RE-IMAGINING

WORK

WHITE
PAPER
W O R K 4 .0

FEDERAL MINISTRY OF LABOUR AND SOCIAL AFFAIRS

CONTENTS
FOREWORD BY FEDERAL MINISTER ANDREA NAHLES . . . . . . . . . . . . . . . . . . . . . . . . . . 4

SUMMARY OF RESULTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

KEY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

1. DRIVERS AND TRENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

1.1 Digitalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.2 Globalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
1.3 Demography and the future labour supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
1.4 Cultural change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

2. CHALLENGES PRESENTED BY WORK 4.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

2.1 Employment effects: transformation of sectors and activities . . . . . . . . . . . . . . . . . . . . 44
2.2 Digital platforms: new markets and new forms of work . . . . . . . . . . . . . . . . . . . . . . . 55
2.3 Big Data: the raw material of the digital economy . . . . . . . . . . . . . . . . . . . . . . . . . . 62
2.4 Industry 4.0 and the human-machine interaction . . . . . . . . . . . . . . . . . . . . . . . . . . 67
2.5 Flexible working time and location: beyond presenteeism . . . . . . . . . . . . . . . . . . . . . 73
2.6 Companies: organisational structures in transformation. . . . . . . . . . . . . . . . . . . . . . . 82

3. A VISION FOR QUALITY JOBS IN THE DIGITAL AGE . . . . . . . . . . . . . . . . . . . . . . . . . . 92

4. POLICY OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
4.1 Employability: from unemployment to employment insurance . . . . . . . . . . . . . . . . . . 100
4.2 Working time: flexible, but self-determined . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
4.3 The service sector: fostering good working conditions. . . . . . . . . . . . . . . . . . . . . . . 128
4.4 Health at work: approaches for Occupational Safety and Health 4.0 . . . . . . . . . . . . . . . 135
4.5 Employee data protection: safeguarding high standards . . . . . . . . . . . . . . . . . . . . . 142
4.6 Co-determination and participation: transformation based on social partnership . . . . . . . 152
4.7 Self-employment: fostering freedom and social protection . . . . . . . . . . . . . . . . . . . . . 166
4.8 The welfare state: future prospects and European dialogue . . . . . . . . . . . . . . . . . . . 177

5. RE-IMAGINING WORK: IDENTIFYING TRENDS, TESTING INNOVATIONS,

STRENGTHENING SOCIAL PARTNERSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188

ANNEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
Responses to the Green Paper on Work 4.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
The consultation process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Advisory group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
Expert dialogue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Workshops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
Futurale – A film festival on the future of work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
Imprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232

FOREWORD BY
FEDERAL MINISTER
ANDREA NAHLES
An eight-hour working day and an at least 36 hours of uninterrupted
reast per week; better hygiene and safety measures in factories; and an
end to child labour – once, that was our vision of the future of work.
Today there are new visions of how we would like to work: the creative
knowledge worker, for example, sitting by a lake with his laptop. Or the
manufacturing worker who uses an app to choose her preferred shifts
for the coming week.
The future world of work will be different from today’s. Will it also
be better? Will we work in a more self-determined and healthy way?
Will we go back to university or learn a new occupation at the age of
50? Are machines taking away our jobs, or are they paving the way for
innovations and productivity gains which create new ones?
We raised these questions and many more in a Green Paper on what
we called “Work 4.0”, and have since discussed them as part of a broad
public dialogue: with experts from the social partners, associations,
businesses and academia, and with members of the public. I would like
to warmly thank all those who have taken part and whose contributions
have set us on a new path.
4 5
Foreword
We wrote a Green Paper setting out questions. It is now fitting that
we publish a White Paper offering answers. This document summarises
the conclusions we have drawn from the public dialogue. Through it, we
want to capture and define a broader public debate and provide impetus,
within the Federal Government and beyond, for society to shape the
future of work.
The vital significance of the digital transformation for our country is
also reflected in the Federal Government’s Digital Agenda and its prior-
ities for action. The Federal Ministries are engaging with this issue
through various initiatives and platforms. Broadband roll-out and inter-
net access, data security and the implementation of new manufacturing
concepts – defined as “Industry 4.0” – are vital for our position as a loca-
tion for business. This is the context for the Work 4.0 dialogue.
It is already clear that the digital transformation – especially in relation
to the world of work – polarises opinion. For some it offers excitement
and the prospect of greater personal freedom, for others it bodes uncer-
tainty. After many discussions, my personal conclusion is: we want to
seize the opportunities which digitalisation offers for our economy, for
the labour market, and quality jobs. In doing so, we must take concerns
about job losses, the erosion of skills, work intensification and the
breakdown of the boundaries between work and private life seriously; as
well as taking into account the divide between people who find prom-
ise in freedom and flexibility and those who seek stability and security.
At the same time, we must highlight where the opportunities lie, and
show that we have the power to shape the direction of change.
If this White Paper were a novel, digitalisation might well be its secret
main character, never far from the action and significantly influencing
how events unfold. But it is not the sole protagonist, and the White Paper
has more than a single theme. Instead, Work 4.0 stands for the changes
taking place in the whole of the working world and their implications for
society. Rather than describing the normal status quo today, Work 4.0
is about future perspectives, scenarios and opportunities – to shape
work in a way which benefits people and advances our economy.
Foreword

What are our aims? A fair compromise between employers’ flexibility

requirements and workers’ needs. A campaign to promote lifelong
learning and every worker’s right to continuing vocational education
and training, because jobs are changing to an unprecedented extent.
Participation in the labour market and fair wages. More choice around
working hours and an innovative approach to working time which rec-
ognises the personal, family and societal demands on people, alongside
the demands of work, and which supports new solutions in balancing
these demands. Technology which lightens people’s workloads. Guar-
anteed statutory protection for all workers and new ways of supporting
healthy work. Data protection rules which ensure that employee data
protection standards aren’t violated, even in the future. Co-determina-
tion and involvement in the workplace and through social partners.
Better social protection for self-employed individuals and fair working
conditions in the platform economy. A welfare state which takes the
diversity of people’s life plans and the need to offer protection against
upheavals seriously, and which takes a forward-looking approach rather
than reacting to disruptive changes after the event.

The Work 4.0 dialogue has made clear that we need to embark on

new paths in order to launch and drive forward negotiations at all levels
to shape the way we work. I firmly believe that our model of co-deter-
mination and social partnership offers the best foundation for Germa-
ny to become a pioneer in shaping decent work in the digital age. Our
efforts in shaping the future world of work will continue. They are
worthwhile.

6

SUMMARY OF RESULTS
This White Paper on what we have called “Work 4.0” is the culmination
of a consultation process launched in April 2015 with the publication of a
Green Paper by the Federal Ministry of Labour and Social Affairs.
“Work 4.0” is a necessary extension of the debate about the digitalisa-
tion of the economy, generally referred to as “Industry 4.0”. The Federal
Ministry of Labour and Social Affairs invited associations, trade unions
and businesses to submit responses, held numerous specialised work-
shops and events, commissioned academic studies, and formed an impres-
sion of public opinion based on a direct dialogue with the public at local
level – for example during the “Futurale” film festival. The overarching
question was: how can we preserve or even strengthen our vision of
quality jobs and decent work (Gute Arbeit) in an era of digital transfor-
mation and societal change?
The Green Paper raised specific questions. This White Paper offers
initial answers.
Chapter 1 sets out the major trends and key drivers in the current
transformation of the world of work: digitalisation, globalisation,
demographic change, education, migration, and the transformation of
people’s values and preferences. These are the forces driving change.
Even so, the exact shape which developments take and their scope are
in no way predetermined.
Chapter 2 takes a closer look at key challenges and tensions character-
ising the World of Work 4.0, where new needs for action are emerging
for businesses, workers, social partners, trade associations, policy-makers
at federal and state level, as well as other stakeholders. The subchapters
take an analytical approach – they describe changes taking place in the
world of work and explore the associated opportunities and risks. The
focus is on six key questions which were raised in the consultation process
and outline main areas of tension between technological and economic
progress, on the one hand, and working conditions, on the other. First:
will digitalisation enable everyone, as far as possible, to have a job in
future? And, if so, subject to what conditions? Second: what will be the
impact of new business models such as “digital platforms” on the work of
the future? Third: if the collection and use of data is becoming ever more
8 9
Summary
important, how can employees’ legitimate entitlement to data protection
be guaranteed? Fourth: if humans and machines work together ever
more closely in future, how can machines help to support and empower
people in the way they work? Fifth: the world of work is becoming more
flexible. But what might solutions look like which also improve options
for workers, in terms of when and where they do their work? Sixth:
what will the modern company of the future look like – one which may
no longer resemble a traditional company in all respects, but which
nonetheless facilitates participation and social security for its employees?
Chapter 3 outlines our vision of decent work and quality jobs within
the digital transformation, and forms the normative basis for the con-
clusions and policy options of Chapter  4. The vision draws on the
strengths of the German economic and social model and argues for a
socially balanced future world of work which offers both, security and
flexibility. Fair wages and social protection remain the fundamental
criteria for quality jobs, and offering all citizens the opportunity to par-
ticipate in the labour market under favourable conditions continues to
be a key policy objective. At the same time, it is important to recognise
the growing diversity in workers’ preferences regarding working life,
which entails giving people more autonomy over the whay they struc-
ture their lives. To this end, we need to make the most of the potential
offered by technological change for shaping and organising work in a
better way. Institutional co-determination (Mitbestimmung) and new
forms of individual participation for workers should be regarded not as
contradictory, but as complementary, hallmarks of innovative and demo-
cratic businesses, within an innovative and democratic society.
Chapter 4 identifies key areas of activity and sets out potential policy
solutions. The technological and economic transformation we are ex-
periencing will not entail a wholesale automation of jobs. However, oc-
cupations and activities will likely be transformed, and employment
will shift substantially between sectors. In the light of such upheavals, it
is essential to invest in boosting skills and improving individual pros-
pects for advancement at an early stage. This support must be focused on
prevention: it should not only target low-skilled workers; take effect
late in a person’s working life, or immediately prior to redundancy, but
follow a broader approach. Under this logic, the current unemployment
insurance should be gradually transformed into an employment insur-
ance, to allow more preventive support for workers. An important ele-
Summary
ment would be the right to independent advice on lifelong education,
training and up-skilling. Looking to the future, one of our aspirations is
the introduction of a legal right to continuing vocational education
and training (→ Chapter 4.1).
Digitalisation offers the opportunity for greater self-determination in
the world of work. However, a balance must be struck between conflict-
ing interests and goals. Legally binding protection against overwork
and against the undue intrusion of work into a person’s private life is
essential. People increasingly express a need for more control over
when and where they work. The current coalition agreement contains an
initiative to anchor a general right to temporary part-time work in the
Act on Part-Time and Fixed-Term Employment (Teilzeit- und Befris-
tungsgesetz), this would make an important contribution to meeting
workers’ demands for greater autonomy. Negotiated working time
models and flexibility compromises are becoming more and more impor-
tant, recognising that the organisation of working time forms a central
plank of effective human resources strategies, performance appraisal
criteria, and management cultures.
A specific, more far-reaching approach would be a Working Time
Choice Act (Wahlarbeitszeitgesetz), which would combine greater
choice for workers in relation to working time and location with a condi-
tional possibility to derogate from certain provisions of the Working Time
Act (Arbeitszeitgesetz) on the basis of a collective agreement between
the social partners and an implementation at firm-level. This should in-
itially be limited to a two-year period and trialled through pilots with-
in workplaces (→ Chapter 4.2).
It is important to recognise that digitalisation goes beyond Indus-
try 4.0, and strongly impacts on the service and trade sectors in par-
ticular. This applies not only to the nature of work itself, but also to the
fact that platforms are increasingly acting as intermediaries, with pro-
found effects on markets and employment conditions. Especially in the
services and care sectors, collective bargaining coverage should be in-
creased and, looking to the future, eventually lead to a generally binding
collective agreement for the social sector. The importance of the care
sector will continue to grow. Attractive working conditions are particu-
larly necessary in this area. Public co-financing is sensible in the case of
socially necessary services delivered by the private sector. A new model
10
Summary
of a household services account and its digital administration could be
a suitable approach to support households (→ Chapter 4.3).
Health and safety at work must be adapted not only in the light of
the digital transformation, but also of increasingly perceptible demo-
graphic changes. To this end, it will be necessary to focus more on the
psychological strains of work, alongside physical demands. The Federal
Ministry of Labour and Social Affairs will therefore seek to further develop
health and safety instruments into an Occupational Safety and Health
Strategy 4.0 (→ Chapter 4.4).
Employee data protection requires a comprehensive approach. This is
both a result of continuing technological developments and the growing
importance of digital applications in the world of work; and of the new
European legal framework, the European General Data Protection Regu-
lation due to enter into force in 2018. The Federal Ministry of Labour and
Social Affairs will seek to ensure that the crucial provision on employee
data protection (Section 32 of the Federal Data Protection Act (Bun-
desdatenschutzgesetz)), which regulates “Data collection, processing
and use for employment-related purposes”, is retained. As a second
step, the leeway for more specific provisions which the European
General Data Protection Regulation grants to national legislators
should be put to use. To monitor and support further developments,
the Federal Ministry of Labour and Social Affairs will establish an inter-
disciplinary advisory council and promote the development of an Em-
ployee Data Protection Index, through which quality standards will be
set in a scientifically-informed process (→ Chapter 4.5).
Social partnership, co-determination and democratic participation in
shaping working conditions are core elements of Germany’s social mar-
ket economy, a stabilising force in times of crisis, and a factor for suc-
cess in the face of international competition. To successfully cope
with digital structural change, the negotiation processes between the
social partners and at firm-level need to be strengthened. In particular,
this requires a stabilisation of collective bargaining structures in Germany,
a broader foundation for workers’ involvement in their organisations,
adequate rights and resources for works and staff councils, and the
safeguarding of national and European standards for corporate co-deter-
mination. The Federal Ministry of Labour and Social Affairs will therefore
continue to propose greater flexibility in applying the general legislative
11
Summary
frameworks contingent on the existence of collective agreements. It will
take steps to promote the establishment of works councils, and it will
present proposals for boosting the ability of works councils to engage
in effective and efficient co-determination in the digital world of work.
This wll also work in the interests of employers, who rightly have a
need for greater flexibility in the light of rapid market changes
(→ Chapter 4.6).
Creating a conducive environment for self-employment and start-ups
in Germany is an important economic policy priority, and effective labour-
market and social policies are key enablers in this. The lines between
employment and self-employed work are blurring; this will be even
truer in the digital world of work. Against this background, it is appro-
priate and reasonable to include self-employed individuals in the statu-
tory pension insurance system alongside employees. The associated
contributions must be assessed together with costs incurred in other
social insurance systems, in particular statutory health insurance. Beyond
provisions for old age, one-size-fits-all solutions will not meet the needs
of everyone in self-employment. Legislators should therefore deter-
mine the appropriate level of protection which different types of workers
need, and include them in labour- and social-policy legislation accord-
ingly. Looking to the future, it might be useful to base regulations for
crowdwork on our long-standing, tried-and-tested regulations for home
workers (→ Chapter 4.7).
A major aim in further developing the welfare state’s institutions is to
stabilise employability and facilitate people’s various transitions over
their working lives. The concept of a Personal Activity Account would
see young workers granted initial capital, as a form of “social inher-
itance”, which can be used for skills development, starting a business,
or career breaks for personal reasons. It could also be managed as a
long-term account individuals would be able to pay into. Today, the in-
terplay between work and the welfare state can only be developed fur-
ther when the broader European context is taken into account. This
also applies to the consequences of the digital transformation, which
must therefore also be discussed at the European level (→ Chapter 4.8).
12
Summary
The debate on the Work 4.0 will continue. New trends must be rec-
ognised, and some options need testing in order to determine their
effects in practice. Chapter 5 sketches a way forward in our efforts to
“re-imagine work”.
We need better data to observe and foresee how our world of work
will develop over the coming years. The Federal Ministry of Labour and
Social Affairs is therefore proposing to introduce a regular public report-
ing on the world of work, with the involvement of academia and the
social partners representing employers and workers.
To achieve new flexibility compromises, we should examine further
incentives and instruments to support social partnership, collective
bargaining coverage and the establishment of works councils. Rather
than simply seeking to slow the erosion of collective bargaining coverage
and staff representation which has been evident over recent decades,
we should endeavour to reverse this trend. We want a phase of “shared
learning in and from the transformation” and an experimental testing
of new strategies. One crucial aspect of this is to put solutions into
practice at the workplace level. Moreover, we need a new interministe-
rial innovation, research and transfer strategy for “Work 4.0”. The
Federal Government’s existing research funding and transfer capabilities
should therefore be dovetailed and expanded if necessary. In consultation
with the social partners, we need to identify topics and areas for testing –
what we call ‘experimental spaces’ – which can then be trialled in sectors
or individual companies, accompanied by scientific supervision.
Evolution rather than revolution is our way forward, not only in shaping
the digital transformation of the world of work, but also in relation to how
we think about redistribution. Going beyond the Work 4.0 dialogue, we
need to reach a consensus in society on the future of the welfare state
and its social security systems.
13
KEY
This White Paper is the culmination of an extensive consultation
process. Many associations, institutions and companies have sub-
mitted responses to the key questions set out in the Green Paper.
Members of the public have made their voices heard on the website
www.arbeitenviernull.de or via social media. These comments, contri-
butions and suggestions have fed into the White Paper – in some cases
directly in the text itself, in some cases as quotes in the margin.

The following key explains the symbols used in the text to help readers
navigate the document.

Term explained in the glossary (→ p. 198)

---» Response to the Green Paper

» Reference in the text to a response

Two contradictory responses on the same issue

---» Comment from the public dialogue

» Reference in the text to a comment

Comment submitted via Twitter

Comment submitted via Facebook

Comment submitted via www.arbeitenviernull.de

(→ Kapitel 3.6) Reference to another chapter

15
DRIVERS AND TRENDS

1.1 DIGITALISATION
1.2 GLOBALISATION

1
1.3 DEMOGRAPHY AND THE FUTURE
LABOUR SUPPLY
1.4 CULTURAL CHANGE

1. DRIVERS
AND TRENDS
---» Work 4.0 challenges us all to
examine issues in a new light.
German Engineering Federation (VDMA)
---» No process is really new in and
of itself. But the depth and
pace of change is.
Industrial Mining, Chemical and Energy Union (IG BCE)
18
How are the parameters and conditions for social cohesion and our
« work changing over time? What lines can we draw from recent decades
to the present and on into the future? To distinguish actual change from
mere hype, it is worth looking at the long-term trends. « economy – the debates about digitalisation in and outside Europe are
This chapter provides a brief description of the most important drivers
and trends shaping tommorrow’s world of work: digitalisation, which
creates new technological foundations and possibilities for collaboration,
production, company organisation and the sale of goods and services;
globalisation, which – boosted by digitalisation – has significantly expand-
ed companies’ and workers’ sphere of action in recent decades and facili-
tated cross-border trade and communication, but has also led to a marked
rise in migration flows; demographic change, that determines who, and
with what skills, can participate in value creation now and in the future;
and ongoing cultural and societal change, which is transforming con-
sumption patterns and relationships, among others, and exerts a deci-
sive influence on which innovations are accepted and catch on, and
which are not.
The interplay of these developments opens up many possibilities to
work differently in future – more productively, flexibly, interconnectedly,
internationally. But at the same time, this creates pressure for change,
adaptation and innovation, to which we must respond as individuals
and as a society, on both the micro and macro level. The more clearly we
recognise why and in what shape new developments are emerging, the
« more purposefully we can shape them in line with our society’s values
and rules. «
Drivers and Trends
1.1 DIGITALISATION
From papyrus to wax tablets to Word documents, from the horse and
cart to railways and motor vehicles to self-driving cars, from the slide
---» These changes are affecting
almost every sector, every organisation
rule to punch cards to grid computing – technology has always been a and every worker in Germany. «
driver of change and societal progress. Digitalisation is at the centre of the Confederation of German Employers’ Associations
(BDA)
Work 4.0 dialogue, currently as its most important driver. It is a buzz-
word for all of the changes in the economy and the world of work
being driven by information technology. As digitalisation is having dif-
ferent impacts in different countries – depending in part on their level ---» The digital transformation will,
of technological development and other characteristics of their domestic little by little, completely change all
functions along the value chain. This
being conducted in very different ways.1 » applies in particular to development,
production, logistics and services. «
A NEW LEVEL OF DIGITALISATION Robert Bosch GmbH
Over 80 per cent of workers in Germany currently use digital informa-
tion or communication technology (ICT) in their work. 2 The transition
from analogue to digital technology has been under way since the
1980s; the internet’s triumphant advance began in the 1990s, and the
2000s saw the dawn of the era of mobile devices.
---» It is already the case today that
We are currently reaching a point where digitalisation permeates points, signals, barriers, vehicles, lifts
much of everyday life, value creation processes and work: the internet and stairs transmit information about
allows communication not only between people, but also between their status to a central database. Clocking
things, i.e. objects which transmit data. The technologies driving digital in via smartphone, or buying tickets via
structural change are likely to continue to develop rapidly for the fore- video links with ticket centres: workers,
seeable future. Such developments are characterised by the fact that machines and products are becoming
gradual improvements lead to tipping points, beyond which a new level of increasingly interconnected and are
applications becomes possible and enters the mainstream. Experts expect communicating in real time. The ana-
tipping points to be reached within the next ten years in relation to, for logue world is becoming more and
example, self-driving cars, complex products from 3D printing, and robots more linked with the digital world. «
delivering sophisticated services, such as those of a pharmacist.3 » Rail and Transport Union (EVG)
1 Grass/Weber 2016.
2 Federal Ministry of Labour and Social Affairs (BMAS) 2016a.
3 World Economic Forum 2015. 19
Drivers and Trends
---» The digitalisation of work
processes enables companies to manage
ever more complex work structures.
This applies not only to management
processes within organisations, but
also to the organisation of how
companies interact with external and
associated service providers and
manufacturing companies.
Industrial Mining, Chemical and Energy Union
(IG BCE)
20
Growth in mobile phone usage by 2020
In 2020, more people will have mobile phones than electricity at home
People with mobile phones
69% of the global population
People with electricity
68% of the global population
People with bank accounts
58% of the global population
People with running water
45% of the global population
People with cars
36% of the global population
People with landlines
28% of the global population
Source: Cisco 2016.
The example of the car – the epitome of German engineering skill –
offers a good illustration of this permeation and the resulting change in
business models. The product is changing in line with the technical
possibilities and customers’ wishes: cars are being individually configured
and increasingly connected in the Internet of Things , self-driving cars
are becoming reality, and individual inspection intervals and remote
servicing are possible thanks to new sensor technology and data analysis.
The production processes are almost completely connected, collaborative
robot systems are entering factories, and additive manufacturing pro-
cesses such as 3D printing are making extremely small production runs
possible. Design and product conception work is being outsourced via
digital platforms, and workers have a say on shift assignments using apps.
Alongside the manufacturing and sale of cars, new services are gaining
in importance: from app-based car sharing, to carpooling models, to
intermediaries for private driver services. This shows the breadth and
« speed of the digital transformation; and it also makes clear that changes
in technology, the economy, consumption and work go hand in hand.
Drivers and Trends
The new level of digitalisation is being driven by advances in three
areas. 4 First, IT and software: processor performance is continuing to
grow exponentially and is facilitating the use of cloud technologies
and mobile applications. Learning algorithms now justify the term
“artificial intelligence” for applications such as Watson, AlphaGo or
Siri. Second, robotics and sensors: as systems become smaller and less
expensive, their range of potential applications and usability are increas-
ing, making them interesting for smaller businesses and individual man-
ufacturing as well. Then there are new manufacturing techniques such
as additive processes, and improved control and data collection through
new sensors. Third, and crucially, connectivity: this is paving the way for
the cyber-physical systems which are the basis for Industry 4.0 , i.e.
networks of small computers equipped with sensors and actuators
which are built into objects, devices and machine components, and
which can communicate with each other via the internet.5 On this basis,
systems, machines and individual parts continuously exchange large
quantities of information and can, to a large extent, autonomously manage
production, inventory and logistics. Big Data can also lead to new busi-
ness models and customer-oriented services (e.g. process and sales
planning or predictive maintenance).6
THE ECONOMY IN THE MIDST OF CHANGE
The diffusion of digital technologies varies considerably between dif-
ferent sectors in Germany. 7 While the ICT and media industries have
undergone several waves of digitalisation and change over the past two
decades, this process still lies ahead for much of the manufacturing
sector.8 Whereas cutting-edge technologies are already being applied by
half of German businesses, a third of them are yet to look into their use. 9
Across all sectors, the question of future competitiveness is also linked to
how successful companies are in coping with the digital transformation. ---» From an SME perspective, the
The ICT sector is not alone in offering examples of how this can be upheavals in the labour market caused
achieved. In other sectors, too, such as the food trade, companies are by digitalisation will ultimately lead
successfully tackling digitalisation and building on existing social part- to more value added. «
nership structures. » German Confederation of Small and Medium Sized
Enterprises (BVMW)
« 4 Expert workshop organised by the Federal Ministry of Labour and Social Affairs on “Digitalisa-
tion’s Impacts on Employment and Forms of Work”, http://www.arbeitenviernull.de/fileadmin/
Downloads/Dokumentation_WS_3.pdf
5 See, among others, Spath 2013; Forschungsunion/acatech 2013.
6 German Association for Information Technology, Telecommunications and New Media (Bitkom)
2015.
7 Federal Ministry for Economic Affairs and Energy (BMWi) 2015.
8 See also Apt et al. 2016.
9 Arntz et al. 2016a. 21
Drivers and Trends
---» In the services sector, almost a
third of total growth in value added in
Germany from 1998 to 2012 can be
attributed to digitalisation – in total
and in absolute figures, this represents
an impressive 95.1 billion euros.
The importance of services is increas-
ing as a result of digitalisation.
United Services Trade Union (ver.di)
---» The digital transformation will,
if successfully managed, help in the
long term to maintain the com-
petitiveness of industrial production
in high-wage Germany, and to safe-
guard growth and employment.
German Engineering Federation (VDMA)
22
Digitalisation can lower transaction costs and increase efficiency.
Many associations of trade and industry and consultancies expect high
productivity gains in ICT and the manufacturing sector in the coming
years. 10 That said, at present there is still disagreement about the ex-
tent to which productivity growth in the digital economy can be shown
and measured (see box on “The Productivity Puzzle”). The prerequisite
for achieving productivity growth is, in any case, significant business
« and public investment in infrastructure, technology, work processes
and skills. « developments today on a par with past inventions which led to significant produc-
Alongside traditional companies, startups play a key role as drivers of
innovation. Larger companies often buy start-ups to drive innovation,
or set up their own departments or subsidiaries as autonomous “labs”
to develop and test new ideas. In addition, publicly funded research is
of vital significance.11
« the phase when the transformation or shift is taking place from the analogue
10 Rüßmann et al. 2015; Bauer et al. 2014.
11 On the significance of public investment for the economic development of new technologies,
see also Mazzucato 2014.
Drivers and Trends
THE PRODUCTIVITY PUZZLE
Productivity growth has slowed considerably in many industrialised countries
since the year 2000. The fact that digitalisation’s significant growth potential is
currently not reflected in productivity statistics is sometimes referred to as the
“productivity puzzle”.
The observed sluggishness of productivity growth has strengthened propo-
nents of “secular stagnation”.12 According to this interpretation, today’s technical
progress is merely incremental in nature. The argument is that there are no major
tivity gains, such as the steam engine, the car or the electric motor, because the
“low-hanging fruit” of industrialisation has already been picked, and the seventh
version of the iPhone simply does not constitute a major leap forward.13
In contrast to these “technological pessimists”, the “technological optimists”
believe the digital revolution will lead to significant productivity gains in the
near future.14 The weak growth at present is, they argue, a temporary phenom-
enon and attributable in particular to companies’ investment restraint during
world to the digital world, in which old business models are becoming obso-
lete and new business models are requiring high levels of initial investment. 15 In
addition, it has been observed that new technologies have not yet become
mainstream.16 Thirdly, it is argued that the statistics are distorted by problems in
collecting information – with new goods not yet appearing in the production
statistics, while the decline in the production of traditional goods is reflected in
full. This is said to be especially relevant with regard to digital goods and ser-
vices, which have produced welfare gains but whose value is (at present) only
partly visible in the National Accounts.17
All in all, there should be no rush to conclude that the weaker growth at
present means that digitalisation offers little potential for future productivity
gains. Moreover, some of the explanations for the slowdown in productivity
growth in Germany – growth in employment, demographic change or the “end of
the outsourcing wave” – are not connected to digitalisation. The latter could
therefore be cushioning the impact of factors which are holding back produc-
tivity growth.
12 This term was coined by the economist Alvin Hansen in the 1930s. It refers to a situa-
tion where economic growth is approaching a standstill. Today, Lawrence Summers,
Paul Krugman and Robert Gordon are key proponents of this theory.
13 See Gordon 2015.
14 See Brynjolfsson/McAfee 2014.
15 Heise et al. 2015.
16 Andrews et al. 2015.
17 Grömling 2016.
23
Drivers and Trends
---» The German economy’s
industrial base is strong and well-
placed to profit from digitalisation. « described as more incremental – with gradual changes to existing sys-
Confederation of German
Employers’ Associations (BDA)
---» The question is whether the
outlined distinction between a German
innovation model which seeks incremen-
tal process improvements and a disrup-
tive model from Silicon Valley can be
maintained in our global world. « every digital platform model, if it is even profitable in the long term,
German Trade Union Confederation (DGB)
---» There can and must be no rose-
tinted view of the potential implications
of digitalisation. It is essential to be able
to set out the risks objectively without
being accused of backwardness. «
Marburg Federation of Doctors (MB)
24
In the public debate about digitalisation, a distinction is often made
between two approaches. In Germany, the focus is on the buzzword
Industry 4.0 and new production processes involving cyber-physical
systems (→ Chapter 2.4). Besides manufacturing, attention is also increas-
ingly being devoted to industry support services which use Big Data .
These smart services are intended to preserve industry’s value added
compared to competitors from the IT sector and to open up new business
models. In the United States, by contrast, digital platforms for services are
playing a greater role (→ Chapter 2.2). The “German approach” is often
tems – while the “US approach” is tagged as disruptive – with existing
companies and business models being crowded out. «
On closer examination, however, this distinction proves to be overly
simplistic: digital platforms and their network effects are becoming
more important for manufacturers, too. The importance of collecting,
analysing and using application data is rising for services and manufac-
turing. The move by IT companies into producing goods (household
goods, media devices, cars in the near future), on the one hand, and the
new services which manufacturers are offering (leasing, maintenance,
car sharing), on the other, are just a few examples of how the lines are
blurring and companies are moving into new markets. In this context,
the importance of personal and industry support services is expected to
rise significantly in future. The way in which digitalisation shapes our
society will be determined by new technologies, as well as by the eco-
nomic costs of implementation, consumer preferences, societal values,
the development of the working world, negotiations between the so-
cial partners, and the parameters established by policy-makers. Not
will succeed in a social market economy like Germany. «
Drivers and Trends
1.2 GLOBALISATION
Global trade is not a new phenomenon. Even in antiquity, traders and
merchants did business across continents. However, it was industrialisa-
tion and the associated spread of new technologies, from railways to steam
navigation, which ushered in a massive expansion in the international
division of labour and a first wave of globalisation. Today, the term
“globalisation” is usually used to refer to the second wave of rapid accel-
eration in the worldwide flows of goods, services, capital, and people
from the mid-20th century onward and in particular since the 1980s.18
The German economy has always been very closely integrated into
world trade and global value creation, and this has intensified further
over the past quarter of a century. At the start of the 1990s, Germany’s
openness ratio (imports plus exports as a share of gross domestic product)
was already above 40 per cent. Over the following 25 years, it doubled to
its current level of 86 per cent – the highest level among the larger OECD
industrialised economies, after South Korea. The McKinsey Global Insti-
tute even ranks Germany in top place, ahead of Hong Kong and the
United States, in its Connectedness Index, which, in addition to trade,
takes into account cross-border financial transactions, data and com-
munication flows and flows of people.19
18 Between 1980 and 2008, the real volume of world trade quadrupled, growing twice as fast as
world production; see World Trade Organization 2013.
19 McKinsey Global Institute 2014. 25
Drivers and Trends
---» Flexible forms of employment,
such as temporary agency work,
fixed-term employment, part-time
work and self-employed work give
companies the necessary ability to
adapt to a volatile environment.
Daimler AG
---» Companies outsource work to
contractors even though they are
potentially outsourcing core compe-
tencies, with far-reaching implications
for their very existence.
Hans Böckler Foundation
---» Digitalisation is increasing
global interconnectedness and the
international division of labour in
production and services. We may see a
rise in cooperation with international
partners – including in real time,
around the world, i.e. in different
time zones.
Association of German Chambers of Commerce
and Industry (DIHK)
26
Drivers and Trends
DIGITALISATION AS A DRIVER OF GLOBALISATION On the demand side, values and consumer attitudes are changing; ---» For me, the future of work means
Just as the steam engine was once the technology which drove glo- digital communication can result in the rapid diffusion and transcending being more mobile and flexible, but also
balisation, changes in recent decades have been driven by exchange with- of regional and national orientations, but on the other hand it can also more replaceable. Globalisa tion and
in a global information and communication space.20 This is clear not least reinforce these orientations (→ Chapter 1.4). In parallel with this, aware- technologisation make it possible to
from the increase in digital data flows: while trade in traditional goods and ness of consumption’s local and global impacts on working and environ- produce the same quality of work
« services and cross-border direct investment roughly doubled between mental conditions has been growing for some years, especially in more from anywhere quality of work from
2005 and 2014, cross-border internet traffic grew eighteenfold over the prosperous countries, and individuals are increasingly questioning their anywhere «
same period, and the bandwidth used has increased by a factor of 44.21 own consumption patterns in this light. 21 Apr. 2015 via arbeitenviernull.de
On the supply side, companies are increasingly serving a global cus- Facets of globalisation
tomer base and are restructuring their work processes and corporate ---» Companies’ increasingly inter-
organisation accordingly. They are exposed to shifting market condi-
KNOWN TRENDS RECENT DEVELOPMENTS
national focus has an impact on worker
tions, the influence of financial investors and more volatile demand. Growing importance of
particpation, which is based on the
Cross-border trade mainly
One solution used in practice is to increase the potential for greater in physical goods and services
digital flows of territoriality principle. A staff rep-
information and data
internal flexibility (e.g. working time arrangements → Chapter 2.5) and to resentation body which is limited to
« make full use of possibilities for greater external flexibility (e.g. temporary
Capital- and labour- More knowledge-based
moni toring the execution of decisions
agency work, contracts for work and services) (→Chapter 2.6). Compe- intensive processes processes
taken elsewhere is not fulfilling its
tition is a driver of further innovations, productivity gains, and cost reduc- original function. «
tions. Businesses and their investor structures are increasingly multina- Conference of the Labour and Social Affairs
Focus on transportation More important role Ministers of the Länder
tional, whereas decision-making increasingly takes place in a more infrastructure for digital infrastructure
decentralised manner. Companies are more and more integrated in value
networks across the boundaries of their own businesses, while at the
Growing role of small ---» Digital working, especially in
Multinational companies
same time acting in or organising various regional value chains. Cross- enterprises and international production networks, is
as drivers
individuals
border trade in goods produced in different parts of the world has long superimposing itself on the traditional
since ceased to be globalisation’s only main feature; it is now joined by the concept of a company and posing new
Ideas diffuse Direct and global
« global division of labour already during the production of these goods. « comparatively slowly access to information challenges for the worker parti cipation
across borders is possible
culture. «
Shorter product life cycles and smaller lot sizes, which are transform- Daimler AG
Flows of goods and services Greater participation by
ing the parameters for industrial mass production, mean that flexibility mainly between more emerging economies and
advanced economies developing countries
and speed, in particular, are of great and growing importance, while the
focus on labour costs is tending to decline by comparison. 22 In sectors Source: Adapted from Manyika et al. 2016.
where the share of labour costs is in retreat as a result of digitalised and
automated processes, a “reshoring” of previously offshored production is
conceivable. Globally interconnected value creation thus has diverse
impacts on investment plans, the development and collaboration of
business sites, and on workers’ working and contractual conditions,
earning opportunities, the skills they require, and their opportunities
for workplace participation. »»
20 Boes et al. 2014.
21 McKinsey Global Institute 2015.
22 Coe/Yeung 2015. 27
Drivers and Trends
E F F E C T S O F G L O B A L I S AT I O N O N T H E DI S T R I B U T I O N O F
WEALTH
How globalisation trends have affected the distribution of wealth
between and within countries is a hotly debated issue. Between 1980
and 2010, the share of developing and emerging economies in world
exports rose from around a third to almost half. 23 This went hand in
hand with major shifts in the international division of labour. Globalisa-
tion in the field of international trade in goods and technology transfer
can also open up new employment opportunities for more highly
skilled workers in less developed economies.24 The economic integra-
tion of Asian countries, especially those with large populations, has signifi-
cantly reduced poverty from a global perspective.
In industrialised countries, however, affected by structural change as
a result of the relocation of production sites and falling demand for
lower-skilled employment, there were also groups which lost out. And
in developing countries that were less successful in integrating into
global production processes, the economic situation has actually
worsened for sections of the population.25 Overall, income inequality is
at its highest level for 30 to 40 years in most industrialised countries. 26
In Germany, it has increased sharply in terms of market incomes in
recent decades, although this has been partly offset in terms of net
household incomes by means of redistribution via the tax system and
social security contributions.
In summary, it is clear that it has long been inadequate to look solely
at flows of goods and services when it comes to analysing globalisation
trends. The recent refugee flows are far from the first indication that
special attention should be devoted to demographic and migration
trends (→ Chapter 1.3). Wherever globally driven structural change and
increased international migration flows lead to distributional conflicts,
pressure for renationalisation and for the metaphorical drawbridge to
be pulled up will not be far behind.
23 World Trade Organization (WTO) 2013.
24 Vivarelli 2014; United Nations Conference on Trade and Development (UNCTAD) 2014.
25 Milanovic 2016.
28 26 Organisation for Economic Cooperation and Development (OECD) 2015.
Drivers and Trends
1.3 DEMOGRAPHY AND THE
FUTURE LABOUR SUPPLY
The effects of demographic change are already being clearly felt in
Germany. While the size of the population has remained almost stable
over the past 20 years, the proportion of older people has increased. By the
end of the 2020s, almost a fifth of the working-age population will be
aged between 60 and 66. The life expectancy of infants born today is 11
years longer than in 1960. At the same time, the number of years in
which people enjoy good health is rising. One of the reasons for the ageing
population is the sustained low birth rate. Since the mid-1970s, in the
wake of the baby boom between 1955 and 1969, women in Germany have
been giving birth to around 1.4 children, in statistical terms.27 As a result,
each generation of parents is followed by a generation of children which
is a third smaller. An average rate of 2.1 children per woman would be
necessary to maintain the population at its current level.
The consequences have been visible in the labour market since the ---» Addressing the implications of
mid-1990s, with the gradual entry of the “baby-bust” generation. So an ageing workforce poses a challenge.
far, the impact of the lower birth rate on the labour supply has been It must be ensured that experienced
largely offset by an increase in labour force participation, particularly in and motivated older workers continue
the case of women and older people. In future this will be less effective to work productively and with motiva-
in offsetting the impact, however, as much of the potential has already tion until they retire. This requires a
been leveraged. 28 By the mid-2030s the baby-boom generation will sustainable and forward-looking com-
gradually be retiring, with the first baby boomers already reaching the pany policies. «
statutory retirement age in the next few years. Growing shortages in Employers’ Association of Insurance Companies
in Germany (AGV)
the recruitment of skilled workers are emerging in certain occupa-
tions and regions. »»
---» Above all, “Work 4.0” means
addressing demographic and structural
change. We will need all hands on deck,
whether employed or self-employed.
We need flexible regulations! «
23 Apr. 2015 via arbeitenviernull.de
27 According to the Federal Statistical Office, the birth ratio is 1.5 children per woman at present (2015).
28 Despite the increase in female labour force participation, there remains a significant “working time
gap” between men and women. Women’s average weekly working time is, on average, eight hours
lower than men’s.
29
Drivers and Trends Drivers and Trends

