What Happened in Chattanooga?

2014. The recent vote by workers in a Volkswagen plant in Chattanooga, Tennessee to decline representation by the United Auto Workers union (UAW) highlights the differences in labor policies between the United States and Germany.

With American union membership on the decline, this was the first time that the UAW attempted to represent workers in a foreign company in over a decade, and its failure sets a precedent for the future of unions in the American South.

Looking to its successes in Germany and elsewhere, Volkswagen was in favor of creating a German-style “works council” in Chattanooga that, due to American labor laws, would require the UAW to represent workers’ interests.

This was met with mixed reviews. In particular, workers worried that voting for union representation would scare away production of a new model of SUV, despite VW’s assurances that the UAW vote would have no effect on the decision to manufacture the SUV in Chattanooga. Politics also played a role in the outcome.

In the politically conservative South, several Tennessee government officials, with the help of anti-union action committees, were able to lead a successful campaign against the union. Some lawmakers warned that VW might not receive new tax incentives to expand in the state if the UAW was successful at the VW plant.

Furthermore, many workers were reportedly happy with current wages, felt that the company treated them well, and did not want the union to damage or muddy that dynamic. The vote has left Volkswagen still looking for a way to create a works council, even without the UAW.

Employment law: Basic information

In Germany, all laws and regulations concerning work are summarised in labour law. The protection of workers plays a key role in this. For example, labour law gives you comprehensive rights in relation to your employment contract, wages and holidays.

Termination of the employment relationship

You or your employer may terminate your seasonal employment relationship early. The notice periods to be observed are stated in your employment contract. Your employment may only be terminated without notice in specific cases.

A notice of termination is only valid if it can be proven to have been handed over. This is the case when a notice of termination exists as a written document and has been signed by both parties. A notice of termination is also valid if a witness was present when notice was given or handed over as a written document. Notice of termination by email is not deemed to be written notice of termination and is therefore invalid.

Working hours

The average working hours in Germany is 8 hours per day. This can be extended to up to 10 hours per day for a short period. A rest period of 11 hours is normally prescribed between 2 shifts.

Breaks

If you work between 6 to 9 hours a day, you are entitled to a 30-minute break after no later than 6 hours. If you work more than 9 hours a day, the break is extended to 45 minutes. Labour law prohibits taking the break at the end of the day’s work in order to leave earlier. 

Breaks are not considered working time and are therefore not paid.

Holidays

Even as a seasonal worker, you are entitled to paid leave. This is at least 2 days for each month in which you work full time. The holiday pay may also be paid to you at the end of your period of employment if you have agreed this with your employer in advance.

If you work on Sundays or public holidays, your employer must offer you a corresponding number of days off in lieu within 8 weeks.

Wages

A minimum wage is mandatory for all employees in Germany. This means no employer may pay less than this hourly wage. Since 1 January 2022, the minimum wage has been EUR 9.82 per hour gross. This means before taxes and other charges are deducted from this amount.

Even if you have agreed a piecework rate with your employer, you may not earn less than the statutory minimum wage.

Your employer must also give you a pay slip. This lists the tax amounts that will be deducted from your gross wage. If your employer provides accommodation, the cost for this may also be deducted from your wages. The corresponding amount must also be shown on the pay slip.

Features of German Employment Law

Relations between German employers and employees are extensively regulated under German labor and employment law. German labor and employment law is strongly biased in favour of employees and is probably best referred to as the “employee protection law”.

German labor law

Germany has relatively strict employment and labor laws: Many provisions have a special emphasis on protecting employees. However, these laws also provide clear guidance for employers on individual employment contracts, employee benefits and entitlements, and rules around termination and dismissal.

Not climate protection

How important is sustainability in the workplace to people? The Bertelsmann Foundation had this examined and found out something amazing: The younger employees are, the more important they are about classic values such as job security, salary and collegiality. Environmental and climate protection, on the other hand, play a rather subordinate role.

Young workers in Germany take a more pragmatic view of their jobs than is often assumed. In a study by the Bertelsmann Foundation, for which 1,200 employees from various sectors were asked about what they considered to be the most important aspects of their work and their employer, 18 to 24-year-olds named job security most frequently, followed by salary and collegiality.

I quit my $120k job

I decided to quit my job after I realized these 3 lessons. Although I heard of these 3 things before, they never clicked inside my head until these events happened in my life.

YouTube comments:

“If you don’t have a dream, someone will hire you to build their dreams.”

“I think the scariest thing for most people (myself included) is leaving the security of the job that you have. When you sent have another form of income already leaving that job can be terrifying.”

“I can relate to your experiences when you told the story about the interaction with your parents. I have a similar experience and I realized this has gotten worse when I put my well being: mentally and physically on the back burner for work. The biggest turning point for me is when I started to see my parents physical changes from old age; graying of hair, memory declining and just not recovering as quickly as they used to. That’s when I realized I f’d up. The excuses of I’m too busy to see them or the free time that is being sacrificed is for what? To out-compete your colleagues or hustle more than what is expected from the job description? We are expendable as you said. I took a seat back and started to see this toxic culture that it is “ok” to work off hours or be on call at a moment’s notice EVEN when you are on vacation; it’s not ok. It’s starting to crack and wake people up. The pandemic just accelerated it and you see stories of people wanting to take their lives back by pushing for WFH or do what is expected from you. Nothing more nothing less. My point to this story is that this isn’t unique. I feel there are many of us who are feeling this way and it’s not too late to change. Just need to make a commitment and walk that path.”

Job security with a good work-life balance

Classic factors of employee motivation continue to play an important role. A new study shows that every second employee attaches great importance to a secure job. However, only around a third of those surveyed are willing to make sacrifices for this.

Job security is an important motivating factor for every second employee: 52 percent of women and 58 percent of men attach great importance to it, according to the results of the study “The future of work: A journey to 2022”. For the study, the consulting company PWC asked around 2,000 employees in Germany about their ideas about the future of work, 46 percent of whom were male and 54 percent female.

According to the study, however, only around a third of those surveyed are willing to sacrifice their work-life balance for a secure job: 36 percent of the male and only 32 percent of the female respondents say they would be permanent for the prospect of a secure job available to your employer.

Salary and Job Security

Salary is still the top priority for Germans when choosing a job. More than two thirds of those surveyed (67 percent) see remuneration as a top employer characteristic. This is the result of a nationwide, representative survey by the opinion research institute Innofact on behalf of TARGOBANK.

This means that the topic of salary has gained even more importance compared to 2017 (2017: 61 percent) when the survey was first carried out. Job security came in second place among the most important employer characteristics this year – half of those surveyed stated that this was of great importance to them.

In 2017, however, it was even more important to those surveyed at 60 percent. The location of the company is also very relevant to those surveyed: around a third attach great importance to this when choosing an employer. Awareness or the size of the company, on the other hand, still do not play a major role (around 4 percent each).