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While Germany’s employment relations are commonly seen as a high value added trust relationship built around the well publicised “new production concepts”, this paper aims to show that there is also another side to Germany’s ER. Using a detailed case study of the shipping industry, the authors show how the implementation of the International Ship Register during the late 1980s and 1990s challenged Germany’s traditional system of employment relations and regulatory framework. The authors conclude that evidence from the shipping industry illustrates a strong departure from Germany’s long‐established employment relations, where deregulation of shipping and labour law has led to the adoption of a “low road” approach.

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