LABOUR SUPPLY AND IMMIGRATION THE POPULATION’S SKILLS LEVEL

Growing national and international mobility is another factor in demo-
graphic change. The difference between the number of people moving
to a country and the number leaving it is known as net migration. In
2015, immigration to Germany reached a record high. According to the
provisional migration statistics, net migration was 1.1 million, with
approximately 2.1 million people coming to Germany and just under a
million leaving the country. Between 1990 and 2015, over 280,000 more
people came to Germany each year on average than moved away.
Net migration to Germany, 1991-2015
1,200,000
Another key in preventing shortages of skilled labour is avoiding a
mismatch between the demand for skills and its supply. For this reason,
the population’s skills level plays a special role in meeting the demand
for skilled workers.
The working-age population’s level of educational attainment has
risen in recent years: 41 per cent of a school year group now attains the
higher-education entrance qualification, compared to 30 per cent in
2006. Women now account for a larger proportion of this group than men.
Breakdown of the population’s educational qualifications by age
and gender

1,000,000 Women Men

100%
800,000
90%
600,000
80%
400,000
70%
200,000
60%
0

---» It is essential to use the existing -200,000

50%
skilled labour pool in our population 1991 1995 1999 2003 2007 2011 2013 2015
40%
and widen the group of potential Germans Foreign nationals
applicants as much as possible, espe- 30%

cially with regard to foreign nationals. Source: Federal Statistical Office, 2016. 20%
Despite the drama of the situation, the
10%
current massive migration of refugees Migration to Germany at present largely consists, alongside immigra-
to Germany should be seen as an tion from other European countries, of people who have fled their 0%
opportunity to recruit qualified skilled countries. Due to their generally young age – more than half of those Age: 65+ all 20–24 65+ all 20–24
workers among them for the German who arrived in Germany seeking protection in 2015 are under 25 years No general school- Intermediate school
labour market and permanent employ- old – these migrants have mainly increased the size of the working-age leaving certificate certificate or equivalent
ment in Germany. « population. Integrating them into the education system and the labour
dbb – German Civil Service Federation market will be one of the main challenges in the coming years. « Lower secondary
school certificate
Higher education
degree

Source: Based on data from the Federal Statistical Office and the Federal Institute for
Population Research, 2015.

30 31
Drivers and Trends Drivers and Trends

Meanwhile, the proportion of those leaving school with a lower second- new normal increasingly also includes households with one and a half to ---» The traditional family model
ary school (Hauptschule) certificate is 21 per cent, compared to 27 per two incomes, and working single parents. »» centred around a (usually) male sole
cent in 2006. The proportion of school leavers who do not attain a lower breadwinner is becoming less and less
secondary school certificate has fallen from eight to six per cent. How- Breakdown of labour market participation in two-parent families common. Ever more young couples
ever, social background continues to exert a major influence over educa- want to split the time they spend on
tional attainment. In particular, children with a migrant background 50% family responsibilities and work as
remain underrepresented in academic secondary schools (Gymnasien),
40%
equally as possible. «
but account for a higher than average share of early school leavers and Bremen Chamber of Labour

school leavers with a lower secondary school certificate. Despite some 30%
progress, it is still more difficult for young people with a migrant back-
20%
ground to obtain a vocational training place.29 ---» I would like to have more time
10% for my children in future and be able to
The link between skills level and income is equally clear. According to 0% organise my working hours flexibly.
calculations by the Institute for Employment Research (IAB), workers 1996 2003 2015 Developing a suitable strategy for this
who have completed a vocational training programme earn, on average, Men: full-time/
Women: part-time
Men: full-time/
Women: not economically active
would be great! «
almost a quarter of a million euros more over their entire working lives 22 Apr. 2015 via arbeitenviernull.de

than workers who do not have a vocational qualification or the higher- Both full-time Both part-time
education entrance qualification (Abitur). Higher-education graduates,
meanwhile, earn over 1.2 million euros more, which equates to average Source: Federal Statistical Office, special analysis from the 2015 Microcensus.

lifetime earnings more than twice as high.30

1.4 CULTURAL CHANGE
The transformation of the economy and society is accompanied by
changes in lifestyles and values. Important issues in this context include
individualisation, changed visions of family life and social cohesion,
In the course of these developments, individuals’ preferences regard- ---» Many people find it very chal-
ing their own work are also changing. Women and men want to work on lenging to combine work and family
a more equal basis, share family responsibilities, and also be able to pursue commitments in the way they would
personal interests. The ties between generations have also changed. prefer. This is especially true in life
When parents and grandparents live in different places, there are huge phases with intensive caring commit-
differences in the extent to which the grandparents are available as a ments, such as when looking after
“flexibility buffer” for childcare. At the same time, more children are young children or caring for elderly
living at home for longer, and in some cases they are being financially family members. «
supported by their parents until well into adulthood. » Forum for Progressive Family Policy (ZFF)

greater diversity in life plans and preferences regarding work, and new
consumer attitudes.

FAMILY MODELS AND TIME-MANAGEMENT NEEDS ARE CHANGING

The transformation of social values and relationships is also reflected
in a more partnership-based conception of gender roles. Due to the
steady rise in female labour force participation, in more than half of all
couples both partners now work, although women often still work part-
time.31 Traditional single-income households do still exist. However, the

29 Authoring Group Educational Reporting (Autorengruppe Bildungsberichterstattung) 2016.

30 Schmillen/Stüber 2014.
32 31 Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ) 2015 33
Drivers and Trends Drivers and Trends

---» Long-term care is a task for For the generation of parents aged 30 to 55, who make up almost a Preferences regarding work: seven value systems
society as a whole which is third of workers, time becomes a scarce resource as they do their best
undertaken by an individual. « to combine professional commitment and advancement, bringing up Finding a work-life Finding fulfilment in
dbb – German Civil Service Federation children, and the pursuit of personal interests. 32 This time crunch, balance: 14% work: 10%
which is exacerbated further in the absence of an adequate care infra- Seeking meaning
structure, is likely to intensify in an ageing society if more and more outside work: 13% PERSONAL DEVELOPMENT

---» Working time sovereignty for workers face the additional responsibility of caring for infirm family
employees is still very limited, members, on top of their work and parental responsibilities. 33, 34 Matters 6
Meaningfulness 5
despite the introduction which have “traditionally” been of particular importance for workers, Mismanagement IDEAL Scope for action Social callousness
of greater flexibility. « such as security and pay, are therefore being joined by the desire for 7
4 PERFORMANCE
German Trade Union Confederation (DGB) greater time sovereignty . « Incompetence
COMMON GOOD
1
3 STRUGGLE FOR
EXISTENCE
GREATER DIVERSITY IN PREFERENCES REGARDING WORK 2
Stagnation
---» At the same time, workers’ need The “discovery” of one new generation after another (such as Gener- Solidarity Prosperity Economic interests
for greater time sovereignty is rising. « ations “X” and “Y”) points to a shift in values. Yet such generalised
Convention STABILITY
Gesamtmetall – Federation of German Employers’ descriptions of different generations tend to overlook constants: for Materialism
Associations in the Metal and Electrical
example, a secure and well-paid job remains the most important aspect
Engineering Industries
of decent work for today’s new entrants to the labour market.35 Conformity
Being able to Achieving peak
live comfortably performance
from work: 28% Working within a Working hard via dedication:
It seems more useful to look at the diversity in workers’ preferences
strong community of for prosperity: 11%
regarding work and the welfare state as a whole. The Federal Ministry of solidarity: 9% 15%
Labour and Social Affairs has therefore funded an unprecedented study,
which draws on IT-based qualitative interviews with a representative Source: Federal Ministry of Labour and Social Affairs (BMAS)/Nextpractice 2016

sample of 1,200 working people in Germany. The study “Value Systems

in the Context of Work 4.0” (Wertewelten Arbeiten 4.0) highlights the
diversity in the reality of workers’ lives and their preferences.36 The study identifies seven typical value systems with discrete per-
spectives on the subject of work. Sociodemographic characteristics
such as age, income or level of educational attainment can only partly
explain the respondents’ adherence to certain value systems – unlike in
the case of traditional social environments in earlier times. In terms of
the attitudes and positions which guide people’s actions, these value
systems are in some cases diametrically opposed (see box). Differences
exist not just in people’s perceptions of the status quo, but also regard- ---» For me, work in the future means
32 To date, it is predominantly women who reduce their gainful employment in favour of unpaid
ing their views on shaping Work 4.0. What some regard as a desirable combining work and the personal sphere
work. The Federal Statistical Office’s 2012/2013 Time Use Survey shows both a gender imbalance
in the distribution of paid and unpaid work and a higher overall burden on households with
future is a threatening scenario for others. » rather than separating them, and ben-

children. Unpaid work accounts for almost twice as high a share of women’s working time as paid
efiting from this, e.g. coming up with ideas
work. By contrast, 62 per cent of men’s working time consists of paid work, while unpaid work
accounts for just 38 per cent. (Federal Statistical Office (Destatis) 2015a).
while cycling. «
21 Apr. 2015 via arbeitenviernull.de
33 Bauer et al. 2012.
34 Four out of five people in need of care are cared for at home (Federal Statistical Office (Destatis)
2015b). The rising proportion of people entering higher education means that graduates, in
particular, are entering the labour market later in life. It is therefore increasingly common for
workers to have to not only begin and advance their careers and start a family simultaneously
or within a short space of time, but also to undertake advanced training and care for relatives
in parallel.
35 Federal Ministry of Labour and Social Affairs (BMAS) 2015a.
34 36 Federal Ministry of Labour and Social Affairs (BMAS)/Nextpractice 2016. 35
Drivers and Trends Drivers and Trends

SEVEN VALUE SYSTEMS Finding fulfilment in work (10 per cent)

Being able to live comfortably from work (28 per cent of respondents)
People who share this value system primarily want to be able to lead a normal
life in a secure community without material worries. They see work as part of this,
but in some cases they are finding that it takes up so much of their lives that
little time remains for personal matters. Being able to plan ahead is a key posi-
tive value for them, while they regard a faster pace of work and growing perfor-
mance pressure as negative. They expect the state to provide a safety net for all
those who contribute to society.
Working within a strong community of solidarity (9 per cent)
For people with this value system, an ideal world of work is characterised by
mutual loyalty, appreciation for their performance, and participation in a com-
munity of solidarity. They find developments within society worrying in some
respects. They have the feeling that more and more people are falling through
the cracks and are no longer finding a place in society. They long for the days when,
as they see it, companies cared about the wellbeing of their staff, there was work
for all, and people stood by each other even in hard times. They believe the state
and companies have a duty to return to focusing more on the wellbeing of all.
Working hard for prosperity (15 per cent)
A lifetime of hard work is regarded as a given by people who adhere to this
value system. They believe that everyone who really works hard can succeed,
although they are noticing that this is no longer as simple as it once was. And
in their view, those who have made it are entitled to treat themselves to a little
luxury. They expect the social partners to ensure that Germany remains strong in
economic terms and that high achievers continue to have a home here. They
expect the state to create conditions which ensure that everyone who works hard
can achieve a certain level of prosperity. At the moment, however, they feel
they are not experiencing a sufficient level of success and recognition despite
working very hard.
The ideal work situation for people with this value system is characterised by
opportunities for them to constantly reinvent themselves and have many exciting
experiences. They see themselves as part of a network of likeminded people, one
which stretches beyond Germany. For them, there is no contradiction between
personal fulfilment and performance and efficiency. They expect the state and
employers to support people on their individual paths, for example through
flexibility in working time and location, and comprehensive childcare.
Finding a work-life balance (14 per cent)
For people with this value system, work is ideal if it can be balanced with family
commitments, personal fulfilment and involvement in shaping society. At the
same time, they expect every individual to show a certain degree of personal
responsibility. In their view, society’s purpose is to jointly create good condi-
tions for all. The business and working world should adapt to people’s needs,
not vice versa. They are not willing to sacrifice their principles for material secu-
rity. They therefore expect the state to provide opportunities for effective involve-
ment in shaping society.
Seeking meaning outside work (13 per cent)
The people with this value system do not regard paid employment as the
only possible meaningful activity. They measure an activity’s value by its contri-
bution to the common good. They often regard charitable work as more mean-
ingful than work carried out primarily for financial reasons. They expect the state
to guarantee all citizens an adequate amount to live on, irrespective of what
income they earn in the labour market.

Achieving peak performance via dedication (11 per cent)

For people with this value system, the ideal vision of work is characterised
by responsibility, efficiency and striving to perform to the best of their potential.
They regard the rapid pace of developments in the economy and society, includ-
ing those resulting from digitalisation, as a welcome challenge rather than
stressful. In their view, it is up to every individual to get to grips with the new
challenges, for example through lifelong learning. They expect the state to create
conditions which enable individuals to deal with the individual challenges of a
changing world of work. They regard these conditions as mostly being in place, as
their experience has been that particular dedication leads to personal success.

36 37
Drivers and Trends
---» Greater self-determination in
the context of work means shaping
working conditions and giving people
options so as to allow the emergence
of life prospects with self-determined
and selectable planning horizons.
Association of Staff Councils of
the Supreme Federal Authorities
---» Cohesion in communities and
in society as a whole is not ensured
solely by economic goods; a shared
stake in cultural goods also plays a
part, including a shared experience,
perception and organisation of time.
German Bishops’ Office
38
For some respondents, digitalisation offers the possibility of greater
self-determination in the context of work, while others see a risk of fur-
ther work intensification or job losses. The picture is similar when it
comes to the buzzword “flexibility”. The contradictory views held about
the world of work from a historical perspective are of particular cause for
« concern: almost half of workers are sceptical or pessimistic about the
future, believing that their ideal vision of work came closest to reality in
the post-war decades. For the optimists, the opposite is true. However,
there are also shared beliefs: the majority are opposed to precarious
employment which violates the principle of fair pay, and to high levels
of work intensification . There is a strong desire for social cohesion
and participation. «
The study shows that today there is less of a homogenous “workers’
perspective” than ever, just as there has never been a single “employers’
perspective”. People in Germany have in some regards contradictory,
« and in some regards shared visions of an ideal working environment
and working life.
Drivers and Trends
CULTURAL CHANGE AND NEW CONSUMER NEEDS
The new possibilities of digitalisation and the changes in our culture
and everyday life are interrelated. Widespread access to information,
communication via social networks, the influence of algorithms on
our thoughts and actions – all of this will fundamentally change our
society. It is not yet possible to say with any certainty whether a “digital
culture” 37 is emerging and to what extent it, in turn, will transform the
world of work.
What is already clear is that changes in consumer habits are having
an impact on working life. E-commerce has radically changed many
sectors. As customers, we shape the business and working world
through our demand for services which others provide. In some respects,
changes in social structures and values are giving rise to entirely new
consumer habits and needs, which can in turn be satisfied better or in
new ways by the digital economy.
For example, temporary access to and time-limited use of products ---» The line between producers
(e.g. cars) and data (e.g. music) seem to be gaining ground compared to and consumers is becoming blurred in
traditional ownership. The desire to lead more sustainable lives and the case of prosumers, for example if
engage in more sustainable consumption is also inspiring a new sharing a consumer uses software to design an
economy . At the same time, customers expect their needs to be satis- individual piece of furniture which
fied more quickly in the “on-demand economy”. Both sides of the coin are is then produced in a digital factory. «
examined in greater depth in Chapter 2.2. As prosumers or as “suppliers” Bremen Chamber of Labour
of data and self-generated content, customers and users are active partici-
pants in the process of innovation and value creation. »
The implications for society are mixed, with positive prospects in --- » Services in the logistics and
terms of environmental sustainability and economic growth on the one distance selling sector are in demand
hand, and growing pressure on labour standards and pay conditions around the clock – driven by consumers’
and a potential increase in low-skilled work in the service sector on the desire to be able to purchase items 24
other. The organisation of the work of the future therefore cannot be hours a day with the click of a mouse,
separated from the question of what demands we will and should make and ideally to receive their purchases
as consumers. » immediately by express delivery; driven
by the competition between individual
online retailers to achieve the highest
turnover. «
Social Organisation Germany (SoVD)
37 Stalder 2016. 39
CHALLENGES PRESENTED
BY WORK 4.0

2.1 EMPLOYMENT EFFECTS:

TRANSFORMATION OF SECTORS AND ACTIVITIES
2.2 DIGITAL PLATFORMS:
NEW MARKETS AND NEW FORMS OF WORK
2.3 BIG DATA: THE RAW MATERIAL OF THE DIGITAL ECONOMY
2.4 INDUSTRY 4.0 AND THE HUMAN-MACHINE INTERACTION
2.5 FLEXIBLE WORKING TIME AND LOCATION:
BEYOND PRESENTEEISM

2
2.6 COMPANIES: ORGANISATIONAL STRUCTURES
IN TRANSFORMATION
 Challenges

2. CHALLENGES time avoiding overwork caused by a breakdown of the boundaries

between work and private life ? Ultimately, answers to all of these
PRESENTED BY WORK 4.0 questions must be found in practice by companies, which are undergoing
a fundamental transformation. They are facing the question of how a
company should be organised in a fully interconnected world and what
impact this has on how people work together.
Based on the analysis of long-term trends and driving forces in
Chapter 1, this chapter examines their effects on the world of work and The different subchapters first identify what is really new, then go on
the labour market. Its sections look at fundamental questions and to examine the contradictions and tensions associated with these
challenges relating to the digital transformation. The impacts on developments. What becomes clear is that the opportunities and risks
employment, in particular, are hotly debated in the media: will we lose depend on what action we take, and decisions must be taken on the
or gain more jobs as a result of digitalisation and automation? Under basis of careful analysis and in the knowledge that conflicting aims exist.
what circumstances can we tap into new employment? The new devel-
opments can be directly experienced through digital platforms, which
are changing our everyday lives. But do they fit in with the business and
working world of a social market economy , or is there a need for new
rules or even a new framework? Digitalisation is based on data which is
collected, stored and analysed: it is a new raw material for the economy.
Do we need more or less data protection in order to seize the opportu-
nities of Big Data effectively and safely? And who actually owns the
data? The relationship between humans and machines is also changing:
what will the computers and robots of the future be able to do, and what
human capabilities are irreplaceable? Who will give instructions to whom
in future? What requirements do companies have in terms of flexibility?
How can we use flexibility in working time and location to develop
new solutions for a work-life balance and achieve a fairer distribution
of paid and unpaid work between men and women, while at the same

42 43
Challenges Challenges

2.1 EMPLOYMENT EFFECTS: THE GERMAN LABOUR MARKET IN TRANSFORMATION

I: UNEMPLOYMENT AND WAGE TRENDS
TRANSFORMATION OF The German labour market has undergone a profound transformation over

SECTORS AND ACTIVITIES
Overall, developments in the German labour market have been
positive in recent years. The global financial and economic crisis was
weathered successfully. Skilled migration has so far been able to
offset the negative impacts of demographic change. Following a
decline in the 1990s and the early 2000s, the labour force has risen
by over four million people since 2005. The number of workers in
jobs with compulsory social insurance coverage has increased by
around 4.5 million in the past ten years to over 31 million people.
the past 25 years. During the short post-reunification boom, unemployment in
western Germany fell to 1.6 million in 1991, while mass unemployment set in
immediately in the east as a result of plant closures. Subsequently, from 1992,
the west also experienced a sharp rise in unemployment. The economic upswing
in the late 1990s brought more people into employment again, but ended at the
turn of the millennium. Several years of economic stagnation followed, during
which unemployment rose once more. It reached a record high at the beginning
of 2005, when unemployment and social assistance were merged. Since then, with
the exception of the financial crisis in 2009, unemployment has fallen steadily
and is currently at its lowest level since reunification, at around 2.6 million.
Unemployment in Germany, in millions of people
5,0

4,0

3,0

2,0

1,0

0,0
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

All of Germany Western Germany Eastern Germany

Seasonally adjusted monthly figures, Federal Employment Agency

As at: September 2016

Times when unemployment is high are also periods of weak wage growth, as
they have a detrimental effect on employees’ negotiating position. The decline
in collective bargaining coverage also played a role; this trend began at the end
of the 1970s and continued in post-reunification Germany. In 1998, the first
year for which data is available from the relevant time series in the IAB’s Estab-
lishment Panel survey, the level of workers’ collective bargaining coverage
for the western German economy as a whole was still just short of 76 per cent,
and this figure has since fallen almost continuously, recently (2015) reaching
51 per cent. The level in eastern Germany was 56 per cent in 1998 and just 37
per cent in 2015.38

44 38 Ellguth/Kohaut 2016 45
Challenges Challenges

The labour share (workers’ wages as a proportion of national income) fell by
around five percentage points from the mid-1990s. Real wages initially rose at
the beginning of the 1990s but then stagnated until into 2009, and even fell
during the intervening period, with significant disparities between sectors in
some cases.
With regard to future developments in the labour market, the key ---» For years, the insurance industry
questions are: What will digitalisation’s overall employment impact be? has seen a decline in the need for simple,
Will jobs be lost? If so, who will be affected? By contrast, in what areas routine activities, and a rise in demand
will new jobs be created? The clear answer used to be that low-paid for graduates. In the long term, the
jobs, especially for the low-skilled, would be lost. In the current discus- sector expects digitalisation to result

