versus younger workers

Both have growing population of older people and at the same time an increase of
youth unemployment

20,3% German population over 65 years

15% nertherlands population over 64 years

Introduced legislation to address the problem
Country
0-14
years
15-64
years
Over 65
Median
years
Life
expectanc
y
Germany
13,7
66,1
20,3
44,3
79,26
Netherlands
17,4
67,7
14,9
40,8
79,4
Strategic management

Flexible working practices privileged and purchased by
a lots of company in the both country

Dutch economy has been labelled the « first part-time »
economy in the world

That encourages women and wen who needed to work
flexibly
Managing Human ressources

Recruitment regulated in both

In Germany by Federal Labour Department
 Intern
recruitment encouraged by law
 Transfer

between to department often
In Netherlands by the Privacy Code for Recruitment and
Selection
 Specifies

rights of applicants
Selection

Number test used to select new employs and transfers between
two jobs

Germany encourages references

Netherlands prefers application form

Job training are also important
Training and development

Employers expect to have training plans and to give
employees the opportunity to be trained to build their
carreers

Germany spends 70 millions € each years in education
 Employers
spend between 3 and 8% of their annual
age bills on trainings

Both country are well educated and practice a lot
vocational training

MBA not well known by company but most of managers
ask to pass them during their career
Rewards and remuneration:

Are influenced by federal and national collectives.

The difference between the highest and lowest salary:

Germany and Netherlands : 2.5%

UK : 3.4 %

France : 3.08%

Wage earners are rewarded with high salaries.

Employees are considered as a valuable asset.
The minimum wage

Germany does not have and doesn’t impose minimum
wages.

On the contrary the Netherlands represents a minimum
wage of 1.357 euros per month since 2008, which is
variable according to the age of the person.
Allowances and benefits

Companies provide their staff with:
 Sick
pay
 Holiday
pay
 Travelling
allowances
 Child-care
 Career
break schemes
 Company

allowances
doctors
These allowances and benefits have known some
internal changes.
Employee relations

They are characterized by social partnership in both
countries.

Laws that regulate employee relations in both countries
matches the EU directives.
Trade union

Trade unions enhanced the developement and the
industrialization in Germany, back in time.

Trade union density 1999-2008 (%) Germany and
Netherlands:
Country
1999 2000
2001
2002
2003
2004
2005
2006
2007
2008
Germany
25.3
24.6
23.7
23.5
23
22.2
21.6.
20.7
19.9
19.1
Netherlands 24.6
22.6
21.9
21.7
21.2
21.3
21
20.4
19.8
18.9
Source OECD,2009.
Works councils

Co-determination in Germany and self-determination in the
Netherlands follow the strategic feature of the Germanic approach
to management.

The main characteristics of works councils, according to Fürstenberg
are:

They represent all employees

They have the right to information, consultation and co-determination

They cannot take industrial action or call to a strike.

They are involved in a wide range of issues such as :
 daily
working hours and breaks, the fixing of piece rates, pay systems, works
discipline, temporary short-term or overtime work etc.
Collective bargaining

In Germany : the legal framework is provided by the German collective
Agreements.

Collective bargaining is conducted at regional and industrial levels.

The collective agreement act ( WCAO) was issued in 1927 an changed 2002.
The recent developments are :


The extension of collective agreements.

The decentralization of collective bargaining:
 Those
on issues that are agreed at the central or sector-wide levels.
 Those
that apply only to specific sub-sectors for specific provisions.
 Those
that are company-specific agreements
Individual workers agreements have also been applied in what is called
« cafeteria » agreements.

Industrial Action

Strikes are permitted in Germany and in the Netherlands.
Settlement of industrial disputes

The dispute can be of interest or of right.
 Disputes
of interest are referred to a voluntary mediation
procedure.
 Disputes of right result from interpretation of a collective
agreement
Conclusion
Germany
Netherlands
Federal democracy
Constitutional monarchy
Minimum salary
Minimum age working : 15 years
Minimum age working : 16 years
Full-time umployment : 36 years
Full-time umployment : 38 years
Midian age: 43.8 years
Midian age : 40 years
Conciliate board
Mediation panel