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Examines some of the radical changes in labour markets and employment relations in the former German Democratic Republic (DDR)immediately following German unification and identifies a large degree of continuity in management personnel but an almost total replacement of union officials. Concludes that, while unification has undermined some of the characteristics of the employment relations system, stronger pressures for change are arising from the impact of global competitive pressures in the German economy. The system is likely to be subject to evolutionary modification rather than radical change.

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