This book is based on a research project, funded by the Hans Bockler Stiftung, on different employee relations systems in German owned subsidiaries in the UK. The study investigated whether German firms used the liberal institutional system for employee relations in the UK as a means to escape from the heavily regulated system in German firms. The main thrust of the study was to examine the performance implications of the different types of employee relations used by German owned subsidiaries. This book examines the debate on the links between employee relation systems in multinational corporations and performance as well as the debate on convergence of employee relations systems in multinational corporations.

This volume challenges the view that unemployment is exclusively determined by structural characteristics of the labour market and the social benefit system. Macroeconomic policies and investment in capital stock are included in the analysis and are shown to have a major role to play. Wage setting in the labour market has no direct impact on employment but nominal wages set in this market affect the price level. Following mainstream recommendations with respect to labour market reforms in an environment of low growth and serious effective demand problems, may contribute to deflationary risks. Unemployment and 'structural reforms' also cause falling labour income shares and more unequal personal income distribution. These developments contribute to slow growth and rising unemployment. This is shown in applying growth models, which rely on the principle of effective demand and which also incorporate the effects of distribution struggle.

Uses new research to examine performance implications of different employee relations in German firms in the UK, Are they using the liberal institutional system for employee relations in the UK to escape the heavily regulated system in Germany? The authors explore best practice approaches common to the best performing subsidiaries.