Real wages in Germany, 1991-2015 sion about digitalisation, however, there is a widely held theory that in changes to its workforce structure. «
middle-skilled activities, especially those which are routine-intensive, Employers’ Association of Insurance Companies
in Germany (AGV)
could increasingly be automated, such as bookkeeping or product test-
110
ing. While there have recently been indications in Germany of a trend
108 towards a decline in the importance of routine, middle-skilled tasks,
106 there is no sign as yet of any collapse in employment in this area.40 »
104 Current studies are grappling with the question of whether and to ---» Work 4.0 =
102 what extent technological unemployment will be a key concern in future. Germany running out of work. «
Some studies and popular science texts have even reignited the discussion 17 May 2015 via Facebook
100
about an “end of work” . 41 They look at digitalisation’s potential for
98 automation and argue that intelligent machines and algorithms will
1991 1994 1997 2000 2003 2007 2010 2013 2015 replace most workers in the long term. Technological advances have been
sparking similar predictions ever since the invention of the loom. »
Index: 1991=100. Source: Federal Statistical Office
---» Industrial revolutions have
The much-quoted finding by Frey and Osborne (2013) that 47 per cent never destroyed jobs on a massive scale.
It is only since 2014 that real wages in Germany have risen noticeably again –
supported in part by very low inflation. It is not yet possible to put a reliable of jobs in the United States are at risk due to automation (42 per cent in #Industry40 won’t either.
figure on the impact of the statutory minimum wage. However, workers Germany), assumes everything that theoretically can will in fact be auto- #arbeitenviernull «
with below average earnings, in particular, have benefited from much greater mated, and that all activities required in certain occupations can be auto- 24 Nov. 2015 via Twitter
increases recently.
mated.42 In reality, however, only specific individual activities are being
Weak wage growth was accompanied by a marked rise in wage inequality. automated, not necessarily entire occupations. If this is taken into con-
One explanation put forward to account for this is a rise in skills-related wage sideration, around 12 per cent of workers in Germany today hold jobs
differences as a consequence of technological progress. Experienced, high- which are at a high risk of being automated.43 Again, this is only a potential
skilled workers benefited, in particular, while low-skilled workers lost out.
risk, as there are many legal, societal and economic limits on automation.
Other explanations include institutional influences such as the decline in collec-
tive bargaining coverage and rising pay differences between individual compa- In addition, workers are adjusting their activities and taking on more
nies in the same sector. 39 Since 2010, wage inequality has not risen any further, complex tasks. 44 Bearing in mind that each year over three per cent of
and has even declined slightly at times. workers in Germany change occupation, and, in the long term, a fifth of
workers do not work in the occupation for which they have been
trained, puts the predicted impacts on employment into perspective. 45

39 Möller 2016.

40 Eichhorst et al. 2016.

41 Including Brynjolffsson/McAfee 2014; Kurz/Rieger 2013; Ford 2015.
42 Frey/Osborne 2013.
43 Bonin et al. 2015, Übertragung der Studie von Frey/Osborne 2013 auf Deutschland (Application
of the Frey/Osborne 2013 study to Germany). Regarding other countries, see also Arntz et al.
2016b on behalf of the OECD. The reason for the relatively high level in Germany is the compara-
tively low proportion of high-skilled and communicative and interactive activities. The study
also highlights low ICT investment in Germany.
44 Autor 2015; Bessen 2016.
46 45 Nisic/Trübswetter 2012; Seibert 2007. 47
Challenges
---» What is key is the distinction
that only activities and not entire
occupations as such can be automated.
In addition, positive impacts on
employment and adjustment effects for
companies and their staff are over-
looked. An analysis of individual
activities therefore does not allow
conclusions to be reached about
economy-wide impacts. « out particular priorities being set, with the alternative scenario of “accel-
German Engineering Federation (VDMA)
48
Challenges
They describe an adjustment process which is already taking place, but THE GERMAN LABOUR MARKET IN TRANSFORMATION
which will probably pick up momentum. « II: LOW WAGES AND NON-STANDARD EMPLOYMENT
Low-wage employment has risen strongly since the mid-1990s. On the one
Several long-term forecasts have already been produced for the Federal
hand, this enabled many people who had not previously been in emplyoment
Ministry of Labour and Social Affairs regarding the development of the to gain a foothold in the labour market from the mid 2000s onwards. On the other
labour market. The current forecast for the period to 2030 calculates and hand, there has been an increase in the number of workers who are unable to live
assesses scenarios in order to explore to what extent the digital transfor- on their wages, in some cases despite working full-time.47
mation can be shaped .46 In methodological terms, the study compares a
The growth in employment since the mid-2000s was accompanied by an increase
“baseline scenario”, which assumes slow but steady digitalisation with- in non-standard employment. The official statistics define non-standard forms
of employment as distinct from the standard employment relationship , includ-
erated digitalisation”, in which policy-makers and the business community ing part-time employment of 20 hours per week or less, marginal employment,
fixed-term employment and temporary agency work.
take on a pioneering technological role and systematically align educa-
tion and infrastructure policies with the digital transformation .
Number of people in standard, non-standard and
self-employment, in millions
The key finding is that, in the baseline scenario, the number of workers
in 2030 will be around the same as in 2014, whereas in the accelerated 36
35
digitalisation scenario, significant positive impacts on growth and employ-
34
ment can be expected thanks to productivity gains. For the German labour 33
market, accelerated digitalisation would mean a continuation of struc- 32
#
tural change. For example, an additional 750,000 jobs in total would be 8
lost in 27 sectors (e.g. retail, paper and printing, public administration), 7
but this would be more than offset by employment growth of a million 6
5
jobs in total in 13 sectors (e.g. IT services, research and development). 4
Overall, the labour force could grow by around a quarter of a million people 3
2
by 2030, with a corresponding fall in unemployment.
1
0
1991 1994 1997 2000 2003 2007 2010 2013 2015
Standard employment Fixed-term employment
Non-standard employment Solo self-employment
Total self-employment Marginal employment
Part-time work up to 20 hrs. Temporary agency work
Based on the concept of the core labour force; figures from 2011 onwards are of
limited comparability due to changes in how working status is recorded; there is some
overlap between the groups of persons in non-standard employment.
Source: Federal Statistical Office, Microcensus
47 According to calculations by the Institute for Work, Skills and Training (IAQ), the
low-wage threshold of 66 per cent of the median wage was 9.30 euros per hour in
2013. Hence, 24.4 per cent of all employees received low wages in 2013; see Kalina/
46 Vogler-Ludwig et al. 2016. Weinkopf 2015. 49
Challenges Challenges

It is widely accepted that changes in the parameters for temporary agency The labour market forecast anticipates a significant rise in employment ---» Forecasts also provide indica-
work and marginal employment have contributed to strong growth in the number in business services and the social sector, while a decline in employ- tions of what types of activity will be
of people in these forms of employment. That said, non-standard employment
ment is expected, among others, in public administration, the hospitality needed in future, namely knowledge
has primarily been entered by people who were formerly economically inactive.
Overall, there are more people in both standard employment relationships sector, and retail. In most sectors, accelerated digitalisation intensifies the work and “working with people”.
and non-standard employment today than was the case ten years ago. The propor- trend of the baseline scenario. This is especially true with regard to IT and Working with people involves “inter-
tion of the population aged between 15 and 64 in a standard employment relation- business services. In sectors providing equipment for Industry 4.0 , active” work, (personal) services, which
ship has risen by five percentage points since 2004, while the proportion of
those in non-standard employment has risen by three percentage points.
primarily mechanical engineering, digitalisation has a positive impact on require both social and creative skills. «
employment, while the overall trend is negative. The results are similar United Services Trade Union (ver.di)

A structural shift is only visible from a more long-term perspective, if one looks for the relevant occupational categories. »
at the respective shares of these employment relationships in the total econom-
ically active population: Here, the proportion of standard employment relation-
Other studies on the impacts of digitalisation are not forecasting any
ships fell from 85 to 76 per cent between 1984 and 2013.48
significant job losses either (→ box “Further Studies on Employment
Non-standard employment can act as a bridge to permanent, full-time employ- Impacts”). The forecasts remain vague, however, with regard to specific
ment and can – if freely chosen – make it easier to balance work and family respon- groups. For example, it is impossible to offer a clear answer to the ques-
sibilities. It is problematic when it becomes permanent or fails to provide an
tion of what effects digitalisation will have on women’s employment
adequate income for people to live on, and thus involves uncertainty and a greater
risk of poverty for those affected.49 potential. On the one hand, women are comparatively less affected by
impacts on employment in manufacturing, and they are disproportion-
In addition to the rise in non-standard employment, self-employment has ately represented in occupations in the health, education and social
also increased from around three million to over four million people since the
sector, where the potential for automation is more limited, and demand
1990s. The figure soared from 2002 to 2012, in particular, driven mainly by an
increase in self-employment without employees, which has been declining is rising strongly. On the other hand, other occupations with a high
again since the beginning of 2012. Various factors have contributed to this rise: share of female employment are in areas where routine cognitive activ-
the growing importance of the service sector and especially the creative sector, an ities can be automated relatively easily (e.g. administrative and office
increase in outsourcing to reduce costs, a liberalisation of trade law, and a period
activities, the banking and insurance sector). Other key factors which
of very difficult labour market conditions which prompted labour-market support
programmes to help unemployed individuals set up their own businesses. Since will determine how the digital transformation influences women’s
2012, with the labour market situation improving, there has once again been a career prospects are how occupations and the organisation of work
decline in the number of new businesses being set up. change in the course of digitalisation, whether the status of personal
services is upgraded, and the extent to which traditional role assign-
ments thus become obsolete. New manufacturing processes also offer an
opportunity to move beyond typical gender roles, for example if manu-
facturing work becomes more process-driven.50
48 See Arnold et al. 2016.
49 The Federal Ministry of Labour and Social Affairs has commissioned academic studies
into the short- and long-term effects of various forms of non-standard employ-
ment for the Federal Government’s Fifth Report on Poverty and Wealth, which will
be published in 2017; see RWI – Leibniz Institute for Economic Research 2016 and
Lower Saxony Institute for Economic Research (NIW) 2016.

50 50 See Bultemeier/Marrs 2016. 51

Challenges Challenges

Labour Market Forecast for 2030: changes in employment in selected Besides the possibility of job losses, there is an intense debate about
sectors, 2014–2030 (in 1,000s) whether far-reaching automation processes could result in employment
and wage polarisation. Employment polarisation would occur if middle-
Total -23 skilled employment were hit particularly hard by job losses while the
240
425 employment of low- and high-skilled individuals simultaneously
Misc. business services
531 increased. This shift in demand would also lead to a polarisation of
335
Social sector, homes
306 wages. To date, however, there is no evidence of this in Germany, or of any
Placement and hiring out 260 collapse in middle-skilled employment.51
of workers 244
218
Health sector
180 Employment and wage polarisation would have significant impacts ---» While great caution is needed
Business, legal and 168 on society, namely a shrinking middle class and rising inequality overall. in interpreting forecasts, one important
tax advice 317
125 Forecasts emphasise that action must be taken to avoid such a scenario question for the future will be how the
Education and teaching
142 in future, particularly in the areas of safeguarding employment, securing transition to an Economy 4.0 can be
Computers, electronic and 75
optical products 198 incomes, and skills development. The aim must be to give the entire labour prevented from leading to a further

IT services
71 force new opportunities in the structural change which lies ahead and polarisation of the labour market
239
to enhance their ability to adapt (→ Chapter 4.1). Upskilling at all levels with growing income inequality, or,
Research & development 57
119 plays a key role in this context. 52 With regard to all of the forecasts, if this cannot be prevented entirely,
Financial services 26 however, it should be borne in mind that while they can offer a certain how the effects can be cushioned in
-19

Vehicle construction 8 amount of guidance they cannot provide any certainty and are based on social terms. «
-13
106 past experience. » Social Sciences Institute of the Evangelical
Church in Germany
Construction
-57

Telecommunications -19
-32

Postal and courier services -28

-60
Chemical and oil -29
products -71

Energy -30
-30
Publishing, film, TV -47
and radio -25

Retail -70
-168
Manufacture of -169
basic metals -216
Hotel, restaurant and -244
catering industry -259

Mechanical engineering -285

-134

Public administration -372

-427
-600 -400 -200 0 200 400 600

Baseline Accelerated
scenario digitalisation scenario

51 See Dengler/Matthes 2015; Dustmann et al. 2009; Antonczyk et al. 2010.

Source: Vogler-Ludwig et al. 2016 52 Vogler-Ludwig et al. 2016; Bonin et al. 2015; Arntz et al. 2016b.

52 53
Challenges
---» No one will be able to get by in
working life without digital literacy in
future. At the same time, those with good
skills will have more and better chances
for interesting, demanding and fulfilling
jobs. Rather than expecting to be able to
work in the job they have trained for and
in the same environment forever, people
must be willing to use their skills flexibly
to regularly take on new challenges.
German Association for Information Technology,
Telecommunications and New Media (Bitkom)
54
Challenges
FURTHER STUDIES ON EMPLOYMENT IMPACTS
Since the beginning of our consultation process, several studies have been
published on the impacts of Industry 4.0 on employment in Germany. In
most cases, the conclusion has been that there will be significant shifts between
occupational groups, but no significant job losses. For example, the labour
market forecast produced by the Federal Institute for Vocational Education and
Training (BIBB) and the Institute for Employment Research (IAB) found practi-
cally no change in total employment in an “Industry 4.0 scenario” over the period
to 2030 compared to a baseline scenario (–60,000/–0.1 per cent). 53 A survey
carried out by the Cologne Institute for Economic Research (IW) shows human
« resources managers to expect that more staff will be needed in the medium
term, especially for digitalised companies.54 The Boston Consulting Group (BCG)
expects a net increase of 350,000 jobs by 2025,55 arguing that rising productivity
also leads to rising demand, both for new products and for skilled workers. This
hypothesis is backed up by a study of regional employment impacts in Europe,
which found that around 11 million new jobs were created in Europe between
1999 and 2010 as a result of technological change.56
Further hints are provided by the views of workers themselves. In a survey,
2.2 DIGITAL PLATFORMS: NEW
four out of five respondents stated that the technological equipment used in their
job has changed over the past five years. Yet (only) 13 per cent of respondents
are afraid that their own job will be performed by a machine in the next ten
years. 57 This, incidentally, matches closely the 12 per cent whose activities are
highly susceptible to automation, according to the analysis applying the Frey/ MARKETS AND NEW FORMS OF WORK
Osborne study to Germany. Another analysis finds that 15 per cent of workers
face high risks in this regard. 58 Although these figures do not mean exactly the
same thing and their similarity may be a coincidence, they do offer a ballpark
We are currently witnessing how the basic digital innovations of
figure of sorts. And it is indeed a substantial figure – around one-seventh to
one-eighth of all workers – if a long way from the 47 per cent suggested by the recent years – smartphones, mobile internet, cloud computing – are
original Frey/Osborne study. being combined and turned into one new business model after another
(→ Chapter 1.1). For many people, these technologies are already part
All of the forecasts emphasise that the digital transformation will increase the
of everyday life. They use search machines, upload their own videos to
dynamism in the labour market. The BIBB-IAB forecast anticipates a significant
decline in manufacturing jobs and increases in IT and science. The BCG study platforms, listen to music from the cloud and buy things online.
predicts almost a million new jobs in IT and data analysis and more than
600,000 fewer workers in manufacturing occupations; the Labour Market Forecast The term “platforms” is used as a general label for these new busi- ---» Already today many self-
for 2030 offers similar figures. For companies, this means that digitalisation
ness models, which act in – sometimes global – multi-sided markets. employed individuals offer their
will exacerbate rather than resolve skilled labour shortages. The new jobs will
primarily be created in sectors where shortages already exist. « Such platforms act as an intermediary between groups of users within services online, and this is part of
an overarching “ecosystem”. These groups can be providers and their entrepreneurial freedom. «
consumers of mobility services, holiday homes or web development German Confederation of Small and
services, for example. The following differentiation seems useful: 59 » Medium Sized Enterprises (BVMW)
53 Federal Institute for Vocational Education and Training (BIBB) / Institute for
Employment Research (IAB) 2015.
54 Hammermann/Stettes 2015.
55 Boston Consulting Group (BCG) 2015.
56 Gregory et al. 2015.
57 Federal Ministry of Labour and Social Affairs (BMAS) 2016a.
58 Dengler/Matthes 2015.
59 Similar distinctions are found in, for example, Leimeister et al. 2016a. 55
Challenges Challenges

• Social communication platforms (such as Facebook, Xing, or Twit-

ter), which are intermediaries for personal information, such as mes-
sages, photos, and audio and video recordings, and which facilitate
communication between users.
These types of platforms are very rapidly transforming markets and
market structures. They have a high growth potential due to the very
low marginal costs of an additional user of digital goods and services
(scale effects) as well as the increase in their attractiveness for other
users with every additional user (network effects). However, this

• Digital marketplaces (such as eBay, MyHammer or Kleiderkreisel),

---» The spectrum stretches from
the “after-hours” crowdworker, who
performs small digital jobs after
finishing work for the day, to people
offering comprehensive services – often
in the creative sector – to shifting
groups which carry out complex tasks
with decentralised skills.
German Association for
which offer a virtual location for providers and consumers to find each
other, without the platform operators intervening directly in the trans-
actions. This category also includes non-commercial sharing plat-
forms, in the narrower sense of the word, which facilitate collective use
of goods or infrastructures.
• Intermediary platforms (such as Uber, Helpling or Airbnb), which
intervene in the interaction between market participants to varying de-
grees, for example by setting rules on prices and the specifics of the
products or services being traded. Thus, they are not pure intermediar-
ies. This category includes, in particular, service platforms in the
“on-demand economy”, with services usually being carried out on-site.
«
• Crowdworking platforms (such as Upwork or Amazon Mechanical
Turk), which function as intermediaries for clearly defined packages of
growth in users is not necessarily mirrored by an increase in the number
of people directly employed by the company which runs the platform.
Platforms for on-demand services and crowdwork do not usually ---» The software company Intuit
see themselves as employers, but rather as pure intermediaries which predicts that freelancers will account for
facilitate market transactions, and as technology providers which lower around 40% of the US labour market
users’ transaction costs . It is therefore widely expected that the platform in 2020. The share will not be as high in
economy will lead to an increase in self-employment, especially solo
self-employed persons , who can offer their services and products
Germany, but nor will we escape the
general trend. All stakeholders must
simply and inexpensively via platforms. 60 While there have been very therefore take this trend into account
dynamic developments in this area in the United States in recent years, and develop resilient, flexible and open
this has not been the case in the German labour market so far. » models for the organisation of work
which support solo self-employed indi-
At the moment, it is difficult to say how important digital platforms viduals even during economic crises. «
are for value creation and employment in Germany, as the necessary
data is not available. Figures for secondary activities or solo self-
Alliance of German Designers (AGD)

Social Security Research and Policy (GVG)

digital work, often based on open requests. « employment based on representative surveys do not indicate a rise in
self-employed activities in Germany so far. Nor can the information
provided by individual platform operators be combined to produce
reliable data.
Types of digital platforms

SOCIAL DIGITAL INTERMEDIARY CROWDWORKING

COMMUNICATION MARKETPLACES PLATFORMS PLATFORMS
PLATFORMS
Intermediaries for the Intermediaries for Intermediaries
Intermediaries for exchange of products and services which intervene for workers,
contacts and (personal) services which do not in transactions, usually for
information, as well as intervene in transactions, especially on-demand IT-related services
communication between as well as “sharing“ in the services
users narrower sense

e.g. Xing or Facebook e.g. MyHammer or e.g. Uber, Helpling or e.g. UpWork or Amazon
Kleiderkreisel Airbnb Mechanical Turk

