Forcing German managers to focus on productivity

Purpose – Aims to test Walton and McKersie’s theory on labour negotiations, specifically in the case of German car manufacturers. Design/methodology/approach – The research is based on interviews with industrial actors in Germany’s car industry – an empirical case study. Findings – The article explains the structural force behind the managerial drive towards production. While German managers act at an enterprise level, a structural force has been responsible for the success of Germany’s post-WW II manufacturing. Germany’s collective bargaining structure removed wage and working-time bargaining from local management and opened four managerial options: production, productivity, innovation, and quality. This structure forced management to focus on these four options because they lie within the realm of management prerogative. The article explains how structural divisions between intra-enterprise level arrangements and extra-enterprise level collective bargaining at a conceptual level can best be understood. Originality/value – Argues that a regional and industry collective bargaining structure has supported the success of a competitive car industry in Germany.