Tackling the crisis through concession bargaining: evidence from five German companies

Purpose – This paper aims to present an analysis of the nature and drivers of company-level concession bargaining during the financial crisis 2008-10 in Germany. Design/methodology/approach – The paper is based on five company case studies. Data collection methods include document analysis and semi-structured interviews. Findings – Using the five cases, it was possible to identify different ways in which companies were affected by the financial crisis itself, by various company-level adjustment strategies, and by various implications of the crisis and the collective agreements resulting from it. The author found that company-level social partners, supported by public policies, were able to avoid redundancies and keep employees in work, while helping the company to survive. Practical implications – The findings show that social partners at company level are able to agree on cooperative solutions to reduce labour costs in order to ensure the company's viability. Originality/value – The findings are important for understanding key aspects of the German “job miracle” both during and after the global financial crisis.