ACCEPTANCE AND PREVALENCE TO DATE

Source: Federal Ministry of Labour and Social Affairs

60 Most platforms stipulate in their conditions of use that the registered service providers are
self-employed (independent contractors). The issue of “misclassification” is being hotly debated
56 in the United States. See Schmidt 2016. 57
Challenges
---» Ideally, there should be a more
nuanced analysis of the transformation
of work by sectors, occupations or fields
of work. An industrial worker who has
to get used to having robots as
“colleagues” on the shop floor is affected
by the transformation of the world of
work in a different way to a freelance
software programmer who increasingly
finds that relevant work is being allo-
cated via crowdworking platforms. « both advantages and disadvantages: a high level of self-determination,
Federal Association of
Human Resources Managers (BPM)
---» Crowdworking and click-
working may be of interest for school-
children or students who want to earn
some pocket money on the side, and for
entrepreneurs who want to gain know-
ledge at many people’s expense and
earn money by taking this approach.
In my opinion, you can’t support a
family with this kind of work. « in the digital economy, where avoiding “perfect competition” – at least
7 May 2015 via Facebook
58
When it comes to the digitalization of the world of work, crowdwork
is one of the most hotly debated topics. The impacts for workers are
quite different from those in the context of Industry 4.0 . Tasks are
outsourced to a large number of people (the “crowd”) by posting
requests online. Registered crowdworkers then carry out these tasks.
There are competition-based models, where only a single solution is
accepted from all those submitted, and collaborative models, where
tasks are carried out jointly or via a division of labour.61 Views on the
pay and working conditions involved often differ very widely. In cases
where crowdworkers act as self-employed workers, the situation has
but at the same time often a high degree of economic uncertainty
regarding employment and income. ««
61 See, for example, Leimeister/Zogaj 2013; Benner 2014.
Challenges
Yet there is not just one form of crowdwork – the spectrum ranges ---» Platform work (crowdwork) has
from clickworkers who carry out simple tasks for a few cents, to demand- massive implications for industrial
ing and well-paid activities, such as in IT development or testing. 62 The relations, the social partnership, co-
more granular activities and work packages are, the more likely they are to determination, workers’ rights, pay and
be outsourced and – provided that they can be digitalised – “crowd- working conditions, and the social
sourced”. In some large companies, internal crowdworking takes place. security systems (...). Crowdworking as
In this case, individual branches, teams or workers compete against a form of work is poorly paid in many
each other. » areas today, usually well below the
minimum wage, with no social protec-
A representative survey of companies in the information industry has tion. Crowdworkers do not receive sick
shown that three per cent of companies in this sector are currently pay, do not have compulsory social
making use of crowdworking , in the sense of crowdsourcing. The level insurance coverage and have no rights
of use has barely changed in comparison with 2014. As work in the infor- to be involved in decision-making. «
mation industry is comparatively well-suited to being divided up and German Trade Union Confederation (DGB)
parcelled out online, the level of crowdworking in other sectors is
likely to be even lower. 63
In the debate on the effects of digital platforms, key players in the
business community advance the view that platform monopolies cannot
be avoided.64 In fact, they argue, monopolies are desirable both in business ---» It is important to recognise the
terms and for society. Banning monopolies would mean preventing techno- opportunities offered by these new
logical progress. They regard “winner takes all” as the principle for success ways of organising work. They lower
barriers to entry, and SMEs in rural re-
for some time – increases the benefits for customers. gions which find it difficult to recruit
and retain skilled workers can particu-
On the other side of the debate, the term “platform capitalism” has larly benefit from these approaches. «
gained wide currency. 65 It is argued that a new form of capitalism is Association of German Chambers of Commerce
and Industry (DIHK)
emerging in which the major platform operators are setting the rules
and undermining existing standards of protection and worker partici-
pation rights. Those who hold this view argue that digital platforms are
exploiting their market power in an unacceptable manner. Forms of social
coexistence which used to be organised differently, for example with
neighbours and friends helping each other, are being subjected to market
mechanisms, they claim, and digital platforms are commercialising the
private sphere.
62 See Leimeister et al. 2016b.
63 The survey was carried out in the third quarter of 2016. It showed that only 1.2 per cent of
manufacturing companies use crowdworking; Ohnemus 2016.
64 Thiel 2014, for example.
65 Lobo 2014, for example 59
Challenges
---» The debate on the future of the
working world often makes solo
self-employed individuals seem in need
of protection. But that is more the
exception than the rule. Solo self-
employed individuals are often success-
ful skilled workers and leaders who, as
IT experts or interim managers, do not
need protection, but rather the freedom
to ply their trade.
German Confederation of Small and Medium Sized
Enterprises (BVMW)
---» It is important to recognise the
opportunities offered by these new
ways of organising work. They lower
barriers to entry, and SMEs in rural
regions which find it difficult to recruit
and retain skilled workers can particu-
larly benefit from these approaches.
Association of German
Chambers of Commerce and Industry (DIHK)
60
Challenges
A third position emphasises the possibility of a more sustainable, soli- Platforms offer many benefits for customers. But they also offer ---» Not only does crowdworking not
darity-based and democratic economic order. 66 Proponents of this view self-employed workers, as suppliers or contractors, simple access to lead to standard employment relation-
argue that the possibility of greater sharing and joint use of resources markets and in some cases niche markets, also known as the “long ships with compulsory social insurance
means that ownership is losing significance, the sharp distinction between tail”.68 There is also talk of a new movement of “makers”.69 These include coverage, it actually puts these employ-
producers and consumers is becoming blurred, and innovative means of producers and traders who sell through these platforms, or app program- ment relationships at risk. As neither
production are no longer reserved for large, financially strong companies. mers. On the other hand, platforms for on-demand services and crowd- statutory protection under labour law
work can result in standard employment being replaced by insecure nor industry-specific, collective agree-
Challenges and tensions employment. In the United States, where this trend is further advanced, ment, or statutory minimum wage
Regarding digital platforms, one area of tension concerns the network a discussion is taking place about a “gig economy” in which employ- regulations apply to crowdworkers,
effects described above: the more users a platform has, the more rapid- ment takes the form of short “gigs”, and the platforms’ terms and condi- they are engaged in a direct underbid-
ly it becomes a standard, as rising demand leads directly to an improve- tions and rating systems leave workers little freedom, even though they ding war with standard business owners
ment in service and so attracts further customers. While this means that are formally self-employed. 70 Due to fluctuating levels of work and a and those employed by them. «
the platform becomes more useful for the providers and consumers using high level of social insecurity, those providing services are at high risk German Confederation of Skilled Crafts (ZDH)
it, it also means that there are significant barriers to entry for compet- in the event of accidents, illness and unemployment, as well as in old
ing platforms. 67 This is due to the fact that the centralisation of previ- age and in the event that they require long-term care. In addition, wage ---» Global mobility of labour and
ously decentralised marketplaces promotes the development of dominant and salary employees have (protective) rights which do not apply to the outsourcing of projects in small
market positions. self-employed persons. » and micro packages to (solo) self-
« employed workers could undermine
Another key dilemma for providers of services for which digital plat- Compared with wage and salary employment, platforms most likely minimum wages. «
forms act as intermediaries is the fact that the increase in autonomy is result in a transfer of risk from companies to self-employed suppliers. Bundesagentur für Arbeit
accompanied by an increase in uncertainty and dependence. As plat- That said, highly specialised and well-paid experts, for example in the
forms lower the transaction costs between market participants, they field of programming and design, have a different level of bargaining ---» It must be determined whether
make it easier for individuals to become self-employed. This opens up power than people offering to perform less skilled work. » fair social standards can be established
new employment and income possibilities for people who want to work in the field of internet-based work «
more autonomously or who have previously been unable to participate in At present, it is impossible to foresee to what extent digital platforms Conference of the Labour and Social Affairs
Ministers of the Länder
the labour market. The operators of digital platforms emphasise that will replace work with compulsory social insurance coverage with new,
many of their service providers are motivated to work on the platform insecure forms of employment. It will depend above all on whether
« because it offers greater scope for entrepreneurial decision-making and platforms engage in unfair competition with regulated services by system- ---» New digital forms of work and
a better balance between work and personal commitments. « atically circumventing applicable quality standards and rules governing contracts are developing in the labour
the protection of workers and consumers, or even liabilities for tax and market. These fall outside the scope of
social security contributions. The key question is to what extent plat- the labour market institutions which
forms are exploiting legal grey areas regarding the status of workers in were, after all, originally created to
order to cut costs and thereby gain a competitive advantage over exist- offset the imbalance of power in the
ing companies. The need for action resulting from this is examined in market, as individuals would other-
greater detail in Chapters 4.3 and 4.7.» wise be at its mercy if contracts were
negotiated individually. «
Bremen Chamber of Labour
66 Rifkin 2014, for example.
67 The Green Paper on Digital Platforms published by the Federal Ministry for Economic Affairs 68 Anderson 2007.
and Energy (BMWi) (2016) discusses how a balance can be found between the necessary 69 Anderson 2013.
parameters. 70 Slee 2016; Hill 2015. 61
Challenges
---» The social market economy
only produces optimal results if the
rules of the game are the same for all
competitors. Otherwise, there is a danger
of competition which rewards social
dumping rather than innovation.
Social Sciences Institute of the
Evangelical Church in Germany
62
However, new and innovative business models which are currently
emerging should not be stalled by premature regulation without a
proper assessment of their development potential and effects. Digital
platforms can produce important economic and social benefits.71 The
crucial question is what those platform-based business models could
« look like – whether commercial or, for example, cooperative-based –
which are compatible with the principles of the social market economy
(→ Chapter 4.3).
2.3 BIG DATA:
THE RAW MATERIAL OF
THE DIGITAL ECONOMY
A heartbeat registered by an ECG, a whisper over the telephone, a
swipe across a smartphone, an item scanned at the supermarket check-
out: every movement, touch, sound and image which is recorded by a
sensor or camera generates machine-readable data which can be
stored, analysed, disseminated and even sold. The principle is not new.
What is new, however, is the sheer volume of data available today due
to constant improvements in technical collection and storage possibil-
ities, as well as the “intelligence” and speed of data analysis.72 Big Data
is a gigantic and rapidly growing volume of unstructured mass data
produced by numerous decentralised sources. Data mining, i.e. the use
of powerful computers and suitably programmed algorithms to carry
out a targeted search for useable information in the mass of raw data,
can “see” connections between different datasets and compare them –
even in real time – making it possible to identify previously unknown
patterns. In the case of personal data, the analysis can help to identify
individuals or groups of people who fit certain criteria or behave in a
certain way, in order to draw conclusions regarding their future behav-
iour: the likelihood that they will buy products or services they are of-
fered, make certain decisions or take action in defined situations.73 »
71 Mandel 2016.
72 Markl et al. 2013.
73 PricewaterhouseCoopers (PwC) 2013.
Challenges
A lot of new business models are based on people voluntarily provid- ---» Following the internet’s revo-
ing their personal data when using online digital services, for example lution in interpersonal communication,
a navigation system, a health app or a discount card, or when visiting we are currently seeing another leap:
e-commerce, communication or work platforms. 74 It is not just people to an Internet of Things. Over 50 billion
themselves who provide their data, but increasingly also the items they objects (machines, systems, robots,
own: data can be collected and transmitted not only by smartphones or building systems, etc.) are being given
fitness wristbands, but also by cars, heating systems or electric house- IP addresses, making them digitally
hold appliances. » accessible and connectable. (...)
At the same time, huge quantities of
Commercial Big Data applications seek both to identify an individual’s data are being generated (Big Data),
preferences and to ensure that planning takes place on the basis of the analysis of which can offer both
more reliable and the broadest possible data: in connection with the opportunities and potential risks. «
organisation of mass communication, for example, or the management
Bremen Chamber of Labour
of complex technical processes in industrial production, the energy
sector or transportation.
The more the economy and public administration are digitalised, the ---» Health-related data must be
more data that can be related directly to employees is collected and securely protected. New technical
stored. The whole spectrum of human resources management – from developments cannot be stopped, which
the application process, to time and attendance recordkeeping, to perfor- makes it all the more important to
mance evaluation and payroll – is administered digitally in most organi- avoid using products which are not
sations. People who work with digital applications constantly produce data fully mature and to require extensive
which enables almost all behaviour at work to be observed, recorded or tests before products are brought to
reconstructed. In the case of office jobs, it is possible – at least in theory – market. In this context, the self-
to fully document and analyse every keystroke, every save or deletion, governing professional organisations,
every online search, and all communication, for example by email. » which have a great deal of expert
knowledge, must urgently be involved
As digital applications become more widespread in industrial processes, in developments at an early stage.
commerce and logistics, more data is being produced in these areas too. “Health” apps and wearables also
RFID technology allows employees’ location on the site to be pinpointed require standardised regulation. «
and their identity to be determined via their company ID cards, chips Federal Association of Liberal Professions (BFB)
sewn into their workwear or suitably equipped tools. GPS can be used
to locate external workers, for example in logistics, at any time. Mobile
devices provided by the company allow all user activities to be recorded.
Data glasses, data gloves and smart tools register every step in the work
process. Machines check that work – maintenance work, for example – is
performed correctly.
74 Lanier 2014; Morozov 2013. 63
Challenges
---» The Green Paper recognises the
challenges for employee data
protection against the background of
Big Data. From our perspective, too,
the danger of data misuse is higher in
the digital world of work. Employee
data protection must therefore – and
especially in the course of interna-
tionalisation – be rigorously reviewed
and enhanced. (...) The protection of
privacy rights and informational
privacy remain high priorities even
in the digital world of work.
Rail and Transport Union (EVG)
64
While much of this personal data is simply a by-product generated
while carrying out work, there are increasingly also applications which
can only function properly if they can access a personal user profile.
Such applications can be used to support people, for example in the
case of digital assistance systems which can adapt to the needs of
people with disabilities or draw attention to poor posture, or location
tracking systems which help users to avoid unnecessary travel time on
a company’s site or in traffic.
« connections, interpret variables incorrectly or imply clarity where none
Challenges
Challenges and tensions ---» The automation of goods flows
Like all technical progress, digitalisation has both advantages and with the help of RFID (Radio-Frequency
disadvantages. This is also reflected by the debate on Big Data : on the Identification) and MEMS (Microelectro-
one hand, it offers significant benefits for companies, public adminis- mechanical Systems) will create trans-
trations, the health system and society as a whole. On the other hand, parency in material flows along the
new risks are emerging, linked to ethical and legal questions as well as entire value flow in real time. Workers
challenges to data security and protection.75 These risks fuel old fears will no longer need to carry out time-
of total surveillance and a loss of privacy and freedom. »» consuming checks and tracking tasks.
Tools and systems will know their
Big Data is based on models and algorithms which analyse past optimal life via systematic analysis,
data, identify connections and use them to make predictions. Such paving the way for predictive mainte-
complex models are prone to error; for example, they can suggest false nance. The use of the means of produc-
tion and employees’ workflows will
exists. There is also a danger that the results can be misinterpreted. take place with maximum efficiency. «
Risks arise as well where people and social relationships become the Robert Bosch GmbH
subject of analysis, ratings and forecasting: firstly, people can be
manipu lated more easily when their preferences are known and their
behaviour can be predicted, and, secondly, there can be feedback effects
once people begin to adjust their behaviour in response to analysis ---» I would like to see more educa-
tools, for example to receive the best possible ratings. tion on the subject of data protection!
After all, it’s ultimately about our free-
Data security is becoming a key problem for companies and society. dom and our right to privacy, and surely
While in traditional data processing, customer data was held by banks, that concerns us all. «
insurance companies, public administrations or companies in databases 11 Mar. 2016 via arbeitenviernull.de
hosted separately on local servers, mass data today is generated in large
volumes via internet-based communication and stored in clouds. This
makes it easier to input data from the network, merge data from different
sources and access it from different locations. At the same time, how-
ever, data security requirements are rising in order to effectively counter
the dangers of unauthorised access and data misuse. Many companies
have to invest in expensive network security architectures in order to
protect their company secrets, their expertise and customer and employee
data from industrial espionage, attacks by hackers or sabotage. The
state also needs to take steps in this context: the greater or more central
75 Schirrmacher 2015; Kucklick 2014; Hofstetter 2016; Welzer 2016. 65
Challenges
---» Digitalisation is boosting both
the quantity of data being collected
and processed (“Big Data”) and its
quality (“Smart Data”). Such huge
quantities of data must be organised
and managed, on the one hand,
while on the other hand security
issues are becoming more relevant.
Gesamtmetall – Federation of German
Employers’ Associations in the Metal and
Electrical Engineering Industries
---» Increasing digitalisation is
forcing many SMEs in the liberal
professions to draw on the expertise of
external IT service providers instead of
having in-house staff for this. The
resulting possibility for third parties to
learn confidential information
entrusted to a member of the liberal
professions by clients or patients offers
a high potential for conflict.
Federal Association of Liberal Professions (BFB)
66
electronic control of civilian or military infrastructure becomes possible,
the more vulnerable society becomes. Cyber-attacks on information infra-
structures in Germany and abroad have become more common, complex
and professional in recent years.76 » has already been taken: in April 2016, the European Parliament and the
Citizens have their own responsibility in this context. On the one hand,
they must feel reassured that services they use online are secure; but
« on the other hand, they also have to take responsibility for deciding who
to trust, which applications to use, and what data to provide. The fact
that people have limited choice in these matters within a company con-
text makes employee data protection an especially sensitive subject.
The fear of total surveillance and loss of privacy is deeply rooted in
Germany, partly as a result of historical or personal experiences of total-
itarian states. In the era of Big Data , very extensive monitoring is pos-
sible. State regulation of data protection is therefore needed on the
basis of an intensive public debate about what should be permitted.
This regulation must clearly specify the limits of what may be moni-
tored, and by whom. At the same time, however, the advantages of Big
Data should be realized and business models which are based on the
« analysis of Big Data should not be made impossible in Germany.
There is a tension between data protection and economic interests,
which might be partly resolved to the degree that a higher level of data
protection becomes a competitive advantage.
Silicon Valley’s protagonists, whose companies are home to a great
deal of the data collected worldwide, often do little to allay people’s
fears. The “totalitarian tendencies” 77 of Silicon Valley are not inherent
in the technology; instead, many of the business founders based there
pursue ideological as well as economic aims78 and have a vision of a new
“post-privacy” era.79
76 Federal Ministry of the Interior (BMI) 2011; Federal Office for Information Security (BSI) 2015.
77 Lanier 2014; 2015.
78 Keese 2014; Siebenhaar 2016.
79 Heller 2011.
Challenges
In Europe, by contrast, there is a broad consensus that trust in the
security and protection of personal data is a fundamental prerequisite
for a peaceful and successful digital transformation. An important first step
Council of the European Union adopted the European General Data Pro-
tection Regulation , which creates an equivalent level of legal protection
for all people in the EU regarding the collection and processing of person-
al data. This makes it easier to deal with data and data protection in the
European single market, which had previously been complicated by a
patchwork of 28 national data protection laws (→ Chapter 4.5).
2.4 INDUSTRY 4.0 AND
THE HUMAN-MACHINE
INTERACTION
The use of pulleys in early antiquity or the Babylonians’ use of pumps
to irrigate fields can be regarded as early examples of human-machine
interaction. However, the way in which people and machines interact
with each other has undergone repeated changes ever since. Neologisms
such as “Industry 4.0” or “cyber-physical systems” describe the most
recent paradigms in industrial production (→ Chapter 1.1). At the same
time, they encapsulate a qualitative leap forward in the collaboration
between humans and machines. The digital interconnectedness of all
workers, tools and workpieces in the production process and across
company boundaries is generating an “Internet of Things and People”.
Highly developed sensors make it possible for people and robots to
work together in ever closer proximity, as machines are able to register
their users’ behaviour with ever greater precision, thanks to technologies ---» Technology must make
allowing better speech and image recognition, emotion detection, and people’s lives easier. «
the registration of eye movements and gestures. » Social Organisation Germany (SoVD)
67
Challenges
---» Human-robot collaboration
makes it possible to optimally combine
humans’ cognitive superiority and
flexibility with robots’ strength,
endurance and reliability. Humans will
always be at the heart of this process –
no machine in the world can come
close to human flexibility. This will
make it all the more important to
combine human beings and technology
in an intelligent manner. « work – digitalisation is transforming the entire socio-technical system
Daimler AG
68
Human-machine interaction is taking on a new dimension due to devel-
opments in the field of artificial intelligence (AI). Self-learning algo-
rithms (machine learning) and the parallel analysis of vast quantities
of information (→ Chapter 2.3) are enabling AI applications to adapt to
people in line with the situation at hand, and to carry out a large number
of complex tasks in close collaboration with them. Although practical
implementation has not yet been achieved in some areas, there are
signs that this has significant potential to transform everyday working
life, both in industry and in the service sector, where knowledge-intensive
occupations will be particularly affected.
In industrial manufacturing, a new generation of robots is emerging
with progressive advances in AI. While in recent decades robots were
primarily used to automate simple production steps, the latest indus-
trial robots are now also capable, thanks to AI-based high-performance
sensors, of taking on fine-motor tasks and interacting directly with their
human co-workers. These “cobots” (short for “collaborative robots”)
perceive their surroundings in diverse ways, paving the way for safe
physical human-machine collaboration. The previous spatial separation
of people and robots is becoming irrelevant; the machines are leaving
the “cage”. Cobots are also easier to programme than their predecessors
and are often equipped with self-optimising algorithms , enabling them
to learn from their human colleagues. « situational and specific
Challenges
In the service sector, too, a wide range of possible uses are opening up:
for example, new high-performance speech recognition and text process-
ing applications are now allowing simultaneous spoken translation, the
automated production of complex standard texts and simple corre-
spondence, or the analysis of large volumes of text for legal purposes.
In medicine, intelligent image recognition software can vastly improve
the diagnosis of many diseases and boost doctors’ capabilities. In the
long-term care sector, interactive systems are being trialled which are
designed to enhance the mental and emotional well-being of older and
elderly people. In short: whether in industrial, service or knowledge
of people, process and technology (→ diagram).
Transformation of the socio-technical system as a
consequence of digitalisation
PEOPLE
Assignment of functions New delineation of
on the basis of tasks and roles
strengths
TECHNOLOGY PROCESS
Connected decentralised processes and
integration of functions in real time
Source: Federal Ministry of Labour and Social Affairs, based on Hirsch-Kreinsen 2016.
69
Challenges
---» The German social insurance
system is already working with
data-processing systems which
generate a result without human
intervention. These workflow solutions
relieve staff of routine activities « intersection of people and process, the question of how tasks are deline-
Social Insurance System Trade Union –
Women’s Representation
---» Work 4.0 can be a realistic
opportunity to relieve workers of
physically demanding and dangerous
tasks. This is particularly interesting
in a phase of demographic change
when the average age of workforces is
rising and businesses are increasingly
required to create appropriate jobs
for older workers. « stressful. This can prevent unhealthy physical and psychological strain.«
Bremen Chamber of Labour
---» Digitalisation offers those who
are currently not benefiting from the
good labour market situation the
chance to access employment. For
example, people with disabilities can,
with the appropriate continuing
vocational education and training,
gain entirely new job prospects, moving
away from sheltered workshops and
towards the regular labour market. « a much higher level of learning in the working process. Tasks can be
The Young Entrepreneurs (BJU)
---» The workers in the factory of
the future will be expected, more than
ever before, to coordinate processes,
manage communication and take
autonomous decisions. « are increasing. This can make it easier to balance work and personal
German Engineering Federation (VDMA)
70
At the intersection of people and technology, functions will be assigned
in new ways on the basis of situational and specific strengths. At the
intersection of process and technology, hierarchically separated sub-
processes which have previously taken place in sequence will be replaced
by integrated, simultaneous and decentralised processes. And at the
ated and roles assigned arises anew. The transformation of human-
machine interaction thus offers new opportunities to shape work and
production processes, relieve workers of routine activities, develop
workers’ skills and, not least, make it easier to achieve a good work-
life balance.80 « a low level of expertise and experience, for example if the worker receives
Shaping human-machine interaction in an appropriate way in which
older workers can make an important contribution to securing Germany’s
supply of skilled labour. Non-ergonomic jobs can be replaced and people
can be relieved of the burden of carrying out tasks which are physically
demanding, involve difficult motor activities or are psychologically
This also opens up new possibilities for participation in work, as assis-
tance systems can help to compensate for physical or sensory impair-
ments. Older workers can work for longer and more healthily, and peo-
ple with disabilities can take on jobs which were hitherto closed to them.
This boost to capabilities also applies in the cognitive field: intelligent
assistance systems can create greater scope for decision-making by
ensuring that useful and suitably presented information is available at
all times. «
Looking to the future, intelligent tutoring systems could facilitate
designed and allocated in such a way as to take into account and sys-
tematically support the individual physical and mental capabilities of
the person working with the autonomous system. Meanwhile, the degree
to which work is tied to machine cycles is declining as greater flexibility
is introduced and work processes become more integrated, while the
possibilities of human-machine interaction independent of location
commitments. «
80 Acatech 2016.
Challenges
Challenges and tensions
However, interacting in and with complex and increasingly autonomous
systems also poses challenges. Several areas of tension can be identified:
Firstly, there is a tension between upskilling and deskilling. The spe- --- » Here, digitalisation means
cific design of human-machine interaction can “enrich” activities for automation, standardisation, more
workers by making them more complex and introducing a greater level monotony, more monitoring of results,
of responsibility, with the machine providing assistance in dealing with but above all the destruction of “old”
the new range of tasks. However, it can also lead to once complex activ- jobs, with a few new ones for less
ities being simplified and completely standardised so that they only require money. Is that okay? «
4 May 2015 via arbeitenviernull.de
an instruction for each work step or merely responds to set signals, with
many of his or her skills going unused. »
Both scenarios can result in new risks of unhealthy psychological and ---» In many areas, digitalisation
physical strain, for example if the work environment is largely automated, also leads to work processes being
leaving only monotonous leftover activities to be carried out by people. greatly simplified, which can result in
Alternatively, working in complex, integrated and autonomous systems highly monotonous (leftover) work.
could lead to a high level of work intensification and a far-reaching All that is left are activities which
breakdown of the boundaries around work , with the risk of new psy- machines are mechanically unable
chological strain. 81 » to perform (as yet). This opens up
additional employment possibilities
A second area of tension relates to the importance of experience. If for workers with very limited basic
the growing capabilities of autonomous systems increasingly relegate skills, but at the same time it also
humans to the role of overseeing automated processes, staff have little leads to the question of how this work
chance to gain experience in the working process. The “irony of auto- can be organised in a way which is
mation” is that automation actually results in the person overseeing adapted to the worker in future. «
the process becoming less and less capable of solving problems in the German Retail Federation (HDE)
automated system – problems which, while increasingly rare, continue
to occur. And yet it is precisely when something goes wrong that people
are needed who know from experience how to deal with problems in
autonomous systems via communication with the machines. 82 The chal-
lenge is therefore to ensure that systems based on artificial intelligence
do not devalue skilled workers’ necessary knowledge and experience.83 »
81 Pfeiffer 2015.
82 Ittermann et al. 2015.
83 Apt et al. 2016; Windelband/Dwortschak 2015. 71
Challenges
---» In organisational terms, the
question is how much space remains, as
efficiency and automation increase, for
resilience in companies; what happens,
in other words, if a highly automated
system malfunctions and targeted
intervention is necessary to return the
system to a safe operating status.
Institute of Industrial Engineering and
Ergonomics (IAW) at RWTH Aachen University
72
Challenges
Another area of tension is the need to weigh the possibilities for indi- The reality of Industry 4.0 and the Internet of Things will usher in ---» The digital workflow can
vidual support and behavioural monitoring against each other. Data a wave of implementation. For business reasons alone, the scenario of provide support by integrating work
which was initially generated for the purpose of process optimisation extensive automation is likely to be rare in practice. Key factors in ensuring processes and dealing with high-
can also be used to monitor performance or behaviour. The closer the that implementation is successful include the continuation of an intensive volume activities, but artificial intelli-
integration between humans and machines in performing work, the debate in society and in the workplace about the aims of the use of digi- gence cannot replace the empathy
more staff become locatable, and their performance and work behaviour tal technologies and intelligent machine systems, and a lively culture of humans supply. In an area as sensitive
documentable (→ Chapter 2.3). If robots are to respond to a worker’s participation and continuing vocational training which enables workers as social insurance, there is a human
« actions and, for example, move away to avoid injuries, this not only requires to put their experience and process knowledge to use in designing the life behind every ‘file’. And this person
suitable sensors but also data about the worker’s movements and location. arrangements for technology use, but also to assert their needs as users. » will continue in future to need a
Autonomous warehouses need to know at what intervals workers call up human being who can offer him or
the next workpiece. “Smart” gloves and data glasses can only support her guidance and advice on social
an unskilled warehouse worker effectively if certain data is available about security matters. «
the employee and the work to be performed.
2.5 FLEXIBLE WORKING
Social Insurance System Trade Union – Women’s
Representation
What will become reality in the world of tomorrow depends not only on
technical feasibility and economic profitability, but also on how society TIME AND LOCATION:
negotiates and shapes developments. Two scenarios are conceivable.84
In a highly technology-centric scenario with extensive automation of BEYOND PRESENTEEISM
many work processes, the “human share” would be reduced to activities
which cannot or should not be automated for technical, socio-economic
or ethical reasons (e.g. activities in the field of long-term care). One Flexible work arrangements with regard to time and place do not only ---» Over the life course, a wide
conceivable consequence would be highly polarised organisations with a affect collaboration in the workplace, they also have a strong impact on variety of events can require people to
small number of workers carrying out simple tasks which would be mainly communities. They determine what windows are available for family, shift their work-life balance and can
determined by others, and a group of highly skilled planners whose skills leisure, recreation, continuing vocational education and training, or mean that they desire or need flexi-
would be significantly above the current level for skilled workers. volunteering. It is important to note that preferences and needs can bility, especially in terms of their
change over the life course: people can have different working-time working time. «
What is equally possible, and preferable from society’s perspective, is needs in periods when children, caring responsibilities or personal pro- Hans Böckler Foundation
a human-centric scenario, in which people remain the managing and jects are taking up a great deal of their time, for example, and their needs
decision-making authority and the repository of experience, while their will be different when approaching retirement as compared to other
role in the working process is upgraded via smart tools and assistance periods in their working lives. » ---» In light of demographic change,
systems . Looking to the future, the separation between management people must be able to organise their
and execution could be eliminated and replaced by a loose network of working time flexibly when they are
highly skilled workers taking action on an equal basis. This requires, not planning and starting a family. «
least, an upgrading of skills in all business areas, however. Association of German Cities
84 Hirsch-Kreinsen 2014. 73
Challenges
---» Modern means of communica-
tion make flexible working arrange-
ments possible, which allows working
time to be organised in new ways.
This will make it easier to accommo-
date the needs of organisations
and workers in designing flexible
working hours.
Confederation of German
Employers’ Associations (BDA)
---» Work 4.0 fulfils workers’ desire
for greater working time sovereignty.
This is positive from the employer’s
perspective, too. For example, greater
flexibility has the advantage that work
can be better carried out at short
notice, and travel time can be used
more efficiently by working on a
laptop. In addition, flexible working
arrangements are beneficial in
retaining skilled workers and
recruiting new staff.
Federation of Chemical
Employers’ Associations (BAVC)
---» In skilled crafts, despite
digitalisation, the worker’s presence
at the customer’s site or the location
where the work is to be performed will,
in practice, remain an essential
part of our work.
German Confederation of Skilled Crafts (ZDH)
74
Challenges
The trend towards working time flexibility and decentralised work lo- Prevalence of evening, night and weekend work
cations is continuing in the context of digitalisation (→ Chapter 1.1).
Broadband internet, network technologies and mobile devices mean 30%
that tools and content can be accessed from anywhere, around the
25%
clock. 85 Digitalisation can facilitate flexibility in both directions: sup-
porting companies’ needs regarding the organisation of work, but also 20%
supporting workers’ needs and preferences.86 The possibility of working
15%
« from home can also be extremely convenient for people with reduced
mobility. What impact digitalisation will have in practice and what po- 10%
tential can be realised depends on the specific technical implementa-
5%
tion, individual usage, and how it is incorporated in the workplace, in
legislation and collective agreements. The specific circumstances in in- 0%
1992 2014
dividual occupations and sectors also play a major role. To learn more
about what issues are of particular importance to workers, companies Evening work Saturday work
as well as staff representation bodies are carrying out employee sur-
Night work Sunday work
veys and feeding the results into the ongoing discussion about how to
shape these developments. «
Quelle: Statistisches Bundesamt/WZB 2016.
Changes in customer needs and value creation processes were an im-
portant reason for greater flexibility in the recent past. Greater use of
external (e.g. temporary agency work, contracts for work and services,
outsourcing) and internal (e.g. working time regulations) potential for Locational flexibility, with shifting places of work, is also standard ---» New flexibility compromise:
« higher flexibility is increasing the demands placed on workers and con- for many workers, for example in the case of maintenance, servicing people already work flexibly. Nowadays,
tractors in terms of time flexibility and mobility (→ Chapter 2.6). One and installation work or sales work. Around one in five workers in both partners work. Not necessarily in
in four workers works in the evening, while one in ten works at night. Germany travel for work-related reasons, whether by changing their exchange for more time for personal
The figures are similar for work on Saturdays (26 per cent) and Sundays place of residence for work, or in the form of long-distance commut- matters or more money. When will
(14 per cent). 87 Compared to 1992, there has been a significant overall ing, business trips, travel to meet customers or travel to attend meet- companies give something back? «
increase in the proportion of workers who work in the evening, at night ings and trade fairs. 88 » 22 Apr. 2015 via arbeitenviernull.de
and on weekends (→ chart).
«
85 Two-thirds of all white-collar workers are at least occasionally reachable at home. Even among
blue-collar workers, the equivalent figure is just under 50 per cent, and the level of reachability
has increased for both groups in recent years. See Federal Ministry of Labour and Social Affairs
(BMAS) 2015b.
86 Federal Ministry of Labour and Social Affairs (BMAS) 2015c.
87 Federal Statistical Office (Destatis)/Berlin Social Science Center (WZB) 2016, p. 137–138.
According to the 2016 report published by the Federal Institute for Occupational Safety and
Health on working time in Germany, working at the weekend on a regular basis is widespread 88 Regarding mobility for work, see Ruppenthal/Lück 2009; see also the 2007 Good Work Index
today and affects 43 per cent of employees, with a roughly equal divide between workers who produced by the German Trade Union Confederation (DGB). Regarding the growth in business
only work on Saturdays or who also regularly work on Sundays and public holidays (Federal travel, see the analyses of business trips produced by the Business Travel Association of Germany
Institute for Occupational Safety and Health (BAuA) 2016a, p. 41). (VDR); regarding trends in the posting of workers, see Hupfeld et al. 2013. 75
Challenges
---» Tomorrow’s workers will
autonomously and responsibly
organise when, where and how to carry
out their work in line with their own
interests and needs and the requirements
of the type of work in question. « work-life balance. Many employers are already responding to workers’
Robert Bosch GmbH
---» Many companies now have
flexible working time models or
support workers in balancing demands
on their time in other ways, and this
plays a key role in securing
skilled labour. « for Employment Research (IAB), almost a billion hours of unpaid over-
Association of German Chambers of Commerce
and Industry (DIHK)
---» So far, relatively little use is
being made of models such as working
time accounts, which enable workers
to save up time that they can take off
in future, e.g. for a sabbatical or
at times when they have family or
caring responsibilities. « time employees work 43.5 hours per week on average, almost five
German Confederation of Managers (DFK)
76
Besides technological changes, cultural and societal changes also
affect the issue of flexibility: people’s life plans have become more
individual and diverse, traditional role conceptions are dissolving, and
values and preferences regarding work have changed (→ Chapter 1.4).
Many workers would like to have more sovereignty to achieve a better
need for greater autonomy with regard to when and where to work, for
example by individual working time models, long-term accounts , sabbat-
icals or homeworking options.89 « compatible with, for example, a day-care centre’s opening hours, the time
Nonetheless, many workers’ wishes regarding the length and sched-
uling of their working time and homeworking remain unfulfilled.
According to the working time calculations published by the Institute
time and around 800 million hours of paid overtime are currently
worked per year in Germany. 90 In addition, holiday entitlement is not
fully claimed: a study by the German Institute for Economic Research
(DIW) finds that in 2010 around 37 per cent of full-time employees did
not take the full amount of holiday time to which they were entitled in
the previous year. According to the study, around twelve per cent of the
total holiday entitlement was not taken.91
According to the Working Time Report Germany 2016 published by
the Federal Institute for Occupational Safety and Health (BAuA), full-
hours more per week than contractually agreed. More than half of
them would like to reduce their working time – irrespective of whether
or not there are children in their household. They wish both to reduce
89 Working time accounts exist in 89 per cent of companies (survey of 1000 human resources
managers; Randstad-ifo-flexindex, 2016) and employees are offered the option of working part-
time in 81 per cent of cases (survey of 700 companies, Chamber of Commerce and Industry of
the Stuttgart Region (IHK Region Stuttgart) 2015). According to a current survey of workers carried
out for the Federal Ministry of Labour and Social Affairs, long-term accounts are now offered
to four in ten workers. However, one in ten of those surveyed does not know whether an account
of this kind is available to him or her, which points to an information deficit (Himmelsbach et al.
2016). A representative TNS survey of organisations concluded in 2010 that long-term accounts
are used in just two per cent of organisations in Germany (Riedmann et al. 2011). Only just under
a third of German companies with more than 50 employees offer homeworking options; see
Federal Ministry of Labour and Social Affairs (BMAS) 2015b.
90 For 2015, the Institute for Employment Research found that there were 940 million hours of
unpaid overtime and 764 million hours of paid overtime. This means that every employee worked
on average 19.7 paid and 24.3 unpaid hours of overtime during the year; Institute for Employ-
ment Research (IAB) 2016a. The Federal Statistical Office reports lower figures on the basis of
the Microcensus. As the question on overtime in the Microcensus is optional, it is likely to under-
report the true figures.
91 Schnitzlein 2011. No more recent analysis is currently available.
Challenges
their contractually agreed working time, and to not have to constantly ---» As long as employers basically
work more than contractually agreed. By contrast, over a third of part- insist on excessive punctuality and
time workers would prefer to work longer hours. Women account for 84 per overtime, flexible working hours are a
cent of the part-time workers who would like to increase their hours.92 » utopia. #arbeitenviernull «
16 Mar. 2016 via Twitter
Many workers are also dissatisfied with the scheduling of their work-
ing time. Even a small shift in when working hours begin or end, or the
choice of certain days, can determine whether a (full-time) position is
when a carer arrives, continuing training or volunteer work. According
to a survey carried out for the Federal Ministry of Labour and Social
Affairs, 37 per cent of workers would like to change the scheduling of
their working time. 93 This is in particular workers who are required to
be reachable outside working hours, who work in the evenings, at night
or at the weekend, who have to be on call, who work shifts or have
staggered work schedules, who are not allowed to take longer breaks,
who are in fixed-term employment, or who do not have flexitime and/
or a long-term account.
When it comes to the choice of working location, the preferences of
many workers currently remain unfulfilled. Germany is lagging behind
other European countries (especially Denmark, Sweden, the United
Kingdom and the Netherlands) when it comes to working from home. 94
Yet there is demand: almost 40 per cent of white-collar workers who cur-
rently lack this option would like to work from home regularly or occa-
sionally, including a disproportionately high number of parents with
children under the age of 14. 95 Furthermore, working from home can
give people with disabilities new opportunities in the labour market.
It can also open up new career prospects for people in lagging regions.
92 Federal Institute for Occupational Safety and Health (BAuA) 2016a. The Federal Statistical Of-
fice concludes that fulfilling all wishes regarding working time would increase the total volume
of working time. In total, the untapped working potential in 2014 was equivalent to more than
half a million full-time positions; see Renger 2016.
93 The vast majority (89 per cent) of respondents who expressed a desire to change the scheduling
of their working time also want to change the number of hours, although in most cases what is
desired is a reduction in the number of hours worked in practice. If one looks at all respondents,
a third would like to change both the scheduling and length of their working time, whereas
merely around four per cent want to change the scheduling alone; Himmelsbach et al. 2016.
94 Brenke 2016.
95 Federal Ministry of Labour and Social Affairs (BMAS) 2015b. 77
Challenges
---» Always this fear that people
would automatically work themselves to
death if working hours weren’t laid down.
#digitalisation
#arbeitenviernull « shift away from the “presence culture”. Alongside these positive aspects,
31 Jan. 2016 via Twitter
---» The requirements regarding
flexibility, mobility, reachability
and self-organisation make it essential
to take a focused look at working
time and occupational health. « Likewise, the use of flexibility options can lead not just to changes
Rail and Transport Union (EVG)
---» Greater flexibility in terms of
working time is desirable, but it is
important to provide protection from
self-exploitation in this context. « responsible management and reasonable staffing estimates. The follow-
22 Apr. 2015 via
arbeitenviernull.de
---» The increasing decoupling of
the place of work from the actual
organisation poses a challenge in terms
of the design of work locations
outside the actual organisation. «
Robert Bosch GmbH
78
Challenges
Challenges and tensions Firstly, the flexibility needs of companies and workers are not identical. ---» It should be ensured that a
The trend towards flexibility in working time and location, which is being Thus, a suitable balance must be struck. For companies, factors which balance is struck between time sover-
reinforced by digitalisation, offers opportunities for greater self-deter- play a major role – alongside employee satisfaction and positioning eignty and operational requirements. «
mination in relation to work, new solutions for work-life balance, and a themselves as attractive employers – include labour and cost efficiency, Gesamtmetall – Federation of German Employers’
the coordination effort required, quality of service, and staff availability. Associations in the Metal and Electrical Engineering
Industries
however, it is also becoming evident that working from home, trust- For workers, important advantages include greater time sovereignty ,
based working time and an expectation for workers to be reachable at all the ability to better balance work and family life, and a more flexible and ---» A new flexibility compromise,
times, are causing a “breakdown of the boundaries” 96 of work. The partnership-based approach to sharing family commitments. A better i.e. the use of digital opportunities for
lines between people’s working and personal lives, between work and work-life balance can also have a positive impact on health.99 » a self-determined work-life balance,
leisure, between workplace and home become blurred. This can cause must focus on the workers and take
stress and poses new challenges in terms of health and safety at work. « Alongside protection for workers, greater flexibility also plays a vital their interests into greater account. «
role in balancing different needs. The Working Time Report Germany German Trade Union Confederation (DGB)
2016 shows that, overall, more than one in seven employees experience
and improvements in how people work, but also to an increase or inten- frequent changes to their working time due to operational require- ---» The new level of flexibility in
sification in their work. 97 It is also becoming evident that women and ments, while around one in four experience such changes occasionally, work and forms of work requires inno-
men use self-managed working time differently, which can lead to an and that these flexibility requirements have a negative impact on workers’ vative strategies to ensure the safety
entrenchment of traditional roles.98 With regard to work location and the health and job satisfaction. More than one in five respondents work in an and health of those affected, even in
equipment available for mobile working, the question is how, for example, environment where they are expected to be reachable at all times. Rising non-standard jobs, where the lines
comparable standards of ergonomic protection can be ensured as for expectations on the part of employers and customers regarding workers’ between work and the personal sphere
workstations at the traditional place of work. The way in which working availability can place particular pressure on those who have to combine are blurring (e.g. working on the move
time is organised cannot be separated from pay and the organisation’s their employment with care work. According to the Working Time Report, or in the living room at home). «
“performance policy”. It must also be linked to a good corporate culture, it is not just those in senior positions who are expected to be reachable German Statutory Accident Insurance (DGUV)
during their leisure time. Often it is workers in lower occupations (es-
ing challenges must be taken into account by employers and works pecially in the service sector) who are expected to be reachable outside --- » There is a risk that the new
councils, the social partners and legislators, in this context: « working hours and are frequently contacted. This breakdown of 100
forms of digital, round-the-clock
boundaries can result in work-related strain – which can have many reachability will, rather than improv-
causes – carrying over into leisure time, making it harder for users of ing the situation for women and
flexible work arrangements to rest and recover. » people with family commitments,
result in increased strain. «
United Services Trade Union (ver.di)
99 See, for example, Amstad et al. 2011.
96 The question of whether “breakdown of boundaries” is an appropriate term or too judgemen- 100 Workers are disproportionately likely to be expected to be reachable outside working hours in,
tal is contentious. As the term is widely used in the discussion in the social sciences, it is also for example, agriculture, animal-related and forestry occupations (45%), non-medical health
used in this publication; see, for example, Gottschall/Voß 2003; for criticism of the term, see occupations and medical technology (e.g. care for the elderly, wellness occupations, funeral
Mayer-Ahuja/Wolf 2005. workers: 34%) and in safety, security and monitoring occupations (32%). 28 per cent of people
97 For example, those who work entirely or partly from home do more overtime than workers who in senior positions are frequently expected to be reachable; the figure is 19 per cent for people
do not work from home; see Federal Ministry of Labour and Social Affairs (BMAS) 2015b. without management responsibility. See Federal Institute for Occupational Safety and Health
98 See, for example, Lott/Chung 2016. (BAuA) 2016a, p. 77, 82. 79
Challenges
---» It is important not to overlook
those areas where greater flexibility is
not an option. In production depart-
ments, for example, set times, on-site
work and shift schedules will continue
to be necessary in future. « many workers who want clearly defined and reliable working hours and
Gesamtmetall – Federation of German Employers’
Associations in the Metal and
Electrical Engineering Industries
---» In our view, these expectations
[of greater autonomy in working time]
should not be solved individually; they
can only be resolved cooperatively. It
must be ensured that assertive workers
do not gain greater freedom at the
expense of others in the workforce. « other workers or contractors work on-call, or are on fixed-term contracts
Industrial Mining, Chemical and
Energy Union (IG BCE)
---» However, homeoffice and
flexible hours must not be offered –
for the company’s benefit – only
to “high performers”. « for example, lead workers to regard the statutory breaks and rest periods
Rail and Transport Union (EVG)
---» I don’t want my flexibility
and my own ability to decide
when and where I work to be limited
by works agreements, health and
safety laws, etc. « with disabilities.
22 Apr. 2015 via arbeitenviernull.de
80
Secondly, there are often widely varying expectations and needs with-
in a workforce regarding the organisation of working time and location.
On the one hand, there are groups of workers who see greater flexibility
as an opportunity for greater self-determination in their work and would
therefore like more individual options. On the other hand, there are also
who do not want to take their work home with them. In addition, there
are groups of workers for whom flexibility options are either not feasible
or very limited.«
Thirdly, this can result in polarisation between groups of workers,
even beyond the boundaries of an individual organisation, because the
extent to which the conditions are in place for flexibility in working time
and location varies for different sectors, fields of activity and groups of
workers. While in-demand skilled workers are in a position to enforce
their preference for control over their working time and location, many
to cover temporary gaps, or work in sectors where their options are actu-
ally declining in the “round-the-clock economy”. « individual preferences.
Fourthly, tensions can emerge between individual preferences and
collective regulations. A high level of identification with their work, a
strong performance culture in an organisation or career ambitions can,
established for their protection as a form of paternalism, and to choose
to ignore them. «
Fifthly, greater flexibility can, for many, also lead to marginalisation,
for example if technical aids are not fully accessible for people with dis-
abilities. Accessibility is therefore an important issue. Otherwise there
would be a danger of digitalisation raising new obstacles for people
Challenges
And finally, operational needs can clash with societal preferences for ---» In addition, the interests of
fixed windows of shared free time which support a lively community SMEs must not be overlooked in the
and civic engagement. The more mobile and flexible the world of work discussion about flexibility in working
becomes, the more important collective agreements and work agree- time and location. In staffing, financial,
ments become, together with a complementary statutory framework technical and organisational terms,
which continues to protect windows of shared free time (especially they can quickly reach their limits when
Sundays and public holidays), as well as a corporate culture which enables it comes to implementing such models.
people to “switch off” and go offline. The question is thus how SMEs can be
supported appropriately. «
Policy-makers can support small and medium-sized enterprises Association of German Chambers of Commerce
(SMEs), in particular, in developing appropriate solutions in this context. and Industry (DIHK)
Large companies have experience and implementation-related knowledge
which can serve as a reference and a starting point, but often this cannot ---» A new compromise is required
be directly applied. SMEs have the advantage that they can more easily between employers’ interests and
offer individual solutions for individual workers. In some cases, however, workers’ needs... The primary aim must
they first need to obtain information and concrete implementation- be to find solutions which align ope-
related knowledge. In addition, smaller businesses often lack adequate rational requirements regarding reach-
resources in their personnel departments to implement changes. » ability and availability with workers’
«
In view of the challenges and tensions set out above, employers, Rail and Transport Union (EVG)
works councils, the social partners and the state should contribute to
solutions which ensure a fair balance of interests. In this context, new ---» Greater flexibility must meet
technical possibilities must be used to facilitate an organisation of two separate sets of needs: those of the
working time which takes into account both workers’ changed needs company, which has to work cost-
and businesses’ rising flexibility requirements. In this way, new flexi- effectively, and those of the worker,
bility compromises can be negotiated on the basis of a culture which who must meet individual family
promotes agreements. » commitments, for example. «
Gesamtmetall – Federation of German
Employers’ Associations in the Metal and
Electrical Engineering Industries
81
Challenges
2.6 COMPANIES: ORGANISATIONAL
STRUCTURES IN
TRANSFORMATION
---» Very often, it is not up to
employers whether they want to go
along with these developments or not.
Firstly, companies are coming under
pressure from competitors which are
already embracing the digital trend
and thus can work more quickly
and cheaply; secondly, customers
also have clear expectations of
companies regarding rapid and
efficient processes. « for just 0.7 per cent of all businesses, but provide 40 per cent of all jobs.102
Bavarian Industry Association (VBW)
---» Employees collaborate world-
wide, but at the same time are
increasingly competing with each other
for work. Digital connectivity and
cloud infrastructures mean that work
and services no longer have to be
performed at the company’s facilities.
This is resulting in a high level of flexi-
bility regarding where and when work
is performed. This is perhaps the most
important change in the world of
work at present. « opportunities for influence and participation – vary depending on the
Hans Böckler Foundation
82
The previous sections have described the various processes which, as
part of the digital transformation, are changing the conditions for business
and work. Technological change, internationalisation, accelerated inno-
vation and product cycles, innovative services based on Big Data , and
a new way of involving customers and dealing with customer wishes are
shaking up value creation processes and posing entirely new require-
ments for the flexible organisation of how people work – both with
each other and with software and/or machines. Companies and organi-
sations are the place where all of these changes come together and
where their effects on industrial relations are felt. «
The “traditional” organisational principle, that of large, vertically inte-
grated, hierarchically organised companies which manufacture stand-
ard products in large quantities, organise manufacturing steps internally
where possible, and secure a supply of skilled labour primarily through
the long-term retention and internal upskilling of their own staff, has
long since ceased to be as popular as it was in the heyday of the indus-
trial era. Nonetheless, no one single new paradigm can be identified as
having replaced it.
Over time, changes to a company’s organisation have been accompa-
nied and driven forward by diverse management models such as “lean
production” or “lean management”, sociological analyses of the “end of
the division of labour”, but also by major changes in corporate govern-
ance – not least the trend towards financial investors having greater
influence on corporate decisions. 101 Regarding all of the above, it must
be kept in mind that a company’s organisation must always – like workers’
type of enterprise, the sector, and the size of the organisation (→ box).
101 Windolf 2005; Nölke 2014.
Challenges
BUSINESS CHARACTERISTICS IN FIGURES
The most recent figures from the Federal Statistical Office’s Business Register
show that Germany has around 3.63 million businesses. Almost 2.3 million are sole
traders, more than 450,000 have the legal form of a partnership (e.g. OHG, KG),
around 666,000 are corporations (e.g. GmbH, AG), while the rest have other
legal forms.
99 per cent of businesses are small and medium-sized enterprises (SMEs);
they provide 60 per cent of all jobs. In turn, the vast majority of these busi-
nesses are micro-enterprises (80 per cent of all businesses, 18 per cent of all
workers); small enterprises make up 15 per cent of all businesses and 22 per
cent of all workers, and medium-sized enterprises make up almost three per
cent of all businesses and 19 per cent of all workers. Large enterprises account
In 2015, employees had co-determination at the workplace level under
the Works Constitution Act (Betriebsverfassungsgesetz) in almost every tenth
organisation in Germany with at least five workers. The larger the organisation,
the more common it is for there to be a works council or staff council: the pro-
portion is just five per cent for organisations with five to 50 workers, while 88
per cent of organisations with more than 500 workers have a staff representa-
tion body. In total, 42 per cent of workers in organisations with five or more
workers have a works council. This share has declined by around ten percent-
age points since the start of the 1990s, which is primarily due to reductions in
the category of organisations with 51 to 500 workers.103
If the organisation of working conditions via a collective agreement (sectoral
or company-level agreement) negotiated between employer representatives
and trade unions is also taken into consideration, the proportion of workers
who are covered rises. However, 36 per cent of private-sector workers in western
Germany and 49 per cent in eastern Germany are not covered by a collective
agreement or represented by a works council.
102 Federal Statistical Office figures for 2013. The Federal Statistical Office makes the
following distinctions: micro-enterprises: up to 9 workers and up to 2 million euros
in annual turnover; small enterprises: up to 49 workers and up to 10 million euros in
annual turnover; medium-sized enterprises: up to 249 workers and up to 50 million
euros in annual turnover; large enterprises: up to 249 workers or over 50 million euros
in annual turnover.
103 Ellguth/Kohaut 2016. 83
Challenges Challenges

