This article discusses how both globalisation and corporate governance influence the German coordinated model of employment relations. It outlines recent developments in employment relations in the German automotive and banking industries with a particular focus on skills, staffing and pay systems. It argues that while various changes have taken place in employment relations in both industries, they remain largely within the coordinated framework. Not all the changes are directly associated with globalisation. Rather, an increasing focus on shareholder value in corporate governance has also contributed to these changes.
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