Strategy For The Industrial Location “New Federal States” : Germany

The goal of the Federal Government continues to be the building of a productive economy in eastern Germany which can hold its own in the marketplace and which offers sufficient employment and income opportunities.

Of foremost importance is alleviation of the problems besetting the labor market. This will require tremendous effort on the part of the business community, the unions and the public sector in the future. Through a “Joint Initiative for More Jobs in Eastern Germany” concluded in May 1997 by all parties involved, the level of employment is to be stabilized in 1997 and - as was the case in 1994 and 1995 - 100,000 new jobs are to be established each year thereafter.

The parties to collective agreements intend to demonstrate more flexibility. Especially by opening up collective agreements, more latitude is to be created for agreements with individual firms on such matters as more flexible working hours, greater availability of part-time jobs, participation by employees in productive property, or hardship case arrangements for firms in difficulty.