Collective agreement and works council (WC) coverage, 2015*, At present, it is still unclear to what extent the digital transformation will ---» The biggest opportunities in
in per cent continue to displace the integrated company and the workplace as the connection with the digitalisation of
physical location for value creation, and to reinforce the trend towards value chains can be found in the
Western Germany
networked companies, 105 which make the most of the possibilities of improvement of the flexibility and
Percentage of workers of which:
digitally and internationally connected, customer-focused value crea- efficiency of production processes and
Private Manu- Con- Services
sector facturing struction tion to provide “smart” or customised products and services with low- a more direct focus on the customer

WC and sectoral agreement 27 46 10 22 er transaction costs . In sectors which mainly produce digitisable via customised products and services.
WC and company agreement 7 9 4 6 goods and services – such as the media and publishing sector and the The changes in the world of work,
WC and no agreement 9 12 2 7 music industry – the transformation which has already taken place especially with regard to skills develop-
Sectoral agreement, no WC 20 10 57 24
since the end of the 1990s shows the fundamental transformative ment, greater flexibility and leadership
Company agreement, no WC 2 1 2 1
No agreement and no WC 36 23 25 40 potential of digitalisation.106 » philosophy, are an important aspect
Total 100 100 100 100 of digitalisation. «
Workers in companies 47 56 67 46 No one single paradigm exists in the digital economy either, even if Daimler AG
with a sectoral agreement
Workers in companies 42 67 16 35
many business models aim to achieve a dominant market position.
with a works council While some platforms concentrate on their core business as an inter- ---» Customers’ preferences will
mediary for services and seek to remain as lean as possible in organi- continue to change as a result of digi-
Eastern Germany
sational terms, companies such as Amazon are systematically expand- talisation. They are developing more
Percentage of workers of which:
ing their value chain towards content production and last mile logistics. individualised wishes regarding prod-
Private Manu- Con- Services
sector facturing struction In other words, digitalisation does not necessarily result in radical ucts and greater expectations regard-
WC and sectoral agreement 14 15 9 15 new forms of organisation for companies in all cases. Yet it offers the ing the service provided by companies.
WC and company agreement 11 16 6 11 potential to take familiar trends to a new level, especially in the ser- Companies – and thus their workers –
WC and no agreement
Sectoral agreement, no WC
8
15
20
5
1
49
7
19
vice sector. » must respond to this, if they want to

Company agreement, no WC 2 1 1 3
succeed in the market. «
No agreement and no WC 49 43 34 45 The question is whether there will still be such a thing as a “standard Confederation of German Employers’ Associations
(BDA
Total 100 100 100 100 company” in future, and what this means for the standard employment
Workers in companies 29 20 58 34
relationship . Will we have more virtual companies with a small core
with a sectoral agreement
Workers in companies 33 51 17 33 and a flexible periphery? Taking the model of the traditional company ---» Over 70% of employment is now
with a works council and the standard employment relationship as a starting point, three in the service sector. The focus must be

*Basis: private-sector companies with 5 or more workers, excluding agriculture and axes of change can be identified in how companies and work are on growing, forward-looking sectors
not-for-profit organisations. organised (→ figure on p. 86). The types of change along the “greater and, accordingly, it is important not to
external flexibility” axis are well known. Outsourcing, in the sense of develop the strategies for “Work 4.0”
Source: Ellguth/Kohaut 2016
transferring work which was previously carried out internally to sub- by taking industry as the starting point.

There is also a downward trend in co-determination by workers under the
laws on parity co-determination or one-third employee representation on
supervisory boards. An analysis by the Hans Böckler Foundation found that 635
companies were covered by the 1976 Co determination Act (Mitbestimmungs-
gesetz) in 2015, more than 100 fewer than the peak reached in the mid-2000s.
It is estimated that around a further 1500 companies currently have corporate
co-determination in accordance with the Act on One-Third Employee Rep-
resentation in the Supervisory Board (Drittelbeteiligungsgesetz).104
contractors located within the country or abroad (offshoring), was a key To achieve “good work” for as many
element of the rationalisation which took place during the structural workers as possible amidst the digital
changes of the 1990s, in particular; it applied to simple, discrete work revolution, the transformation process-
steps in manufacturing, but also services in the fields of administration, es in the social service sectors, in par-
sales and marketing. This trend has tended to increase recently. Instru- ticular, must be placed centre stage. «
ments such as temporary agency work or contracts for work and ser- United Services Trade Union (ver.di)
vices help, on the one hand, to increase flexibility in labour utilisation

104 Bayer 2016.

105 Castells 2003.
84 106 Apt et al. 2016. 85
Challenges Challenges

---» Digital business models, plat-
forms and services are creating new
forms of work, such as crowdworking.
They are characterised by highly
flexible working which can be indivi-
dually determined. The discussion
about Work 4.0 should not aim to
define a new standard employment
relationship. What was defined as
standard in the mid-1980s is no longer
standard today and will be even less so
for future generations. « POINT OF REFERENCE:
German Association for Information Technology,
Telecommunications and New Media (Bitkom)
(for example, to cope with peaks in demand), and to purchase specific form industrial relations and the world of work for employees. Numer- ---» Increasingly, other forms of
services. Sometimes, however, they are misused to permanently replace ous responses to the Green Paper also draw attention to this. » jointly organised collaboration will
standard employment with other forms of employment. « emerge, for example if entire teams
The organisational forms and working contexts shown along the collaborate solely in a virtual space
Flexible ways of organising companies and work horizontal axis are focused inward. Certain aspects of quantitative (e.g. in the cloud), without any
flexibility in internal labour utilisation are well known: fixed-term con- geographical connection. Often
GREATER EXTERNAL FLEXIBILITY AND tracts and part-time work have long been established elements of this enough, the lines will blur between
EXTERNAL TRANSFER OF BUSINESS RISK
(→ box on labour-market trends, p. 49). In particular, more differentiated these two organisational forms. «
working time models have recently gained in importance, partly in response German Retail Federation (HDE)
External crowdsourcing
to operational flexibility needs, and partly in light of workers’ wishes and
Outsourcing
preferences (→ Chapter 2.5). »
Contracts for work and services
THE STANDARD COMPANY Temporary agency work Finally, the digital transformation of the economy has also seen the ---» Temporary work and fixed-term
AND EMPLOYMENT
spread of “agile” forms of project management and product develop- contracts are a very big problem! How
RELATIONSHIP
GREATER INTERNAL FLEXIBILITY ment – frequently inspired by the IT industry, whose approaches and am I supposed to give a company my all
working methods, such as design thinking and Scrum , are now applied when it might give me the cold shoulder

s
---» The decision on whether value «

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22 Apr. 2015 via arbeitenviernull.de

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decision to “make or buy”. Genuine
contracts for work and services must
not be discredited by isolated cases
where they have been misused.
Federation of Chemical
Employers’ Associations (BAVC)
86
In
ib
Fl
ex
SPATIAL DECENTRALISATION
AND VIRTUALISATION
« changes. Finding responses to the – in some cases disruptive – transfor-
Source: adapted from Hofmann/Nøstdal 2014.
One fairly new phenomenon is external crowdsourcing, with work
being outsourced digitally to the crowd. Crowdworking occupies
an extreme position in the options of “make, buy or cooperate” 107
(→ Chapter 2.2). It is not clear at present how relevant this approach,
with labour being purchased on a situational and potentially completely
anonymous basis, will become in the coming years.
In many sectors, including traditional industrial sectors, crowdsourcing
is likely to play a minor role for the foreseeable future. However, it has
long been clear that digitalisation and the reconfiguration of value chains
it has facilitated are also allowing new virtual organisational forms
which stop short of the crowd variants, and this will continue to trans-
107 Sydow/Möllering 2015.
companies. 108 Few companies can now afford inflexible bureaucratic
procedures and decision-making processes or multi-year innovation and ---» It can be very valuable for
development cycles, given the high pace of technological and market companies to move towards targeted
and structured integration of creative
mation of business and production models has become a key challenge. » methods. Using the creativity and
innovative capabilities of in-house staff
The “agile company” could emerge as a potential new model in this can lead to the development of new
context. It places people and their communicative, creative and decision- services and products and help
making capabilities centre stage in a new way: workforces must be companies to secure an advantage
comprehensively empowered to drive forward and test small develop- in global competition. «
ment steps autonomously and at a fast pace. 109 The organisation of Hasso Plattner Institute for
Software Systems Engineering (HPI
work, support for innovation and the design of jobs and collaborative
spaces are elements which, not least in view of this need, require a
change in leadership and corporate cultures. If the transformation is
successful, workers will have opportunities to work more autonomously
and holistically in more independent teams, while companies could
108 See the expert workshop organised by the Federal Ministry of Labour and Social Affairs on
“Socially Compatible Change Management and Good Corporate Management”,
http://www.arbeitenviernull.de/dialogprozess/workshops.html. The workshop showed, among
other things, that numerous conditions must be met if agile methods used in project-related
work are to be applied in other areas of work.
109 Boes et al. 2015; Sattelberger 2015. 87
Challenges
---» It is already foreseeable today
that skills like creativity, network
thinking and disruptive thinking (will)
play a crucial role. « avoided. Or in other words: “agile” must be more than just “lean” in a
Alliance of German Designers (AGD)
---» Visions of global collaboration
in virtual teams across company
boundaries raise questions about
integration, leadership and oversight,
as well as requiring adjustments in
skills, working time and location.
Collaboration between in-house and
external staff in mixed teams and the
integration of highly skilled service
providers for specific tasks are already
a reality today. « All of this requires a modern leadership culture, an effective occupa-
Gesamtmetall – Federation of German Employers’
Associations in the Metal and Electrical
Engineering Industries
---» We need a frank discussion,
right across the economy and public
administration, about how good leader-
ship can and should use existing resources
and unlock people’s potential! « is also important to keep an eye on the risk of workforce fragmentation.
22 Apr. 2015 via arbeitenviernull.de
---» Truly agile companies are agile
and stable at the same time.
#arbeiten40
#arbeitenviernull «
17 Mar. 2016 via Twitter
88
benefit from greater innovation and higher productivity. However,
problems such as a breakdown of the boundaries between work and
private life , and the transfer of business risks to workers must be
new guise. ««
The spatial decentralisation axis also features familiar elements
which are being boosted by the possibility of digital and virtual collab-
oration. The earliest legal provisions on homeworking by wage and salary
employees are over a century old. What is new are the increasingly diverse
possibilities for incorporating employees working outside the work-
place into workflows. This includes better-connected home and mobile
workstations, and virtual collaboration within the company using tech-
nical and software solutions. Internal crowds within a company, which
allow interdepartmental and cross-site teams to be formed to handle
projects before disbanding again, are one possible example of this, and they
can in turn be combined with flexible integration of external workers.
The opportunities of locational flexibility are as obvious as the poten-
tial pitfalls: greater self-determination, new possibilities of combining
work and personal commitments and a better work-life balance are
realistic hopes for the working world of the future. At the same time, it
is becoming increasingly clear that we must first learn how to navigate
the introduction of greater flexibility. Often there are no clear rules. Not
least for this reason, people often find the increased blurring of work-
life boundaries stressful. With regard to collective staff representation, it
This specifically applies to potential shifts in the ratio of the core work-
force to self-employed workers on an organisation’s periphery, which could
have an impact on institutional co-determination . But even setting the
issue of the relevant thresholds aside, the fundamental question is how
the process of identifying and representing collective interests will be
affected as industrial relations become increasingly virtual. 110
110 Wehling 2000; Benner 2014.
Challenges
Even if the “virtual-only” company will not be a widespread economic --- » The opportunities and risks of
reality for the foreseeable future, it is nonetheless clear that greater a digital transformation are not
flexibility is being introduced along the three axes set out above and that diametrically opposed; instead, the
new forms and combinations are emerging in this context. opportunities can only be unlocked by
allaying workers’ concerns and reser-
Regarding all of the issues outlined above, nothing is inevitable; there vations. Potential obstacles must
are always options in relation to a company’s organisation. External therefore be addressed in order to tap
flexibility must be possible in dynamic markets. However, certain limits into digitalisation’s potential for
should be imposed – including via legislation – on the systematic trans- sustainable economic and social
fer of business risks to temporary agency workers or crowdworkers . innovation. This can best be achieved
Co-determination in the workplace, supplemented by participatory if workers are involved and can better
approaches, is a major opportunity to draw on workers’ skills in order participate in shaping their working
to reshape the way in which companies and work are organised, so that conditions. «
they are fit for the future. The same applies to flexibility in working German Trade Union Confederation (DGB)
time and location, which functions more effectively if innovative
approaches to organising work are negotiated between the company
and the workforce or its representatives, as well as within the workforce.
tional health system, and smart human resources management. 111 »
89
111 New Quality of Work Initiative (INQA) 2014.
A VISION FOR QUALITY JOBS
IN THE DIGITAL AGE

3

3. A VISION FOR QUALITY
JOBS IN THE DIGITAL AGE
The trends and challenges set out in Chapters 1 and 2 illustrate the
forces affecting our world of work. While they are certainly transform-
ative, they by no means predetermine the direction in which we are
heading. As a society our aim should be to combine the huge economic
potential of this transformation with social innovation. We are facing
the task to make the most of the opportunities Work 4.0 offers: both
in terms of value creation and productivity; but also in terms of skills-
acquisition and individual self-determination. In order to succeed, we
need to be a learning society open to innovation. And we must define
clearly our goals when it comes to achieving quality jobs.
The vision outlined in this chapter builds on the strengths of the
German economic and social model, which is characterised by a strong
Small and Medium-Sized Enterprise (SME) sector, diversified,
high-quality production, innovative industry, and a strong export orien-
tation. It is important to use this comparative advantage, in order to
stay internationally competitive in the long term while maintaining
high environmental and social standards and taking incremental steps
towards further innovation. 112 Such a strategy allows us to maintain
high wage levels and depends crucially on a highly skilled labour force.
In our view, promoting quality jobs is contingent on balancing security
and flexibility in the future world of work.113 Flexibility without security,
on the one hand, would result in people being unwilling to commit to
sometimes difficult new learning processes. Security without flexibility,
on the other hand, would stifle creativity and innovation. We therefore we
need both: security and flexibility. The state has an important role to play
in driving innovation and promoting technology, but it also serves to
provide security during periods of transformation by actively supporting
high quality, innovation-rich working conditions. 114 Inclusive political
and economic institutions, a long-established system of social partner-
112 Hall/Soskice 2001.
113 Stiglitz/Greenwald 2014.
92 114 Mazzucato 2014.
A Vision for Quality Jobs
ship, and the resulting ability to reach compromises – these are central
pre requisites for success in the current transformation process. 115
They provide the framework for negotiated flexibility in the social
market economy.
The coalition agreement of the current governing coalition at federal
level devotes an entire subchapter to the goal of “good work” and
underlines that “full employment with good and productive jobs” is
of strategic importance for “sustainable progress”. 116 The OECD uses
the term “job quality” and looks at three key issues in this context:
earnings, labour market security and the quality of the working envi-
ronment. 117 The concept of “decent work” as used by the International
Labour Organization (ILO) is defined much more broadly; it has been
incorporated into many UN human rights declarations, reports and res-
olutions, including the 2030 Agenda for Sustainable Development.118
Over the course of the Work 4.0 dialogue, five areas have emerged
which we view as essential components of a vision for quality jobs in
the digital era.
INCOME AND SOCIAL SECURITY
Social protection and an income based on merit and ability are fun-
damental prerequisites for ensuring that every individual can live from
his or her work and can rely on a social safety net even in hard times. It
is important that the potential productivity gains of digitalisation also
lead to wage increases in all sectors. Collective agreements are an im-
portant instrument in this context. The principle of fair remuneration
for performance must be reflected in reliable pay and an end to the
gender pay gap. Collective agreements play a crucial role here, as does
the early provision of vocational guidance and counselling in ensuring a
stable employment history for the individual. In a work-oriented soci-
ety, good social protection systems are particularly necessary when
people are not in work or are no longer able to work. Providing social
protection against the major risks in life, such as old age, illness, acci-
dents and unemployment, will remain a core function of the welfare
state. Where people wish to be self-employed, they should be support-
ed and offered better social safeguards than are currently provided.
115 Acemoğlu/Robinson 2012.
116 Coalition agreement between the CDU, CSU and SPD 2013.
117 Cazes et al. 2015. See also Federal Statistical Office (Destatis) 2015c.
118 United Nations (UN) 2016. 93
A Vision for Quality Jobs
ACCESS TO QUALITY JOBS
Every individual should have the opportunity to access quality jobs,
i.e. secure work offering the possibility of professional advancement. At
all times, our aim should be full employment through high-quality jobs.
People who are not equipped to perform skilled labour need support
and new opportunities. Jobs that offer little in the way of a reliable in-
come or secure prospects will continue to exist in the future. However,
they should not dominate the entire course of a person‘s working life.
And securing employability via skills development will become increas-
ingly important, even for workers with skilled vocational qualifications.
VARIETY AS THE NEW NORMAL:
A LIFE-PHASE APPROACH RATHER THAN RIGID
MODELS OF WORK
These “conventional” needs are being joined by new ones: people’s
preferences and requirements regarding work change over the course
of their lives. In many respects, the idea of one standard employment
relationship for all no longer reflects today’s realities. “Standard” or
“normal” employment relationships are in fact becoming less the norm.
Rather, variety is the new normal, as people move, for example, be-
tween full-time and part-time work; between employment and career
breaks for family reasons, but also between employment and self-em-
ployment. It is questionable whether standard employment relation-
ships should be starkly contrasted with “non-standard employment”,
especially in the case of part-time work (→ Chapter 4.2 and Chapter 5).
The social partners and policy-makers face the task of recognising
diverse preferences regarding work and thus giving people greater
self-determination over the life course. It is important to provide social
protection at times when people are in transition between different
gainful activities or between periods of work and career breaks for
family reasons.
94
A Vision for Quality Jobs
RETAINING THE QUALITY OF WORK
With regard to the quality of work within the digital transformation,
the four key aspects are: dealing with greater flexibility, a changing
interaction between humans and machines, new forms of organising
labour, and the role of Big Data in the production process. They all
carry the potential for making work better, but they can also be a new
source of strain. We must find ways to support new production pro-
cesses and business models and to combine them with a modern sys-
tem of Occupational Safety and Health 4.0 (→ Chapter 4.4).
CONSIDERING CO-DETERMINATION, PARTICIPATION AND
CORPORATE CULTURE AS A WHOLE
Many of these aims require an adequate regulatory framework; the
specifics, however, can best be negotiated and designed by social part-
ners and at the workplace level. Representative structures will contin-
ue to be necessary, but there is also a growing desire for individual
participation in organisations. Institutional co-determination , worker
participation and a good corporate and management culture are there-
fore no contradictions, but complementary. Together, they are the
prerequisites for innovative and democratic companies within an inno-
vative and democratic society.
95
POLICY OPTIONS

4.1 EMPLOYABILITY: FROM UNEMPLOYMENT

INSURANCE TO EMPLOYMENT INSURANCE
4.2 WORKING TIME: FLEXIBLE, BUT SELF-DETERMINED
4.3 THE SERVICE SECTOR: FOSTERING GOOD
WORKING CONDITIONS
4.4 HEALTHY WORK: APPROACHES FOR
OCCUPATIONAL SAFETY AND HEALTH 4.0
4.5 EMPLOYEE DATA PROTECTION:
SAFEGUARDING HIGH STANDARDS
4.6 CO-DETERMINATION AND PARTICIPATION:
SHAPING THE TRANSFORMATION IN PARTNERSHIP
4.7 SELF-EMPLOYMENT: FOSTERING FREEDOM

4
AND SOCIAL PROTECTION
4.8 THE WELFARE STATE: FUTURE PROSPECTS
AND EUROPEAN DIALOGUE
 Policy Options

4. POLICY OPTIONS
The following sections draw conclusions and identify policy options
for the main areas discussed within the Work 4.0 dialogue. Each
subchapter reviews the most important questions from the consulta-
tion process, sets out points on which a consensus exists as well as the
dividing lines, and summarises the most important outcomes of the
discussions. Some subchapters build on analyses from the first two
chapters. Others offer additional findings before drawing conclusions
in the relevant field of action.
ees but also by self-employed individuals, whose number may rise in
the future as a result of the digital transformation. There are key issues
affecting this group of workers that urgently need addressing; ranging
from a good income and social protection to co-determination and
participation issues (→ Chapter 4.7). Chapter 4 concludes by looking
ahead to the future of the German welfare state and social security
systems (→ Chapter 4.8), which will also face challenges in light of the
transformations in the world of work.

