EMPLOYABILITY AND SECURITY IN A FLEXIBLE GLOBAL LABOUR MARKET Trust is needed on both sides According to Mr Kluge, a‘trust contract’ lies at the heart of the management-works council relationship.‘Co-determination may be a way for workers to embrace new practices and new forms of human resources management. For example, if a company wants some kind of change for cost reasons, the works council is more likely to approve a change, even without prior agreement, if a bond of trust already exists between employers and the council.’ However, there are companies where management and workers co-operate without a works council structure. For example, one software company with over 1,000 workers does not have a works council.‘They maintain it is not necessary for the new economy and that the company culture promotes trust. Representation is relaxed. If asked, people see the structure as a quasi-works council and say that they can always form a real works council later.’ Mr Kluge believes that these developments in Germany are important for future trade union strategies. It is clear that autonomy in the workplace will grow, but at present this does not mean that employees are – or can be – responsible for all aspects of that future; they need some security of income. Trade unions can provide advice, consultation, coaching and help, particularly in areas such as health and performance related pay. Human resources management must also be open to different ways of approaching old problems. Trade unions will have to be taken seriously but at the same time will have to perform new and unusual tasks. The methods and principles of consultation, information and co-determination will remain.‘Corporate governance and co-determination can co­exist. There are some examples outside the German model as well as traditional ones in Germany. But all these examples are in larger companies, not in the small- or medium­sized industrial sector, nor in financial services.’ The EU directive on works councils and information could become the catalyst for discussion of these developments.‘We in Germany believe we have a good law for co­determination. This is not the case in Britain. We need to create a flexible way of handling conflict. But the common challenge for all trade unions in Europe will be to understand the workplace of the future, to balance autonomy and responsibility, and to keep a strong position within labour markets as qualified and knowledge-based workers increase in number. It may be the destiny of workers to suffer more stress, but companies will also need to invest more in their employees.’ 19 © Anglo-German Foundation for the Study of Industrial Society