The range of policy options stretches from short-term measures,

some of which have already been undertaken or are planned for the
current electoral term, to medium-term measures proposed for the next
legislative period, to prospective projects for the long term. Where
findings have led the Federal Ministry of Labour and Social Affairs to
conclude that no action is needed at present, these results are also pres-
ented. Finally, there are a range of areas where further examination and
studies are needed.

The first subchapter sets out how a high level of employment and
employability can be ensured in the World of Work 4.0 (→ Chapter 4.1).
To secure this even amidst the digital transformation , major efforts
will be needed in relation to skills development and continuing voca-
tional education and training. Questions relating to the organisation of
work, and in particular the organisation of working time (→ Chapter 4.2),
have been an important priority in the consultation process. Here, it is
important to reconcile companies’ flexibility requirements with workers’
preferences. Most of the topics examined in Chapter 4 apply to all sectors,
but at the same time there are special issues concerning work in new
service markets (→ Chapter 4.3). Attention must be paid to safeguarding
conditions for decent and healthy work (→ Chapter 4.4). The same applies
to the right to informational privacy that needs to remain guaranteed
in a digitalised economy and for which employee data protection must
also find answers (→ Chapter 4.5). Wherever workers’ co-determination
and participation is ensured on an equal footing, solutions at the com-
pany-level can be used to tailor statutory requirements (→ Chapter 4.6).
However, the future world of work will be shaped not just by employ-

98 99
Policy Options
4.1 EMPLOYABILITY:
FROM UNEMPLOYMENT
TO EMPLOYMENT INSURANCE
Although forecasts concerned with digitalisation’s impacts on the
labour market come to varying conclusions, they all agree that the pace
of change in the coming decades will be rapid. As occupations and
sectors are transformed, attention needs to be focused more on the
subject of maintaining individual employability amidst this trans-
formation. Full employment in decent jobs for all remains our goal.
For most workers, decent work primarily means a secure, permanent
job and an adequate income which they can live on. 119 The Work 4.0
dialogue mainly concentrated on “new” areas where conflicting prior-
ities are on display within the world of work outlined in Chapter 2. None-
theless, several partners in the consultation process rightly warned that
it is important not to lose sight of the “old” questions. The Federal
Government has taken many steps in the current electoral term to
safeguard and improve stability on the labour market – from the mini-
mum wage, to action to prevent misuse of temporary agency work and
contracts for work and services, to better integration of the long-term
unemployed and of refugees into the labour market.
If we want to maintain a high level of employment in the face of dig-
ital structural change, the distribution of profits through gains in pro-
ductivity will also be a central issue. Corporate profits – including those
of large digital platforms – need to be subjected to taxation. Public
goods and services and a modern infrastructure require sustainable
financing over the long term. A high level of income creates demand
for products and services in growing markets and safeguards employ-
ment in these areas. Consequently, the issues and aims in the field of
labour and social policy raised in this White Paper cannot be regarded
in isolation. They must be dovetailed with an employment-focused
economic policy. For in times of sweeping structural change, a wide
range of instruments are needed in order to achieve the aim of full
employment (→ Chapter 2.1). An enabling macroeconomic framework,
industrial and services policies, and the funding of research and inno-
100 119 INQA 2015
Policy Options
vation are all key elements in the state’s role of helping shape structural ---» Digital profits must contribute
changes while providing a social safety net. « to the funding of social tasks. «
24.4.2016 via arbeitenviernull.de
Labour market policy offers support for labour market integration.
Yet it can and does do more. During the last decade’s global financial and
economic crisis, for example, a forward-looking labour market policy
played a significant part in preventing massive job losses in Germany.
This allowed the German economy to weather the crisis better than
many other countries.
Labour market policy also has a key role to play in shaping structural
change. This too is evident from a look at the past: As early as the mid
1960s, there was a broad public debate about implications of automa-
tion and on how to shape this development.120 It led to the 1969 Employ-
ment Promotion Act (Arbeitsförderungsgesetz), which laid the founda-
tion for preventive labour market policy. Today, half a decade later, the
digital transformation requires a new realignment of labour market
policy aimed at preventing or reducing unemployment and securing a high
level of labour market participation. Particularly in light of the fact that
the potential labour force is expected to shrink as a result of demo-
graphic change, forward-looking steps must be taken to ensure that a
gap does not open up between supply and demand in the labour market.
120 See Der Spiegel 1964. 101
Policy Options
---» The key to shaping the digital
transformation of work lies in our
employees’ skills. The teaching of digital
skills must begin in general-education
and vocational schools, as well as higher
education; occupational profiles must be
adapted; and skills development modules
with practical relevance must be
designed to support lifelong learning.
Daimler AG
---» All levels of the state should
develop and support further new
possibilities for socially useful work,
as a complement to gainful employ-
ment. This could make it possible to
emphasise and consider work’s social
and other aspects, beyond the narrow
concept of gainful employment.
Association of German Counties (DLT)
102
To date, the necessary regular monitoring of future demand for
skilled labour is not yet in place. Such monitoring would provide a reg-
ularly updated forecast of trends in demographic, regional and skills-
related mismatches, and thus also serve as the foundation for a realign-
ment of labour market policy.
To secure the skilled labour base, it will remain necessary to make
use not only of migration but also of existing potential, especially that
« offered by a further increase in women’s employment and the integra-
tion of low-skilled workers. However, it will be just as important, if not
more so, to maintain and boost the employability of each individual.
This makes a forward-looking and strategic skills policy the mainstay of
employment and labour market policy in the digital transformation . « It is already active today in advising SMEs and workers about the labour
ISSUED RAISED IN THE CONSULTATION PROCESS
The responses to the Green Paper identify the securing of employ-
ment and incomes as core functions of future labour and economic
policy. That said, they emphasise varying aspects: while municipalities,
for example, call for creating or expanding publicly funded employment,
« employers put a stress on the need to adapt the skills mix to reflect
changes in labour demand. « training that should be freely accessible for all, and for greater public
Policy Options
The vital importance of education, continuing vocational education ---» SMEs in particular generally
and training, and skills development for a successful digital transfor- lack the resources for systematic,
mation was repeatedly emphasised by experts in the consultation process, strategic, forward-looking human
as well as by studies and responses to the Green Paper. The unanimous resources planning and development.
view is that Germany’s success in the digitalised, globalised world will The Federal Employment Agency
hinge on our readiness to leverage significant efforts in this field. Views therefore intends to focus more on
differ, however, on the conditions under which support should be pro- these companies, as they are in
vided for continuing vocational education and training, in particular, and particularly urgent need of support. «
how it should be organised and financed. Federal Employment Agency
The Federal Employment Agency’s role and importance in relation to ---» We want to see the Federal
skills development is singled out in many responses to the Green Paper. Employment Agency’s existing activities
in the field of continuing vocational
market, skills development and continuing vocational training and up- education and training expanded to
skilling. 121 Both the SME sector and trade unions are calling for these become a comprehensive system. This
activities to be developed further, especially as regards the pooling of means that the employment agencies
continuing training capabilities, for example in the form of regional should offer continuing vocational
employers’ groups.122 The Work 4.0 Working Group set up by the Confer- training to workers in employment
ence of the Labour and Social Affairs Ministers of the Länder is also to a much greater degree. «
calling for an advisory service on continuing vocational education and Industrial Mining, Chemical and
Energy Union (IG BCE)
funding to be made available for quality assurance and the profession-
alization of the staff involved.123 » ---» It could also be helpful, how-
ever, to offer support structures which
There are also advocates of other forms of state support, such as a enable SMEs to pool continuing
wage compensation benefit based on the Austrian model of part-time vocational education and training
training leave.124 Tying in with steps being taken in collective agreements capabilities. Companies could form
in the metal and electrical industries and the call for state action to create employers’ groups on a regional basis
a framework for part-time training leave, the German Trade Union Confed- in order to offer their workers a wide
eration (DGB) argues that the identification of skills needs and support range of continuing training options
for part-time skills development measures should be key elements in which they could not provide alone.
reforming the system for continuing vocational education and training Support from a potential skills agency
and skills development. 125 « could be helpful in this context. «
German Confederation of Small and Medium
Sized Enterprises (BVMW)
121 Federal Employment Agency (BA) 2015.
122 German Confederation of Small and Medium Sized Enterprises (BVMW) 2015.
123 Conference of the Labour and Social Affairs Ministers of the Länder (ASMK),
Work 4.0 Working Group 2016.
124 United Services Trade Union (ver.di) 2015.
125 German Trade Union Confederation (DGB) 2015. 103
Policy Options
---» The model of part-time
training leave picks up on the once
common support for part-time work
leading into retirement, and uses this
model’s mechanisms to support skills
development. The Austrian model is
helpful when considering this possi-
bility: a law on part-time training
leave has been in place since 1 July 2013.
Individuals are able to reduce their
working time in order to undertake
continuing training, and receive a state-
funded “income replacement” benefit
for the reduction in their hours.
United Services Trade Union (ver.di)
---» A high skills level and continuing
development of competencies is in the
interest of both employers and workers.
Skills development helps to secure and
boost companies’ competitiveness and
maintain workers’ employability. In this
context, the principle should be that the
costs are shared fairly between employers
and workers, taking into consideration the
operational and individual benefits.
Federation of Chemical
Employers’ Associations (BAVC)
104
Policy Options
SHAPING THE WAY AHEAD Basic skills are needed in almost all jobs in Germany. Imparting these --- » One particular priority must
The function of labour market policy is to align three different sets of essential skills is a task for the education and vocational training system, be teaching IT skills across the board.
aims and interests. Workers want career prospects and a successful work- which will therefore focus more on digital skills in the future. Lifelong In this context, skills development is
ing life. Businesses need qualified skilled workers , in order to remain vocational learning will also play a much more important role in future. needed at all levels of the education
innovative and competitive amidst the digital transformation . Society The digital transformation is changing the mix of tasks within existing system. STEM skills (science, techno-
has an interest in as many people as possible participating in the labour occupational profiles and leading to a more complex blend of required logy, engineering and mathematics)
market. There is therefore a shared interest in greater investment in skills , which will make additional digital qualifications compulsory in must be taught and developed more
qualifications and skills. « almost all sectors and occupations. Social, communicative and intercul- intensively and holistically, starting in
tural skills, systemic and creative thinking, the capacity for abstract schools. The same applies to higher
Consequently, the Federal Ministry of Labour and Social Affairs intends thinking, and rapid information processing and data selection capabili- education. «
to update the Federal Government’s Skilled Labour Concept, which ties are vital for success in the labour market. Gesamtmetall – Federation of German
Employers’ Associations in the Metal and
was established in 2011, and link it with a skills strategy for the changing
Electrical Engineering Industries
world of work. The most recent progress report on the Skilled Labour Digital literacy , the ability to confidently deal with online sources and
« Concept shows that many targets have already been reached. At the more generally with new, mobile computer and online media (devices,
same time, new challenges have emerged both on the supply side, in Web 2.0 applications), is becoming a basic requirement. In the most recent --- » In future, it will be necessary
connection with the integration of refugees into the labour market, and OECD’s PIAAC survey , just eight per cent of respondents stated that to regard digital skills as an integral
on the demand side, especially as a result of digital structural change.126 they never use a computer in their work. Basic digital skills, then, are element of an individual’s readiness to
already necessary in order to meet professional requirements in almost take up vocational training. Ensuring
To reduce the uncertainties outlined above regarding future demand all jobs in Germany even today.127 « people reach this level of readiness is
for skilled labour and for skills, the Federal Ministry of Labour and Social the responsibility of the Länder and
Affairs will introduce a new monitoring of future skilled-labour needs. schools, in particular. «
The analytical results could be discussed by the Federal Government Confederation of German
Employers’ Associations (BDA)
and the social partners, for example within the framework of the Partner-
ship for Skilled Professionals. They could also feed into the work of the
relevant regional labour market stakeholders securing the supply of skilled ---» Attaining digital literacy
labour (chambers of commerce and industry, chambers of crafts, invest- should become a key and measurable
ment promotion organisations, the Federal Employment Agency), e.g. via factor for success in our education
« cooperation between regional networks for securing the supply of system, from school, to vocational
skilled labour and the Innovation Office for Skilled Labour for the Regions, training, to higher education and
which is supported by the Federal Ministry of Labour and Social Affairs. continuing vocational training. «
German Association for Information Technology,
Telecommunications and New Media (Bitkom)
Based on reliable skilled labour demand and supply forecasts, labour
market stakeholders from the political, economic and social spheres can
take a more targeted look at workers’ initial and continuing training, as
Germany’s future as a location for business depends to a crucial extent on
its workers being well-educated and skilled.
126 See Federal Ministry of Labour and Social Affairs (BMAS) 2015d. 127 Rammstedt 2013. 105
Policy Options Policy Options

---» Expanding skills, step by step, is
a vital task in human resources
development. Continuing training and
individual participation will be key for
individuals, while co-determination
will be key for all workers.
Association of Staff Councils of
the Supreme Federal Authorities
---» When it comes to flexibility in
working life, Germany is a developing
country. #arbeitenviernull
22 Apr. 2015 via Twitter
The transformation of the world of work and, more generally, the
world we live in is shaping professional biographies on all skills levels:
they are becoming more dynamic, varied and individual. Thus, in order to
avoid obstacles in people’s working and personal lives, workers must
be given active support in their change and adaptation processes. The
« main challenge for labour policy is to manage transitions between main
stages of working life, to actively support individuals as they start,
change and advance in their careers, and to prevent backward steps. ««
We need a comprehensive stragegy for long-term skills develop-
ment and continuing vocational training. The implementation of this
« strategy should be discussed at a “National Conference on Continuing
Vocational Training”, with the involvement of all relevant ministries of the
Federal Government, the Länder, the social partners and other stake-
holders. The aim should be to expand, bring together and integrate all
strands of continuing vocational education and training at federal and
Länder level, in order to establish a consistent overarching strategy.
Already today, the Federal Government is using various instruments to
support continuing vocational education and training and skills develop-
ment measures for workers and unemployed persons. Most of the training
for workers is carried out by the employment agencies and job centres in
line with the regulations on employment promotion and basic income
support. A second key pillar is implemented through the Upgrading
Training Assistance Act (Aufstiegsfortbildungsförderungsgesetz), in the form
of financial assistance for master craftsmen trainees (Meister-BAföG), for
which the Länder are responsible. Gaps between these two channels
for support must be closed, bearing in mind companies’ and employers’
responsibilities, especially as regards preventive continuing training for
their workers “below” the level of career advancement schemes.
non-linear work histories, make it possible for him or her to change
employers and sectors, and facilitate transitions between permanent
positions, self-employment and family-related career breaks.
Besides these two perspectives, the public interest must also be kept
in mind. Continuing vocational education and training is in the overall
economic interest, as better education leading to a higher growth poten-
tial means that revenues from contributions and taxes can be expected to
increase. The 2016 OECD report “Skills Matter”, which is based on
PIAAC data, shows that, going beyond productivity gains of this kind,
there is also a correlation between skills and desirable non-economic
factors, such as trust, political participation, and health. The report
concludes that investment in basic skills provides positive economic
and social returns for both individuals and society as a whole.128
However, if the transformation is to receive this kind of active support
from economic and labour market policy, a broad financing base is required
for the necessary campaign to promote skills development and continu-
ing vocational education and training. The costs relating to the provision
of advice, continuing vocational education and training, release from work
and wage replacement must therefore be shared fairly between the
state, companies and individuals. In this context, it must be clarified
what proportion should be financed via contributions and what propor-
tion via taxation.

Furthermore, it is important to keep two different perspectives in mind,

which in some respects conflict with each other. From an organisa-
tion’s perspective, continuing vocational education and training primari-
ly serves to develop, apply and update the skills required within the
organisation, to retain skilled workers, and to provide impetus for inno-
vation, productivity gains, as well as human resource and organisational
development. From the perspective of an individual’s life course, continu-
ing vocational education and training can serve to maintain and improve
his or her individual employability in a highly dynamic world of work with

106 128 Organisation for Economic Cooperation and Development (OECD) 2016. 107
Policy Options
CHALLENGES FOR THE CONTINUING TRAINING SYSTEM
Action is needed at three levels to improve the continuing vocational
education and training system.
Opportunities for access: in 2014, participation in continuing voca-
tional education and training rose to above 50 per cent for the first
time. Particular progress was made in the case of semi-skilled and
unskilled workers (up 7 percentage points compared to 2012) and indi-
viduals with low levels of educational attainment (up 4 percentage
points compared to 2012). Nonetheless, participation in continuing
vocational education and training remains socially selective in Germany.
There are relatively large disparities in the distribution of opportunities
for access: people over the age of 50, low-skilled people, people with a
migrant background , employees of small companies, and temporary
agency workers take part in continuing training much more rarely than
others. 129 This consultation process indicated that special attention
must be devoted to the fact that low-skilled workers in particular are
often involved in highly concentrated work processes with fixed cycles,
and this alone means they have little leeway to engage in continuing
training in their day-to-day work.
Information and counselling: besides the advice provided by the Federal
Employment Agency, many other institutions are active in this field, such
as chambers or adult education centres. However, there is no nationwide
network of independent, low-threshold counselling centres; nor are
there binding quality standards for the provision of counsel. The degree
of professionalisation among counsellors also varies widely.
Systematisation: the German continuing training landscape is extremely
heterogeneous and is shaped by various stakeholders, institutions and
educational traditions, which makes it tremendously difficult to coordi-
nate the planning and implementation of continuing vocational education
and training in tailored ways for specific target groups. 130 Continuing
training institutions primarily follow their own institutional mandate.
This hinders cooperation between public, in-company and external
continuing training institutions, all of which are committed to different
educational traditions. It is also important to overcome disparities in how
the different types of continuing vocational training (formal, non-formal
and informal) are treated.
129 Federal Ministry of Education and Research (BMBF) 2015; Bellmann et al. 2013.
108 130 See Baethge et al. 2013.
Policy Options
At the same time, digitalisation is also generating new or evolved
formats for continuing training, such as blended learning . These new
forms of learning allow greater flexibility in when and where continuing
training takes place, and promote learning in the workplace. Computer-
based training paves the way for workflow-integrated learning. This
cuts costs and allows for immediate application of newly acquired ---» Even now, too few people know
capabilities. Digital assistance and tutoring systems go further and how to properly use the possibilities
offer the worker individually tailored assistance and explanations with- offered by today’s technology. I hope
in the production process. New continuing training formats and systems this will change in future and that
can help to impart content in appropriate ways for specific target groups older generations will also be able to
and ages. Part-time employment must not implicate a lower level of make the most of this potential. «
participation in continuing vocational education and training. » 22 Apr. 2015 via arbeitenviernull.de
FROM UNEMPLOYMENT TO EMPLOYMENT INSURANCE
The following paragraphs map out a new policy on continuing voca-
tional education and training. The fundamental principle is for the current
unemployment insurance to become more focused on prevention, with
the ultimate aim of transforming it into an employment insurance
that actively supports transitions within people’s working lives via periods
of continuing vocational education and training. It is important to provide
preventive protection against new employment risks, to systematically
support professional development and advancement opportunities
over people’s life course, and to boost “innovative hazard”.131 The aim is
nothing less than a widening of the insurance concept, as in the modern
world of work it will be more important than ever not to define risks as
existing only at the moment when unemployment is imminent or already
a reality. Instead, preventative action should be taken over the life
course in order to safeguard and increase individual employability .
This includes a higher degree of skills development for all workers – includ-
ing preventative measures, and measures designed to support their career
pathways – but especially for those who currently participate less in
skills development.
131 Schmid 2012. 109
Policy Options
The process of further developing the unemployment insurance
into an employment insurance should take place in several stages,
with short-, medium- and long-term steps. Each stage will build on
learning experiences acquired during the preceding stage, which must
be systematically exploited.
Initial steps have already been taken during the current electoral
term. The amendment of the Upgrading Training Assistance Act
(Aufstiegsfortbildungsförderungsgesetz) strengthened the foundations
for upward occupational mobility, and the Act to Boost Unemploy-
ment Insurance Cover and Continuing Training (Arbeitslosenver-
sicherungsschutz- und Weiterbildungsstärkungsgesetz) set an initial
course. The latter Act improves access for low-skilled workers and the
long-term unemployed to continuing vocational education and training
that leads to a formal qualification. It also facilitates more opportu-
nities for continuing vocational training for employees of small and
medium-sized enterprises, i.e. those groups who tend to participate in
continuing training more rarely. Bonuses for success provide targeted
incentives and motivate people to stay the course over several years of
continuing training until they successfully attain a vocational qualifica-
tion. The Act is a response to results of the OECD’s PIAAC study, which
found that low-skilled workers, long-term unemployed and older
workers, in particular, have low levels of basic skills by international
standards.132 The Act now enables support for basic skills to be provided
where required, in order to empower adults without vocational qualifi-
cations to successfully undertake vocational training.
The next step should be to provide qualified counselling, including a
comprehensive skills assessment, to introduce more needs-assessed
support for continuing vocational training for workers, and to better
integrate the various instruments. The Federal Employment Agency has
wide-ranging experience with instruments used to analyse individuals’
potential and assess their skills, and is represented in every region of the
country. It already holds the statutory task of offering advisory services
to workers and employers. This includes both vocational guidance and
labour-market advice for employers. Both of these services should be
strengthened. The quality of advice offered should also be enhanced by
properly taking into account the individual’s formal and informal skills,
state of health and life circumstances, requirements of the labour market
and the complex continuing training landscape.
110 132 Rammstedt 2013.
Policy Options
In this context, the Federal Employment Agency recently completed
a pilot project on continuing training counselling for workers and
rates the project very positively. The levels of interest in and demand
for professional advice on continuing training are extremely high, espe-
cially amongst those who are in work. They constituted the largest
group of participants in the pilot project. Around 64 per cent of those
who received counsel had an “interrupted” work history. These individ-
uals in particular can derive long-term benefits from preventative
counsel tailored to their phase in life. What is crucial is that the coun-
selling has an impact, that it ignites people’s interest in continuing voca-
tional training, so that new opportunities for employment, develop-
ment and advancement can emerge.133
In the medium-term, the plan is to review existing means of supporting
continuing vocational training, including those aimed at improving
digital skills, and to further develop existing programmes. It must also
be examined whether new opportunities to undertake continuing voca-
tional training while receiving the transfer short-time work allowance,
which were introduced by the Act to Boost Unemployment Insurance
Cover and Continuing Training, can be extended beyond low-skilled
and older people to include other groups in the future. Specifically, a
fprospectivesystem for continuing vocational education and training
should contain the following elements:
As part of the first stage, building on the experience acquired through
the pilot project on continuing training advice, a high-quality, nation-
wide, lifelong counselling service run by the Federal Employment
Agency should bring the preventative, life-phase approach in unem-
ployment insurance to the fore and adapt the Federal Employment
Agency’s objectives in light of the transformation of work. In this context,
greater attention will need to be paid to the insured person’s medium-
to long-term employment and income prospects. This underlines the
fact that labour market policy is an investment. Early and continuous
protection against income and employment risks in transitions between
various forms of work and employment is a central pillar of a welfare
state which takes a life-phase approach, and will act as a targeted sup-
plement to the existing protection against income risks in the event of
unemployment. In the medium-term, the Federal Employment Agency
should consequently offer all interested individuals comprehensive
vocational guidance, including a comprehensive skills assessment and
133 Institute for Employment Research (IAB) 2016b; Institute for Social Research (ISG) 2016. 111
Policy Options
life-phase counselling. The advisory services for employers (especially
SMEs) could also undergo a targeted expansion in this context.
As the employment prospects of semi-skilled and unskilled workers
will deteriorate further in the labour market of the future, better support
options and incentives could conceivably help this target group to
achieve a vocational qualification later in life, on top of the existing legal
entitlement to acquire a lower secondary school certificate as adults.
For low-skilled individuals for whom acquiring a vocational qualifica-
tion is too great a hurdle, support could also be provided for skills devel-
opment measures below the level of vocational qualifications or partial
qualifications, irrespective of the size of the company. As an incentive
for businesses to take action to improve their employees’ skills against
the backdrop of the digital transformation , the possibility of partial
funding from the Federal Employment Agency for appropriate continu-
ing vocational training should be considered.
As technologies and associated fields of activity undergo significant
changes, it is difficult even for workers with vocational qualifications to
keep abreast of these changes without continuous training. This trend
is what makes lifelong learning essential, and support for continuing
vocational education and training imperative irrespective of age or
the size of the company, especially if some time has passed since indi-
viduals originally acquired their vocational qualification and last received
support for up-skilling activities.
The targeted acquisition of IT skills will become more and more
important in a wide range of sectors. Broad cooperation with diverse
providers will therefore be necessary in order to implement a nation-
wide pilot project for additional digital qualifications. There are already
initial pilot projects to develop additional qualifications of this kind,
for example within the Berlin Senate’s contribution to the Work 4.0
dialogue.134
The measures outlined above must be designed in such a way that
they can be supplemented by collective agreements. Sector-wide funds
could conceivably top up public funding, for example by compensating
for loss of earnings.
134 Berlin Senate Department for Labour, Integration and Women’s Issues (Senatsverwaltung für
112 Arbeit, Integration und Frauen Berlin) 2016.
Policy Options
In the process of implementing a comprehensive strategy for long-
term skills development and continuing training, an interministerial
approach incorporating the activities of the Länder will be pursued, and
this should be negotiated in the framework of a “National Conference
on Continuing Vocational Training”. This strategy should systematically
pull together the different strands of support, from initial to continuing
vocational training, to career advancement training. This process could
conceivably culminate in a continuing vocational education and train-
ing system with the following elements:
Within employment promotion, entitlement to support for continuing
vocational training for workers and unemployed persons and the services
provided should vary according to the type of skills development – i.e.
whether it is designed to maintain, develop or take skills to the next
level. The financial support provided should cover, in each case, the costs
of the skills development measure, and – provided that the insurance
qualifying period has been completed – the cost of living and social
security costs for the duration of the training. Funding should come from
social insurance contributions, co-payments by companies and individ-
uals, and taxation, depending on who the training’s main benefits accrue
to. In addition, supplementary regulations on employees’ release from
work for the duration of the continuing training would be necessary,
similar to those which already exist for parental leave.
The reforms proposed here would require initial means-testing to be
carried out in the framework of the continuing training advice provided by
the Federal Employment Agency. In the long term, a Personal Worker’s
Account could also be created, with a tax-funded “initial capital” which
workers could use for skills development and career breaks (→ Chapter 4.8).
113
Policy Options Policy Options

SUMMARY 4.2 WORKING TIME:

• Germany’s future as an attractive location for business depends to a
crucial extent on its workers being well-educated and skilled. In light
of the digital transformation and demographic change, policy-makers
must use a wide range of instruments to achieve the goal of full employ-
ment. An enabling macroeconomic framework, industrial and services
policies, and the funding of research and innovation are all key elements
in managing this structural change.
FLEXIBLE, BUT SELF-DETERMINED
Who sets the rhythm and pace when it comes to matters of working
time in our future world of work? A wide range of different interests
and needs are being voiced on this question as part of a lively, diverse
debate (→ Chapter 2.5): balancing companies’ and workers’ flexibility

• Policy-makers must manage the necessary changes in the education

system at all levels. Investment in education, continuing vocational edu-
cation and training, and skills development boost economic competi-
tiveness and innovation in an ageing society.
needs while at the same time maintaining health and safety at work;
boosting individual time sovereignty ; taking into consideration different
expectations and needs within a workforce; and protecting windows of
shared free time to support a lively community. The opportunities include
more options for greater self-determination in the context of work and

• The upheavals of the World of Work 4.0 make it necessary to invest

at an early stage in strengthening skills maintenance and in enhancing
advancement prospects over the whole course of people’s lives. The
Federal Employment Agency has a substantial role to play in that regard.
Support has to focus more on prevention, and must not come into play
only once there is imminent risk of losing one’s job, or be limited to
better approaches to balancing work and personal commitments. The
critical issues range from growing flexibility requirements for companies,
---» ---» I am in favour of the
principle of flexibility in terms of
involuntary part-time work, the expectation for workers to be reachable working time and location, but I think
at all times, unpaid overtime and unclaimed holiday entitlement to that issues like overtime and weekend
non-compliance with rest periods in a world where boundaries between work must then be clearly regulated. «
work and leisure become increasingly blurred. » 10 Mar. 2016 via arbeitenviernull.de

upgrading low skills.

• The Federal Ministry of Labour and Social Affairs is planning to

gradually develop the current unemployment insurance into an employ-
ment insurance to enable more preventative support for workers. An
important element is the right to independent vocational guidance and
counselling on continuing vocational education and training. Looking
to the future, one aspiration is the introduction of a legal right to continu-
ing vocational education and training. A comprehensive strategy for
continuing training should be discussed and developed at a “National
Conference on Continuing Vocational Training”, with the involvement
of all relevant ministries of the Federal Government, the Länder, the
social partners and other stakeholders.

114 115
Policy Options
---» However, [...] a modernisation
of the [...] statutory requirements is
useful and necessary in order to pave
the way for a new flexibility
compromise. For example, the
Working Time Act must take advantage
of the leeway included in the EU
Working Time Directive, such as the
possibility to diverge from the 11-hour
rest period on the basis of a collective
agreement, and to shift from a daily to
a weekly approach to working time.
Gesamtmetall – Federation of German
Employers’ Associations in the Metal and Electrical
Engineering Industries
---» The Marburg Federation
increasingly has the impression that
even mandatory statutory provisions,
such as the Working Time Act, are
regarded by a few employers as more
of a recommendation than a
legal obligation.
Marburg Federation of Doctors (MB)
116
Policy Options
ISSUES RAISED IN THE CONSULTATION PROCESS Im sum, three key aims emerged from this section of the Work 4.0 ---» There is a risk that the new
The subject of flexibility around working time and location was dialogue. Workers must be protected from overwork and a breakdown of forms of digital, round-the-clock
examined in detail as part of the Work 4.0 dialogue and via the “Digital the boundaries between work and private life . Working times must reachability will not improve the
Working World” platform within the context of the Federal Govern- be organised in such a way that workers’ health and safety are not situation for women and people
ment’s IT Summit process.135 In a separate dialogue forum on working jeopardised. More options offering working time choice should pave the with family commitments, but
time initiated by Federal Minister Andrea Nahles with the social partners, way for greater control over working time and location. New incentives instead result in increased strain. «
companies, civil society and academia, a broad consensus emerged that for flexibility arrangements negotiated by the social partners ought to United Services Trade Union (ver.di)
working time must be organised in a way which better takes into account facilitate new compromises on an innovative organisation of work
particular and differing time needs over the course of people’s lives. and create more scope for arrangements at firm-level. ---» Companies are aware that
The discussion covered both factors for success and obstacles to the workers being available around the
implementation of flexible working models in the workplace. There was Many workers express a wish for more flexible working hours and the clock is not a sustainable solution from
agreement that working time flexibility can only be successfully put in place possibility of working from home so that they can better combine work the perspective of occupational health.
if it is flanked by suitable communication, corporate and management and their personal life. It is also becoming clear, however, that trust- Action is being taken to raise aware-
cultures in companies. In this context, advisory services, networks, based working time , the growing expectation that workers should be ness about how to properly deal with
guidelines and the sharing of examples of good practice in organisa- reachable outside working hours, extra work and non-standard working modern forms of communication.
tions, and specifically SMEs, are helpful in terms of implementation.136 hours can jeopardise the work-life balance. Work from home also con- However, in a digitalised world it will
tributes to blurring the line between working hours and leisure time. be impossible to draw as clear a line
The discussion also tackled the question of what new flexibility com- A breakdown of the boundaries separating work and private life can between working hours and leisure
promises struck by employers and trade unions could look like, and have a negative impact on health. At the same time, the existing legal time as in the analogue era. «
what contribution the state can provide in this process. Employers, by framework already allows a large degree of flexibility while safeguarding Employers’ Association of Insurance Companies in
« and large, put forward the view that legislation on working time should a high level of health and safety at work (→ box). » Germany (AGV)
be relaxed with regard to provisions on maximum working time and rest
periods, in order to better meet businesses’ needs. Trade unions raised the ---» The 119th German Medical
possibility of new legal rights for workers (the right not to be reachable, Assembly 2016 expects the Federal
rights relating to the scheduling of working time, the right to home-office Ministry of Labour and Social Affairs
working) and drew attention to shortcomings in the monitoring of to ensure that the existing binding
compliance with the Working Time Act (Arbeitszeitgesetz). An intensive LEGAL REGULATIONS ON THE ORGANISATION OF statutory standards for the protection
debate also took place with respect to the option of expanding the leeway WORKING TIME of workers are not surrendered in
of social partners within the existing law, and, on this basis, setting up response to alleged greater flexibility
experimental spaces in businesses where new approaches agreed on by
German legislation is bound by the provisions of the European Working Time
Directive. The Directive stipulates that the average working time for each
requirements. «
« social partners can be tested and scientifically evaluated (→ Chapter 5). « seven- day period, including overtime, may not exceed 48 hours. In addition, German Medical Association
every worker is entitled to a minimum daily rest period of 11 consecutive hours
per 24-hour period. The German Working Time Act (Arbeitszeitgesetz) aims,
among other things, to ensure the health and safety of workers and to design
the framework for flexible working time with this in mind. The Act is therefore
based on the principle of an eight-hour day and six working days per week.
Working time on a working day can be extended to up to ten hours without any
special justification. There must be an offset, reducing the average working
time to eight hours, within six calendar months or 24 weeks. Workers are entitled
to an uninterrupted 11-hour rest period after the end of their daily working
time. In principle, Sunday is the weekly rest day.
135 Beyond the Work 4.0 dialogue, the issue was discussed by a working group of the IT Summit’s
“Digital Working World” platform, headed by the Federal Ministry of Labour and Social Affairs
and the Metalworkers’ Union (IG Metall), with a focus on issues relating to the digital world of
work. The working group’s recommendations have already been published; see Federal Ministry
of Labour and Social Affairs (BMAS) 2016b.
136 Information about best practices can be found in Federal Ministry of Labour and Social Affairs
(BMAS) 2015c. 117
Policy Options
It is possible for working time to exceed ten hours. A collective agreement
can stipulate that, for example, working time is extended to over ten hours on
working days in the case of readiness for work (e.g. security services) or on-call
service (e.g. hospitals, works fire brigades), and in special circumstances this is
also possible without this extension being offset (opt-out). There are also certain
sectors (agriculture; treatment-, long-term care and care-services; public service)
where longer working times can be permitted by means of a collective agree-
ment. In addition, the supervisory authorities can permit longer daily working
times in certain cases, for example for shift work, construction and assembly
sites, and seasonal and campaign-based work.
Derogations from the 11-hour daily rest period are also possible. For example,
in some sectors (e.g. medical, long-term care and care facilities, the hospitality
sector, transport businesses, agriculture and livestock farming) the rest period
can be reduced to ten hours, if the reduction is offset within four weeks by the
extension of another rest period to at least 12 hours. A collective agreement
can also stipulate a reduction of up to two hours in the rest period, resulting in
a nine-hour period, provided that this is required by the type of work. Moreover,
social partners can allow for corresponding regulations to be introduced in a works
agreement or an agreement between the employer and staff council.
If employees work in their leisure time (rest period), this must, in principle,
be regarded as working time within the context of the Working Time Act. The
employer is responsible for ensuring that working times exceeding eight hours
on working days are recorded. In general, the employer has an obligation to
ensure that employees comply with the statutory regulations. The Working Time
Act does not apply to senior staff, however.
In the event that the stipulated rest period, generally eleven hours, is inter-
rupted, it starts again from zero. The EU Working Time Directive offers no leeway
for a “de minimis arrangement” for short interruptions (e.g. writing an e-mail).
Occupational safety and health provisions, as laid down in the Safety and
Health at Work Act (Arbeitsschutzgesetz) and the associated ordinances, play
an important role in shaping specific working conditions. Risk assessments
must also be carried out to identify the risks of mobile working, enabling the
employer and works council to respond by adopting health and safety measures
and workplace-level regulations.
118
Policy Options
The employer is responsible for compliance with the provisions. This
remains true even if workers can largely determine their own working
time and/or place of work, or if trust-based working time has been
agreed. The supervisory authorities must monitor compliance.
As a result of digitalisation, workers are increasingly expected to be
reachable outside working hours. The usual principles of labour law
apply in this context. Workers are not obliged to be reachable by their
employer in their leisure time. The only exception is if a legally permis- ---» Companies are currently still a
sible, contractual agreement to this effect is in place. Without an long way from responding to the prob-
agreement of this kind, there is no obligation to work overtime. 137 lem, however. 81% of DFK managers
There is therefore no obvious need for legislative action. This does not believe their own company has taken
mean, however, that no action whatsoever is needed. Some companies no steps to limit constant reachability.
have now concluded widely varying, well-received agreements on non- (...) Clarity is needed regarding reach-
reachability.138 The importance of such agreements is underlined by ergo- ability outside working hours. It is very
nomic and occupational health findings, which show, for example, that rare for companies to have formal
a lack of time to rest and recover and excessively long working hours agreements on this. «
can have negative impacts on workers’ health in the long term.139 » German Confederation of Managers (DFK)
The wish for sovereignty over working time and location is growing
(→ Chapter 2.5). The Working Time Report Germany 2016 shows that
the framework in place determines whether working time flexibility has
a positive or negative impact on workers’ health and job satisfaction: if
workers can set or have a say in their working time, “flexibility can have a
positive effect on health and satisfaction and constitute a resource”. 140
To strengthen workers’ rights to a say in the matter of working time and
location, there is a general need for expanding the options available ---» Of course, Work 4.0 offers
at the workplace level and under collective agreements, and for opportunities to better balance family
broadening the circle of people who can make use of them, as well as a and work commitments. What is
corporate culture of support for the use of these options in practice. The dangerous, in my view, is a recogniz-
fact that workers have a need for flexible working models which offer them able trend towards using the new
greater options regarding the scheduling and length of their working forms of work solely to cut costs. «
time, as well as location, e.g. home office, was set out in Chapter 2.5. » 5 May 2015 via arbeitenviernull.de
137 There can be exceptions in emergency situations.
138 See, for example, Federal Ministry of Labour and Social Affairs (BMAS) 2015c.
139 See, for example, Beermann 2004; Wirtz et al. 2009; Wirtz 2009.
140 Federal Institute for Occupational Safety and Health (BAuA) 2016a, p. 133, 136. 119
Policy Options
---» To give workers scope to
enjoy greater quality of life and
working life, ver.di is also calling for a
right to telework.
United Services Trade Union (ver.di)
---» A legal entitlement for
workers to “telework” from home is
unacceptable. Not all jobs are suited to
homeworking. This is especially true in
retail (e.g. sales assistants, shelf
stackers, etc.).
German Retail Federation (HDE)
120
Works agreements and collective agreements can not only outline
specific options and set out rules for their implementation, but also articu-
late workers’ entitlements vis-à-vis their employer. However, in view of
the decline in collective bargaining coverage and the large number
of workers not covered by such approaches, e.g. because they work for
small companies, there is a question as to what extent individual enti-
tlements should be strengthened. The limits of what is feasible for a
company, in terms of organisation, costs and technical implementation,
must be recognised in this context.
One fairly far-reaching approach that would strengthen individual
entitlements in legal terms would be a Working Time Choice Act
(Wahlarbeitszeitgesetz), as proposed by the German Women Lawyers
Association (djb) in a widely discussed paper. It would give all workers –
including those in organisations where there is no co-determination –
guaranteed working time options. The core element of this approach is an
individual entitlement for each worker to change his or her contractual
working time, in terms of length and scheduling, as well as his or her
working location. The company would only be able to refuse on urgent
operational grounds. That said, this condition would be met if, for exam-
ple, a working time choice strategy had been developed in an organisa-
tion and the individual’s preferred working time was not compatible
with it. The German Women Lawyers Association’s proposal is based on the
« concept of “regulated self-regulation”, i.e. the Act would stipulate proce-
dures, time limits and participatory rights, but it would be for the employ-
er and works council to determine the specifics.141 Another option would
be a right to home office working, with free choice regarding the work-
ing location. In view of the large number of activities that remain tied to
a specific location, however, this “right” need not necessarily be an enti-
tlement which – provided that it does not conflict with operational inter-
ests – is enforceable in practice. It has not been put into practice in the
Netherlands or the United Kingdom, either, which are often cited as
examples of countries where a right of this kind has been implement-
ed. Workers in these countries are merely entitled to discuss their pref-
erence for homeworking with their employer, meaning that the instru-
« ment primarily provides a starting point for discussions at the
workplace level. « However, broader academic research is needed alongside project moni-
141 See German Women Lawyers Association (djb) 2015.
Policy Options
Finally, there was a consensus in the Work 4.0 dialogue about the
need for negotiated working time agreements and flexibility compro-
mises. In this context, employers and human resources managers, as
well as some works councils, raised the question of whether, in light of
digitalisation and workers’ changed needs, some of the existing provi-
sions of the Working Time Act ought to be relaxed. However, objec-
tions were also raised, pointing out that far-reaching demands, such as
a shift away from a maximum daily working time to a maximum weekly
working time, could lead to a reduction in time sovereignty for work-
ers and a greater risk of negative health impacts. The Working Time Act
already offers the possibility of derogating, by means of a collective
agreement, from the principle of an uninterrupted 11-hour rest period
after finishing work. The rest period can be cut to nine hours by means
of a collective agreement if necessitated by the nature of the work and
if equivalent compensatory rest periods are provided.
SHAPING THE WAY AHEAD
When it comes to protecting workers from overwork and a breakdown ---» Constant reachability means a
of the boundaries on work, and to balancing organisations’ flexibility high level of flexibility in where and when
requirements with workers’ desire for self-determination, collective work is performed. This touches on
agreements and works agreements seem the best means for tailoring co-determination in relation to work-
the implementation of statutory regulations to the situation on the ing time and the use of technology.
ground (→ box Legal Regulations). Employers and works councils and These are the areas where the most works
the social partners have already concluded pioneering agreements on agreements are being concluded. «
the organisation of working time and flexible location working which Hans Böckler Foundation
achieve this for individual sectors and organisations.»
In a dynamically changing world of work, ergonomic research is
needed into how high standards of workplace health and safety offered
by the existing legal framework can be maintained in the face of changing
parameters or new forms of employment. Today, a wealth of university
and non-university research is already being conducted into ergonomic
and occupational health questions, for example by the Federal Institute
for Occupational Safety and Health (BAuA), the research institutes of
the German Statutory Accident Insurance (DGUV) or the Institute for
Applied Occupational Ergonomics and Industrial Engineering (IfaA).
toring and evaluation, so that the health impacts of flexible employment
models can better be judged. Past research into strain and recovery
121
Policy Options
---» In the World of Work 4.0, people
are playing a new, more active role in
work in social, communicative and
emotional terms. It is important to
monitor, properly identify and conduct
research into these changes.
Institute of Industrial Engineering and Ergonom-
ics (IAW) at RWTH Aachen University
122
related to working time has focused chiefly on industrial work and less
on forms of work in the knowledge and service society, and has often
neglected to look at work-life balance as a whole. To date, too little is
known about needs, requirements and strain in relation to knowledge
workers, for example, or those facing a three-fold burden in the form
of working time, long commutes and family commitments. The Federal
Ministry of Labour and Social Affairs is seeking to ensure that the Federal
Government’s programmes give greater consideration to occupational
health research and research into prevention and health and safety in
« future. Health and safety at work must evolve, in the conditions of a
transformed world of work, into an Occupational Safety and Health 4.0
strategy (→ Chapter 4.4). « the aim of taking more of a life-phase approach to the organisation of
The initiative to insert a general right to temporary part-time work
into the Act on Part-Time and Fixed-Term Employment (Teilzeit- und
Befristungsgesetz), which is anchored in the coalition agreement, is an
important step in boosting time sovereignty and moving towards
working time choice . It enables workers to adapt their working time
to their current life phase, without falling into a “part-time trap” . 142
Limiting unwanted part-time work is also an important contribution to
making the most of the skilled labour pool and avoiding gaps in social
security, especially in old age. To make transitions between full-time and
part-time phases easier for workers, the coalition partners have commit-
ted to further developing the law on part-time work. This will ensure
that workers who choose to work part-time for a fixed period can later
return to their previous working time. To this end, an entitlement to
temporary part-time work is being created.
The right to temporary part-time work should be supplemented by
further elements, however, as part of a move towards organising working
time in a way which takes life phases and circumstances into account.
142 According to an analysis of German Socio-Economic Panel (SOEP) data currently being under-
taken for the Federal Ministry of Labour and Social Affairs, of the estimated 6 million part-time
workers (i.e. with a weekly working time below 30 hours) in 2014, almost 3 million would like to
increase their working time – by an average of 11.3 hours per week (see Tobsch/Holst, 2016).
Policy Options
• A reliable public infrastructure is necessary, especially for childcare
and long-term care. Great strides have been made more recently, particu-
larly in expanding and improving the quality of early childhood care.
However, action is still needed in relation to full-time care in schools
and long-term care.
• In recent years, the further development of parental leave and the Act
to Improve the Reconciliation between Family, Caregiving and Work
Responsibilities (Gesetz zur besseren Vereinbarkeit von Familie, Pflege
und Beruf) have already created legal entitlements to family-related
reductions in working time. These entitlements were introduced with
working time. Regarding financial support for working time reductions
in certain life phases, income reductions could conceivably be partially
offset in cases where both partners work part-time, as provided for by
the models of “family working time” or a “family benefit”.143
• Long-term accounts (referred to as “credits” (Wertguthaben) in
the relevant legislation) can be used flexibly to allow workers to take
time off work for purposes defined in legislation – such as care or
parental leave – or for purposes agreed with the employer – e.g.
continuing vocational training, sabbaticals, the transition into retire-
ment. 144 They thus offer tailored solutions to many individual time
requirements. To boost the availability of long-term accounts , incen-
tives could be established to encourage SMEs, in particular, to set up
credit schemes and make it possible for their workers to be released
from work for longer periods. 145 In the event that it proves unfeasible
to conclude inexpensive collective contracts with providers of credit
administration tools for SMEs, an alternative avenue could be for the
German Federal Pension Insurance, to which credits can already be
transferred if a worker changes employer, to administer the credits in
agreement with employers and workers. The medium-term aim could
143 See Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ) 2016;
Müller et al. 2015.
144 Credits are based on a free agreement between workers and employers. This system requires
workers to be able to currently forego portions of their pay or paid time off work so that they
can later be released from work for a longer period. Employers, for their part, must be willing
and able to administer the credits or have them administered in such a way that they are
protected in the event of insolvency, and to later release workers partially or fully from work
for a longer period. See Federal Ministry of Labour and Social Affairs (BMAS) 2015e.
145 The chemical industry is a pioneer in this area, with its collective agreement on “Working Life
and Demographic Change”. A representative TNS survey of organisations in 2010 found that
long-term accounts are set up by just two per cent of organisations in Germany (Riedmann et
al. 2011). Usage is linked in particular to the size of the organisation: at 13%, the proportion
accounted for by organisations with 500 and more workers was well above average in 2010. 123
Policy Options
---» In a project’s peak phase, a
specialist in the German organisation
may need to take part in a coordination
meeting in the United States via tele-
conferencing at short notice. If he has
already worked for 9 hours in Germany
that day, then as the law stands he would
only be allowed to attend the tele-
conference for a maximum of one hour.
There should be a provision which
allows more flexibility. « periods, the Federal Ministry of Labour and Social Affairs could only
Confederation of German
Employers’ Associations (BDA)
---» If an employee quickly answers
a few emails in the evening on the
train home after coming out of the
cinema, it must be possible for her to
start work again at 8 o’clock the next
morning. That reflects reality and the
expectations of many people, especially
young people.
Confederation of German
« breakdown of the boundaries on work , time sovereignty , negotiated
Employers’ Associations (BDA)
124
be for a long-term account to be opened for all workers at the start of
their working life. This account would offer a foundation for collective
agreements and more far-reaching reforms, which are outlined in
Chapter 4.8.
• The Flexible Pensions Act (Flexi-Rentengesetz) is intended, among
other things, to improve the possibility to supplement part-time work with
a partial pension before reaching the statutory retirement age. Older
workers will be able to organise their transition into retirement in a
flexible, self-determined way reflecting their individual life plans. This
is an important contribution to a life-phase approach underpinning
the organisation of working time.
The existing legal framework already allows for a high level of flexi-
bility (→ box: Legal Regulations). Should greater organisational leeway
prove necessary, e.g. regarding maximum daily working times and rest
envisage allowing this via negotiated flexibility compromises. These
compromises would have to fulfil certain conditions (see below). They
would have to facilitate tailored solutions without limiting workers’
time sovereignty or occupational health. The Ministry takes the view
that a general relaxation of the Working Time Act, such as a move away
from the standard of the 8-hour day in favour of a maximum weekly
working time, is incompatible with the aims of health and safety at
work and time sovereignty. «
In the medium-term, these aims (protection from overwork and a
flexibility compromises) could be enshrined in a new Working Time
Choice Act (Wahlarbeitszeitgesetz). This Act could combine more
options for workers in relation to working time and location with a
conditional possibility to derogate from the applicable provisions of
the Working Time Act (→ box: Legal Regulations). The derogation
should initially be limited to two years, during which it should be
trialled in specific experimental spaces in organisations (→ Chapter 5),
as proposed by the IT Summit’s platform on the “Digital Working
World” with regard to flexibility in working time and location. The joint
recommendation is that experimental spaces should be set up at the
workplace level to allow new working time and organisational models
Policy Options
to be developed with an open mind, and specific changes to be tested
directly in practice (→ Chapter 5). This idea should be expanded to also
allow experimental spaces which make use of a relaxation of the Working
Time Act. The evaluation of this increase in flexibility must be based on
clear criteria, above all whether the aims of health and safety at work and
time sovereignty are boosted by innovative flexibility arrangements.
This Working Time Choice Act should contain the following elements:
Workers should have the right (in line with the aim of “temporary
part-time work”), if certain conditions are met, and within certain time
limits, to choose the length of their working time. They should have a
right to discuss the scheduling of their working time, even if they do
not want to reduce their working time, and their place of work. Natu-
rally, employers should also be able to discuss the scheduling of work-
ing time and place of work with employees in the event that a worker
wishes to reduce his or her hours.
A conditional, limited derogation from the Working Time Act’s current
provisions on the maximum daily working time and rest periods should
be possible, at the worker’s or employer’s instigation, if the following
conditions are met:
• A collective agreement must permit this relaxation of the law, can limit
it to certain groups of workers, and define more specific requirements for
working time choice at the workplace level.
• A works agreement about working time choice must be in place. At a
minimum, this must include clear rules on the recording of working time
and the conducting of risk assessments.
• The employees concerned must also give their individual consent to
this relaxation of the law.
• This relaxation of the law must be tied to organisations’ willingness to
evaluate, or arrange for others to evaluate, the resulting impacts and to
make the findings available to the Federal Government. The implemen-
tation of this increase in flexibility must go hand in hand with new protec-
tive rights. For example, this could mean that the statutory maximum
ten- hour daily working time may be exceeded twice at most, provided
125
Policy Options
that this does not lead to the worker exceeding the average maximum
weekly working time of 48 hours, and that the worker is given a day off
no later than the following week. In any case, the existing reference
periods, over which an average of eight hours per working day may not
be exceeded, should be defined much more narrowly.
The outcomes of the experimental spaces should be analysed after two
years to identify, among other things, innovative compromises between
the social partners and at workplace level, and the impacts on job satis-
faction and health and safety at work. As a next step, the outcomes could
potentially be enshrined as permanent provisions in the Working Time
Choice Act and the Working Time Act.
A Working Time Choice Act could help to create incentives for the
negotiation of innovative working time arrangements which are tailored
to the conditions in the individual organisation and are based on the
general principle of “flexible, but self-determined”. This approach also
reflects the fact that the opportunity of “working time choice” cannot be
separated from an organisation’s human resources policy and leader-
ship culture. How is it ensured that (temporary) working time reduc-
tions do not result in work intensification ? How are temporary gaps
in staffing plans dealt with? Are unnecessary requirements to be present
in the workplace called into question? How can part-time work for senior
staff be supported? Are skills and information shared between staff so
they can stand in for each other? Ultimately, these questions can only
be answered at workplace level and in the dialogue between the social
partners and between employers and works councils. 146
146 The importance of workplace-level factors in the acceptance and uptake of working time options
is shown, for example, by the findings of the “Working time options over the life course” research
126 project, Klenner/Lott 2016.
Policy Options
Given the immense significance of working time legislation for health
and safety at work, it seems advisable to place a time limit on the
opening clause allowing a relaxation of the law, in the spirit of “policy
learning”. The clause would be evaluated by the Federal Institute for
Occupational Safety and Health (BAuA) regarding the issues of time
sovereignty and health and safety at work.
SUMMARY
• Digitalisation offers the opportunity for greater self-determination
in the World of Work 4.0. However, a balance must be struck between
conflicting interests and aims. Legally enshrined protection from over-
work and a breakdown of the boundaries on work is essential. At the
same time, there is a growing need for self-determination and time
sovereignty. Negotiated working time models and flexibility compro-
mises are thus becoming more and more important.
• The organisation of working time cannot be separated from human
resources strategies, performance appraisal criteria and management
cultures. New technologies can also contribute to flexibility in working
time and location. Innovative approaches in collective agreements and
at firm-level should therefore be developed and, where appropriate,
trialled in experimental spaces (→ Chapter 5).
• To make better use of the skilled labour pool and prevent workers
from becoming caught in a “part-time trap”, a general right to temporary
part-time work will be anchored in the Act on Part-Time and Fixed-
Term Employment (Teilzeit- und Befristungsgesetz), as provided for in the
coalition agreement.
• Other starting points for more of a life-phase approach to the organi-
sation of working time are wider use of long-term accounts, a further
expansion of public infrastructure in the field of childcare and long-
term care, and more self-determined transitions into retirement.
• A more far-reaching reform would be a Working Time Choice Act
(Wahlarbeitszeitgesetz), which would combine more options for workers
in relation to working time and location with a conditional possibility to
derogate from certain provisions of the Working Time Act, on the basis of
an agreement between the social partners and at firm-level. This Act
should initially be introduced for a two-year period and trialled in ex-
perimental spaces.
127
Policy Options Policy Options

4.3 THE SERVICE SECTOR: FOSTERING
GOOD WORKING CONDITIONS
---» Over 70% of employment is
now in the service sector. The focus
must be on growing, forward-looking
sectors and, accordingly, it is important
ISSUES RAISED IN THE CONSULTATION PROCESS
The evolution of digital platforms was an issue which permeated the ---» The European Commission’s
entire consultation process, even beyond the concrete effects on the plan to boost the sharing economy
world of work. It became clear that platforms can primarily offer visible should be opposed, because Uber & co.
benefits for customers, such as greater efficiency, lower prices, addi- are attacking good standards in the
Although the German debate on digitalisation is being shaped in par- tional choice and easier access. However, criticism was voiced of the field of passenger transport, for
ticular by the vision of “Industry 4.0” , the transformation is affecting trend towards monopolies, which can also have the opposite effect. example, resulting in a deterioration
all sectors, albeit at different paces and with varying degrees of intensity. It was also argued that platforms have a tendency to foster price wars, in service. «
Many sectors, such as the media, retail, finance, the trade sector or as information about quality was often overshadowed by price tags in via arbeitenviernull.de

not to develop the strategies for
“Work 4.0” by taking industry as the
starting point. To achieve “good work”
for as many workers as possible amidst
the digital revolution, it is essential to
place the transformation processes in
the social service sectors, in particular,
centre stage.
United Services Trade Union (ver.di)
logistics, have long been confronted by digitalisation, and the effects online comparisons. »
are already being clearly felt. «
In addition, concerns were voiced that “on-demand services” are pri- ---» The temporary agency workers
A strong and competitive manufacturing sector will remain the major marily resulting in lower-paid employment with little social protection. and contract workers on the periphery
foundation for innovation, productivity and skilled employment in future. As a consequence, the labour market could split further into core and of the core workforce could be joined
At the same time, services relating to industrial production and products peripheral workforces or high-paid specialists and low-paid crowd- by a swarm of new service providers in
are emerging in new value networks. The “Labour Market 2030” employ- workers . The decline in collective bargaining coverage is another new forms of work based on solo self-
« ment forecast is predicting growth mainly in the area of business-related relevant factor in this context. There is a “customer dilemma” here: many employment and digital “day labourer”
services and the social services sector (→ Chapter 2.1). « consumers want to enjoy the benefits of the services offered via digital work. «
intermediaries without necessarily fuelling a deterioration in working Bremen Chamber of Labour

---» The care work sector will have
to expand more rapidly in future in
order to relieve the pressure on working
women, in particular, who often take
on the greatest burdens in terms of
family care work and housework, e.g.
childcare, long-term care and support
for older family members, and other
key elements of family work.
Association of German Cities
Particularly against the background of rising female employment and
societal change, the care sector offers significant employment oppor-
tunities. Demand will continue to rise, especially in the fields of child-
care, long-term care and household-related services. A good and afforda-
ble supply of care services is therefore also an important contribution to
securing the skilled labour base, as it relieves workers of the burden of
carrying out the tasks in question. As there is limited potential for ratio-
nalisation in these occupations, they constitute an important field of
« employment.147
However, even services which are at relatively low risk of automation
are affected by digitalisation: platforms are already acting as interme-
diaries for many services today. This trend can be expected to continue.
conditions. Without sufficient information, however, they cannot make
an informed choice. »
At times, the trends of sharing, crowdfunding and collaborative com-
mons were described – sometimes with reference to more visionary
academic contributions from the international debate148 – as elements
of an economic approach which is regarded as an alternative to mono-
poly platforms (→ Chapter 2.2).
There is a broad consensus that potential for additional employ- ---» Particularly in the service sector,
ment exists, particularly in childcare, health, long-term care and social working conditions sometimes exist
occupations, as mentioned above. However, the working conditions are which are far removed from “good work”.
regarded as problematic, in particular the level of pay, which often [...] Steps to improve the conditions of
does not allow for any private provision against social risks. Political employment in the service sector will
action is deemed necessary both to improve pay structures and in therefore also be necessary. «
terms of the value which society places on care work. Thus the visible Social Sciences Institute of the
Evangelical Church in Germany
employment potential in these areas is in itself not a guarantee of
quality jobs work. Instead, long-term financing of adequate wages will
»
be necessary to create a personal service sector which is fit for the future.

128 147 Hipp/Kelle 2015. 148 See Rifkin 2014. 129

Policy Options
---» To secure a qualified skilled
labour supply in the health sector,
innovative incentives are needed
via new pay structures.
Association of German Cities
---» Ver.di is pressing for service
activities to be upgraded, as this is a
key building block for the future of
work and social justice. [...]
Political messages are needed which
place as high a value on work with
people as work with machines.
United Services Trade Union (ver.di)
---» Even more robots ought to be
“employed”, so that people can do
more skilled work and receive better
support, especially in physically
demanding work (e.g. in the
long-term care sector).
22 Apr. 2015 via arbeitenviernull.de
---» “Good services” can not only
specifically enhance working condi-
tions, but also improve living condi-
tions and promote public welfare.
Productivity gains should be redirected
to areas of societal need, in particular...
In the medium term, the focus should
be on promoting and supporting inno-
vations which generate jobs
United Services Trade Union (ver.di)
130
The market can undoubtedly bring about a certain amount of pro-
gress in this area. Trends in productivity and in supply and demand play
a crucial role in determining wage trends, as do collective bargaining
« coverage and society’s willingness to facilitate good wages for skilled
services. While digitalisation itself can, via productivity gains, lead to
rising wages in the services sector, these possibilities are relatively
limited in the field of labour-intensive personal services. New business
models and an optimisation of work processes can contribute to an
upgrading of occupations here, and in this context, public co-financing
of socially necessary services may be a sensible approach. It leads to
better wages and opens up new employment opportunities. It is also,
in principle, a legitimate and tried-and-tested approach for public
« policy to specifically develop and support areas or sectors where there
is an overarching public interest and where market mechanisms are not
functioning properly. «
SHAPING THE WAY AHEAD
The design of service markets and the development of business and
organisational models in the service sector only partially fall within
policy-makers’ remit, and the Federal Ministry of Labour and Social
« Affairs, for its part, has limited power to shape parameters in this area.
Nonetheless, several general principles can be identified from the
dialogue. Firstly, digitalisation can boost productivity in the service
sector and thus facilitate higher incomes. Innovations of this kind
should be supported. Secondly, thought should be given to how busi-
ness models could be designed that would boost SMEs’ competitiveness
compared to monopoly platforms and at the same time take the social
market economy approach and pursue the vision of quality jobs in the
digital age. Thirdly, working conditions should be made more attractive,
especially in the care economy and socially necessary services, while
giving all individuals access to these services. Reducing undeclared work
in favour of jobs with compulsory social insurance coverage remains an
important goal in this context. Fourthly, and most importantly, it is vital
to increase collective bargaining coverage in the service sector and
« especially in the care sector and, looking to the future, to achieve a
generally binding collective agreement for the social sector. «
Policy Options
In response to the “customer dilemma”, the dialogue between busi- ---» In principle, employers in the
nesses, consumer institutions, trade unions and policy-makers should metal and electrical engineering indus-
be continued. 149 In the jungle of opaque value creation processes and tries are committed to transparency,
complex terms and conditions, customers should be able to find out sustainability and responsible econom-
what working conditions apply to services provided via digital interme- ic activity, but oppose any trend to-
diaries. Transparency should not apply solely to prices and diversity of wards monitoring of companies by
supply. Platforms could provide reliable information about quality- consumers (outside the existing legal
related issues, such as vocational training and other qualifications, framework), let alone the publication of
specialist knowledge, experience, etc. and, not least, offer transparent sensitive corporate data. «
information about working conditions and social protection. Only then Gesamtmetall – Federation of German Employers’
Associations in the Metal and Electrical Engineer-
can consumers properly weigh up the prices and services offered and
ing Industries
help to promote good working conditions by taking informed decisions.
More debate is still needed on whether certifications or quality labels,
at least on a voluntary basis, would be a possible answer, or whether
other solutions entirely are conceivable. »
The question of whether digital platforms require a new regulatory
framework has been raised by the Federal Ministry for Economic Affairs
and Energy in a Green Paper of its own. 150 In order to maintain an
SME structure in service markets and the trade sector and thus to safe-
guard value creation, investment and regular taxation in Germany, one
option in certain sectors would be for companies working together on
joint platforms to reach out to customers. Likewise, companies and
self-employed workers could maintain a joint digital platform, which
would have the competitive advantage of being especially attractive for
potential customers by offering quality jobs and fair pay. Various models
can be envisaged in this context.
One option is the old idea of a cooperative, which can take on new
significance in the context of digitalisation.151 While many of the new
digital platforms are financed via venture capital and face corresponding
return expectations, a cooperative would be something like SME
“crowdfunding”. Cooperatives, whether as communities with shared
149 As part of the Work 4.0 dialogue, the Federal Ministry of Labour and Social Affairs and the Fed-
eral Ministry of Justice and Consumer Protection held a discussion with stakeholders at a joint
event on 20 September 2016 about the conditions in which socially just and consumer-friendly
standards can be achieved in the field of physical services provided via digital intermediaries:
https://www.bmas.de/DE/Presse/Meldungen/2016/symposium-dienstleistungsplattformen-
internet.html
150 Federal Ministry for Economic Affairs and Energy (BMWi) 2016.
151 Theurl 2015; Scholz 2016.
131
Policy Options
---» Financial support for house-
hold-related services is one way of re-
ducing the burden on families.
However, expanding these activities
must not lead to the consolidation of a
precarious service sector, but instead
reflect the principles of “good work”.
Forum for Progressive Family Policy (ZFF)
132
values or “merely” shared economic interests, lend themselves as an
alternative organisational model for centralised platforms, including in
the sharing economy . On this question, too, the Federal Government
must intensify its dialogue with businesses and society.
One concrete option – which also reflects the aim of a digital public
administration responsive to public needs – exists in the field of house-
hold-related services. In Germany, much of the strong and growing
demand for household-related services is met outside the legal frame-
work. It is estimated that in 2015 around 80 per cent of domestic work-
ers were not in a legal employment relationship.152
Targeted co-financing can make household-related services an
accepted field of employment for low-skilled people, with compulsory
social insurance coverage. These services are funded by the state in
many countries for this reason. In addition, they can make a major contri-
bution to allowing a better balance between family and work commit-
ments. This could also allow previously unpaid work, often performed
«
by women, to move into the sphere of paid work. 153 In view of demo-
graphic trends and the possibility that digitalisation may result in low-
skilled jobs disappearing in some sectors, the labour-market, social and
finance policy arguments for funding household-related services must
be reassessed. « service markets.
The core of this proposal is that existing forms of support should be
readjusted and targeted assistance provided for households in fulfilling
their obligations as employers. To this end, the existing tax deduction
options could be converted into a household services account, which
the German office managing “mini-jobs” could administer, for example,
alongside the existing “household jobs exchange”. Alternatively, private
service providers could be tasked with this role. Low-income house-
holds in need of support would also benefit more from the establish-
ment of a credit system than they currently do from applying for tax
152 Enste 2016.
153 To date, the rise in female employment has not been accompanied by a redistribution of unpaid
care work between men and women. Although the female employment rate has risen to
over 73 per cent, women continue to perform a much higher share of unpaid work than men:
according to the Federal Statistical Office’s 2012/2013 time use survey, two-thirds of the
work performed by women is unpaid, compared to just under half for men.
Policy Options
deductions when filing a tax return. The credit in the account could be
used to pay social insurance contributions, or flat-rate contributions in
the case of mini-jobs. When purchasing a service via an agency, a share
of the costs could be paid using the account. If a household employs
people in jobs with compulsory social insurance coverage, the service
provider could, in line with the aim of a modern, digital administration,
organise the household’s notification obligations and the payment of
social insurance contributions and potentially also income tax. Funding
would also be provided for the employment of solo self-employed
individuals , provided that they are covered by social insurance. Social
insurance contributions would then be collected via the service provider.
This also applies to platforms which act as intermediaries for self-em-
ployed work. It would be sensible to begin with a pilot scheme to trial
this model in a major city or region, to determine its effects on the
labour market and fiscal impacts.
SUMMARY
• Digitalisation is having a special impact on service industries. Not
only is it affecting the activities themselves, it is increasingly also lead-
ing to them being provided via platforms as intermediaries. A critical
discussion is taking place about the trend towards monopolies in these
• For customers, platforms can have significant benefits. At the same
time, there is a risk that they can lead to a deterioration in working
conditions. This “customer dilemma” should be countered by measures
including an agreement on social standards between businesses, con-
sumer institutions, trade unions and policy-makers.
• In order to maintain the SME structure in service markets, companies
could work together to build joint platforms to reach out to customers.
Cooperatives could offer a suitable organisational form for this.
133
Policy Options Policy Options

• Collective bargaining coverage should be increased in the service and 4.4 HEALTH AT WORK: APPROACHES FOR
care sector and, looking to the future, should lead to a generally binding
collective agreement for the social sector. OCCUPATIONAL SAFETY AND HEALTH 4.0
• The importance of the care sector will continue to grow. Attractive
working conditions are particularly necessary in this area. Public co - Germany has a long tradition of humanising the world of work. An ---» I believe it is important to
financing is useful in the case of socially necessary services delivered by activity is regarded as “humane” if it does not have a negative impact reduce psychological strain and
the private sector. For household-related services, a new model of a on workers’ health, wellbeing, and performance capabilities. Both the cushion the effects of time pressure.
household services account and digital administration would be a suit- Occupational Safety Act (Arbeitssicherheitsgesetz) and the Safety and To achieve this, however, one thing
able approach to support households. Health at Work Act (Arbeitsschutzgesetz) enshrine the principle that first needs to change: our philosophy
work should be designed in accordance with human needs: effective of life. «
health and safety standards at work are key to preventing negative 21 Apr. 2015 via arbeitenviernull.de

health impacts. Yet health is not merely the absence of disease. 154
Thus, a job can only be regarded as humane if it reflects the worker’s
skills, allows individual potential to be realised and individual compe-
tencies to be developed155, and in this way contributes to the worker’s
physical, mental and social wellbeing. »
ISSUES RAISED IN THE CONSULTATION PROCESS
The consultation process showed, on the one hand, that the digital
and technological transformation may not only help foster health and
safety in the workplace, but also help to create more humane working
environments in the broader sense. “Gute Arbeit”, approaching the
ideal of a humane activity, could be available to more people than in
the past. Adaptive assistance systems and robots are today already
taking on physically demanding, hazardous and monotonous tasks.
Workers could thus have more time in future for the creative, manage- ---» In the case of solo self-employ-
rial and interactive aspects of their work. ment – as well as telework and mobile
working – greater flexibility initially
On the other hand, the dialogue also made clear that demands facing results in more working time sover-
workers in the digital transformation are changing rapidly, as the number eignty. However, the positive effects
of activities dominated by cognitive, information-related and emotional associated with this can often go hand
factors is steadily rising. In many occupations, a shift is taking place in hand with work intensification or
from physical to primarily cognitive tasks. Then there are overarching a breakdown of the boundaries on work,
trends such as the breakdown of the boundaries between private and with corresponding negative impacts
working life, work intensification, greater flexibility and mobility . All on the worker’s safety and health
of these were discussed not only in terms of the opportunities they offer, (physical and mental health risks,
but also in terms of the risks they pose. For, although the causes are accidents, incapacity for work). «
primarily rooted in a combination of personal resources and changing German Statutory Accident Insurance (DGUV)

154 World Health Organization (WHO) 1946.

134 155 German Ergonomics Society (GfA) 1999. 135
Policy Options
---» Regarding the issues relating to
“work intensification”, the employer
must not be held solely and prema-
turely responsible. It is impossible to
generalise about whether the percep-
tion of work intensification is due to
external influences or certain types of
behaviour on the part of the worker. « days.157 This rise is due to both an actual increasing prevalence of men-
Association of German Chambers of Commerce
and Industry (DIHK)
---» In the world of Work 4.0, there
will continue to be risks caused by
both mental (e.g. monotony, overwork,
boundaries) and physical factors
(e.g. noise, hazardous chemical and
biological substances, physical
demands and physical inactivity). (...)
In the context of an ageing workforce
and new forms of work, these risks are
leading to major challenges for preven-
tion and occupational health. « contribution to this, as they provide qualified advice on the interactions
German Society for Occupational and Environ-
mental Medicine (DGAUM)
---» Occupational safety and health
legislation alone will therefore not be
enough in light of the transformation
of value creation. « advising workers about individual health risks in their work. Alongside
German Statutory Accident Insurance (DGUV)
136
working conditions, it is clear that there has been a sharp rise in mental
illness in recent years, in parallel with the progressive transformation
of the world of work.156 Mental illness is one of the main causes of reduc-
tion in earning capacity and early retirement. Since 2004, the number of
days lost due to mental illness has increased by almost 72 per cent, and
in 2015 periods of absence due to mental illness were, at an average of
25.6 days, more than twice as long as the general average of 11.6
tal illnesses, improvements in diagnosis, and a decline in the social
stigma attached to it. 158 The costs borne by individual social insurance
agencies, the state and also employers are immense. « policy is pursued at all levels of the occupational health system, and
The present challenge is to adapt health and safety at work and occu-
pational health care in light of not only the digital transformation, but
also demographic change, the effects of which are increasingly being
felt. To this end, it will be necessary to ensure that psychological strain
is a greater focus in the work of all occupational safety and health
stakeholders. Building on the “Vision Zero Strategy” to prevent fatal
and serious work-related accidents and diseases, the traditional instru-
ments of health and safety at work should also be developed further to
create an encompassing approach for “Occupational Safety and Health 4.0”
(→ Chapter 4.2). Company doctors are already making an important
between work and health and on integrated occupational health strategies.
To improve the available human resources, the Federal Ministry of Labour
and Social Affairs supports the Action to promote young professionals in
the field of occupational health (Aktionsbündnis Arbeitsmedizin).
156 Böhm 2016.
157 Badura et al. 2016.
158 Federal Institute for Occupational Safety and Health (BAuA) 2015.
Policy Options
Against this background, some responses to the Green Paper recommend ---» At present, there is a shortage
that occupational health research should be boosted significantly.» of research on the psycho-social trends
in the digitalisation of the world of
SHAPING THE WAY AHEAD work and the impacts in terms of occu-
The Joint German Health and Safety Initiative (Gemeinsame Deutsche pational health. More needs to be known
Arbeitsschutzstrategie, GDA) is the nationwide platform for health and about the causes of psychological strain
safety at work, supported by the Federal State, the Länder and occupa- induced by the digitalisation of the
tional accident insurance funds. It is the foundation for transforming the working world, and its effects on physi-
occupational health and safety system along the lines sketched above. cal and mental health. It would be
The stakeholders in the GDA seek to ensure that a long-term prevention useful to have a digital platform setting
out the interim and final results of
practical improvements are achieved for workers in terms of health and research projects on the digitalisation
safety at work. In this context, they coordinate with the social partners of the working world in a systematic
and other stakeholders, such as the health insurance funds. Occupa- and comprehensible form. «
tional Safety and Health 4.0 is already on the agenda: one GDA aim is to Conference of the Labour and
Social Affairs Ministers, Work 4.0 Working Group
protect and improve health in relation to work-related psychological
strain. The Work 4.0 dialogue is taking up this aim. However, in contrast
to the case of hazardous substances, for example, the approach cannot ---» Reducing work-related health
be to minimise psychological stress across the board. In the past, many risks caused by psychological strain is
humanisation projects have actually increased the demands on workers undoubtedly a challenge in the field of
by enriching and expanding the content of their work in order to make it health and safety at work; however, this
more interesting, varied and thus more humane. In the organisation of can only be addressed effectively if the
work, it is essential to avoid forms of working time, workflow, commu- facts are known. When it comes to
nication and collaboration which place undue psychological strains on health and safety at work, a clear
workers. In view of the increasing flexibility regarding working time distinction must be made between
and location, however, greater demands will also be placed on workers’ work-related and personal causes, and
« individual responsibility and health literacy. in practice this is immensely difficult.
(...) The current state of knowledge
Occupational health care is a good instrument for educating and concerning cause-and-effect relation-
ships is largely inadequate, which poses
the need to enhance health literacy, it is important, above all, to retain a significant problem, not least for the
the priority of circumstantial prevention as a fundamental principle in development of procedures to assess
occupational safety and health in the digitalised world of work. psychological strain; this is a problem
for which it has proved impossible to find
a satisfactory solution for decades. «
Gesamtmetall – Federation of German
Employers’ Associations in the Metal and
Electrical Engineering Industries
137
Policy Options
These issues must in future be placed at the heart of health and safety
at work. A key element of the GDA’s programme on work-related psycho-
logical strain is therefore to inform and upskill in-company and external
health and safety stakeholders in this area. The Federal Ministry of Labour
and Social Affairs will seek to ensure that the GDA’s programme to
protect and improve health with regard to work-related psychological
strain is continued beyond 2018.
Furthermore, the Ministry is helping to lay the scientific basis for the
occupational safety and health system of the future. For example, the
Federal Institute for Occupational Safety and Health carried out a wide-
ranging research project studying and assessing the current state of
knowledge (including measurement standards and practical feasibility)
on factors with harmful or beneficial impacts on health.159 Initial results
suggest that the following four areas have a major influence on mental
health in the world of work: the nature and organisation of activities;
the duration, scheduling and distribution of working time; management
and organisational structures, and technical factors. In addition, the
project’s results show that it is essential to look both at factors with a
beneficial influence on health (resources) and factors with a harmful
influence on health (stressors). Greater attention should also be paid
to the interactive work required by many occupations and the associated
emotional strain, and the dynamics between work and other spheres of
life. Phases of mental stress or illness experienced by individual workers
should not be pathologised. In light of these findings, a modern system of
Occupational Safety and Health 4.0 should include the following elements:
• An adaptation of safety strategies in the light of new technologies,
e.g. human-robot collaboration.
• Advice and support for senior staff and workers in relation to work
from flexible locations.
• Fostering a sustainable culture of prevention in organisations, in
close cooperation with the relevant departments.
• Further training and empowerment of workers to ensure they are
better prepared to take on an increasing personal responsibility for
their own health.
138 159 Federal Institute for Occupational Safety and Health (BAuA) 2016b.
Policy Options
• Developing executives’ skills with regard to changing working
conditions.
• Preparing supervisors to deal with a wider spectrum of issues (e.g. the
growing importance of psychological strain) and placing clearer
emphasis on advice and support rather than checks and sanctions.
In addition to establishing a modern occupational safety and health
system, the Federal Government should investigate digitalisation’s
impacts on working conditions in experimental spaces (→ Chapter 5)
with a view to developing innovative approaches. The aim – continuing
in the tradition of earlier such programmes – should be an interminis-
terial innovation, research and transfer strategy for labour research
(→ Chapter 5).
The Federal Ministry of Labour and Social Affairs will continue, with
the “Mental Health in the Working World” (psyGA) project which has
been supported as part of the New Quality of Work Initiative (INQA)
since 2009, to ensure the reliable transfer of state-of-the-art knowledge
about mental health into concrete practice in organisations. Workers’
knowledge, literacy and perspectives are becoming more and more impor-
tant in ensuring that organisations are fit for the future. INQA will
therefore focus even more on providing professional support for partic-
ipation-oriented change processes. This includes the “Sustainable Corpo-
rate Culture” audit (Audit „Zukunftsfähige Unternehmenskultur“) and
the SME advisory programme “Corporate Value: People" (unterneh-
mensWert:Mensch, uWM). The audit is the first service of its kind which
is supported by employers’ associations, trade unions, chambers, the
Federal Government, the Federal Employment Agency and the Länder. It
enables companies and administrations to obtain a holistic picture of where
they stand with respect to upcoming challenges. The uWM programme,
co-financed by the European Social Fund, specifically supports SMEs
by providing professional advice in developing a modern, staff-oriented
human resources strategy.
139
Policy Options
If digital and demographic change is viewed from the perspective of
securing the labour supply, clear incentives emerge for companies to
invest in good working conditions, which enable their employees to
participate in working life for longer, in good health, with skills and
strong motivation. This is because, firstly, the demand for qualified and
flexible skilled workers will rise due to digitalisation and technological
progress. Secondly, much of the pool of skilled labour will be exhausted
in the near future as a result of demographic change. Traditional levers,
such as targeted investment in the education system, a modern approach
to the recruitment of young people, and the mobilisation of groups
who have previously been at a disadvantage in the labour market, are
important but no longer sufficient to meet future demand for skilled
labour. Nor will skilled migration be able to fully compensate for the
shortage.160 Consequently, maintaining individual employability will
be of immense importance.
Although some companies are setting a good example, on the whole
not enough is being done so far to address the challenges of a changing
working society. For example, while there has been a decline in acci-
dents at work over the past two decades, the number of days lost due to
mental illness has increased steadily. Moreover, the average length of
absence is much longer than for physical illnesses and has undergone a
marked increase in recent years. 161
It is unclear whether the necessary investment in good working con-
ditions at the workplace level is being held back by a lack of informa-
tion, a deliberate or unconscious externalisation of responsibility, or the
cost of relevant measures. What is clear is that companies with working
conditions which are particularly beneficial for health and learning
are not only investing in their own competitiveness, but are also reducing
the burden on the social security systems and thus, ultimately, other
employers as well.162
160 Vogler-Ludwig et al. 2016.
161 Badura et al. 2016.
140 162 Eichhorst 2016.
Policy Options
One possible approach to account for these external effects would be to
develop incentives for organisations which invest in maintaining employ-
ability and good health. Well-designed economic incentive structures
can be effective catalysts for necessary changes at workplace level
beyond statutory minimum standards.163
To accelerate the introduction of technologies and assistance
systems with a positive health impact, a support programme for
SMEs is conceivable.
SUMMARY
• Health and safety at work must be adapted in light of not only the
digital transformation, but also demographic change, the effects of
which are increasingly being felt. To this end, it will be necessary to focus
more on the psychological strain of work, alongside its physical demands.
• The Federal Ministry of Labour and Social Affairs will therefore seek
to further develop health and safety instruments into an “Occupational
Safety and Health 4.0” strategy. As part of this, the Joint German Health
and Safety Initiative’s programme to protect and improve health in rela-
tion to work-related psychological strain will be extended beyond 2018.
• In addition, the Federal Ministry of Labour and Social Affairs will
contribute to the development of an interministerial Work 4.0 innovation,
research and transfer strategy. The New Quality of Work Initiative INQA,
in particular, will continue to ensure in future that knowledge and inno-
vations are properly transferred and implemented in practice.
163 Elser et al. 2010. 141
Policy Options
---» Progressive digitalisation
means employers are able, in principle,
to monitor their employees in almost
all respects. One example of this is the
ability to analyse log-in data: who
worked on a patient’s file when, at which
workstation, for how long, and what
was the content? Furthermore, the
Marburg Federation is observing that
uniforms are increasingly being
equipped with RFID technology. This
makes it relatively simple to generate a
detailed profile of workers’ movements.
Marburg Federation of Doctors (MB)
---» We need a system of employee
data protection which reflects the
digitalised world of work. For example,
solutions must be offered for a work-
able approach to data protection
allowing a distinction between work
activities and personal lives.
Daimler AG
---» Forward-looking regulations to
protect employees’ data must
guarantee workers’ privacy rights,
but should also take into
consideration employers’ interests
in the use of data.
Conference of the Labour and
Social Affairs Ministers of the Länder
142
4.5 EMPLOYEE
DATA PROTECTION:
SAFEGUARDING
HIGH STANDARDS
More and more people are using digital devices and applications in
their work, generating growing quantities of personal data, which can be
collected, stored, and analysed. The mixed implications of Big Data
(→ Chapter 2.3) also apply with regard to employee data. On the one
hand, it promotes the optimisation of workflows, business efficiency
« gains, the monitoring of performance, quality and success in the work-
place, occupational safety and health, and continuing vocational educa-
tion and training. On the other hand, it also paves the way for a compre-
hensive, permanent monitoring incompatible with privacy rights. This is
also one of the fundamental legal conflicts surrounding employee data
protection: the need to strike a balance between companies’ legitimate
interests in relation to the protection of their property, the monitoring
of employees’ performance, and adherence to compliance rules164, on the
one hand; and the rights of workers to informational privacy on the
« other, which was formulated by the Federal Constitutional Court in 1983
«
as a general principle for data protection. 165
The protection of employees’ data is particularly sensitive because
their dependence on their employers places them in a vulnerable posi-
tion. Factors such as the requirement to obtain consent from individuals
for the processing of their data in the work context, and the structural
imbalance in employment relationships, must therefore be taken into
« consideration. For this reason, companies’ scope for action is limited by
the collective right to co-determination in relation to technical devices
(Section 87 (1) no. 6 of the Works Constitution Act (Betriebsverfassungs-
gesetz)). This provision is becoming increasingly important, as most
activities are now performed using digital devices which are covered by
this provision. 166
164 Thüsing 2014.
165 Papier 2012; Simitis 2016.
166 Wedde 2016.
Policy Options
EMPLOYEE DATA PROTECTION – FROM THE FEDERAL
DATA PROTECTION ACT TO THE EUROPEAN GENERAL
DATA PROTECTION REGULATION
An intensive debate about specific rules for the protection of employee data
has been taking place in Germany since the entry into force of the Federal Data
Protection Act (Bundesdatenschutzgesetz) in 1977. One result of this debate was
Section 32, with which the 2005 Grand Coalition anchored employee data protec-
tion in the Act for the first time. The fact that, so far, no more far-reaching, differ-
entiated regulations on employee data protection have been adopted which would
have settled the debate is not due to a lack of political will (several governments
have published drafts); rather, it has proved impossible so far to find a viable
compromise which would have articulated and balanced the various interests ---» Data protection is an important
well enough to command the necessary majority support. The rapid pace of
technological progress has contributed to the difficulty by creating more and
issue in the era of digitalisation! «
more new needs for regulation, as has the complexity of the subject. » 10 Mar. 2016 via arbeitenviernull.de
This does not mean, however, that employee data is poorly protected in Ger-
many: the general principles enshrined in German data protection legislation, such
as purpose limitation , data minimisation , the transparency requirement ,
necessity and proportionality , naturally also apply to the handling of employee
---» Awareness of data protection
data. But in some respects there is a lack of legal certainty and clarity: the legal will need to be boosted in the digital
framework for employee data protection is provided by the interaction of many world, both among the public as a whole
provisions and principles at European, national and international level, and it and among employers and workers. One
has been developed further over the decades by court decisions which are “in
helpful factor in this is more detailed
some cases difficult for the workers concerned to understand”.167 In addition, from
May 2018 a new, single legal framework for data protection will apply in all EU regulations on employee data protection
Member States in the form of the European General Data Protection Regulation . which offer legal certainty and an
This has many advantages (→ Chapter 2.3), but the necessary implementing appropriate balance of interests. «
legislation will initially complicate the legal situation at national level further. » German Bishops’ Office
The European General Data Protection Regulation contains an “opening
clause” in relation to employee data protection which empowers Member
States to issue more specific rules on data processing in the employment con-
text.168 The German Federal Government was among those who pressed for the
inclusion of this opening clause.
To adapt German legislation, a “Data Protection Adaptation and Implemen-
tation Act EU” (Datenschutz-Anpassungs- und Umsetzungsgesetz EU) is cur-
rently being drafted. The Federal Data Protection Act in its current form is to be
replaced, but the relevant section for employee data protection, Section 32, which
167 German Bundestag, Printed Paper 17/4230.
168 Däubler et al. 2016. 143
Policy Options
---» Companies require legal
certainty, on the one hand, and flexi-
bility for their day-to-day operations,
on the other. It is therefore essential to
maintain the scope for practical
solutions to be created via works agree-
ments or via consent from employees
for their data to be processed. In addi-
tion, the international transfer of data
needs to be improved, in particular by
making it easier to transfer data
between associated companies.
Bavarian Industry Association (VBW)
144
Policy Options
regulates “Data collection, processing and use for employment-related purposes”, behaviour, from work at a desktop computer to the use of company or ---» The level of monitoring in many
is to be retained. The tried-and-tested approach of regulating data protection at official smartphones, data glasses or data gloves; 170 thirdly, applications workplaces is frightening for those
the workplace level in works agreements will also remain possible. This initially
capable of analysing workers’ personalities in order to evaluate them or affected. The line between controlling
creates certainty, because although the general legal framework is changing, the
specific standards of protection for employees are not. However, a detailed ex- predict their future behaviour, for example speech analytics or analysis and an inappropriate level of moni-
amination is still needed into whether the new general principles in the EU of corporate social networks.171 » toring is blurring. The Women’s Rep-
General Data Protection Regulation will have an impact on employee data pro- resentation in the Social Insurance
tection in Germany. In several areas, the Regulation will raise data protection
Existing law already sets a series of standards against which the legal- System Trade Union is greatly
standards even without further implementation in Germany, for example as
regards rights of the data subjects. « ity of such applications must be measured. The collection, processing, and concerned by this development. «
use of data for employment-related purposes is permitted if it is neces- Social Insurance System Trade Union –
Designing a system of employee data protection that accounts for ongoing Women’s Representation
sary for hiring decisions or, after hiring, for carrying out or terminating
digitalisation processes and goes beyond the existing Section 32 of the Federal
the employment contract. In other words, the handling of employees’
Data Protection Act, will require detailed knowledge of the new technological
« possibilities in their implications for data protection. personal data is limited to a specific, predetermined purpose, and must ---» Employee data protection must
be both appropriate and necessary for this purpose. Assessing appro- be rigorously reviewed and enhanced.
priateness includes a check on whether a certain approach is also pro- Access rights, the right for data collection
portionate, and both the principles of data reduction and data minimi- to be voluntary, the right to anonymi-
Pressure for regulations on employee data protection stems from three sation must be taken into account. sation and all protective mechanisms
main trends: firstly, the move away from clear geographical locations under data protection legislation must
for data storage and processing and the shift from static to dynamic Court decisions have specified how these standards are to be inter- be clearly regulated and guaranteed so
software development, which makes it more difficult to identify respon- preted in some circumstances, but not others. Certain principles, on as to leave no scope for monitoring of
sible parties; 169 secondly, applications capable of fully documenting, which there is a broad consensus, also emerge in the relevant literature. workers’ behaviour and performance. «
evaluating, analysing and monitoring workers’ performance and work The guiding idea is that, in all cases involving checks and monitoring, a Rail and Transport Union (EVG)
careful distinction must be made between permissible purposes on the one
hand, such as workflow improvement and performance evaluation by ---» The increasing digitalisation of
means of occasional data collection, and unlawful, permanent monitor- the world of work requires clear regula-
ing on the other. 172 For example, location tracking can be justified if it tions on employee data protection, as
is intended to ensure workers’ personal safety, assist aid efforts in the digitalisation also opens up far-reaching
event of an accident, or provide protection from crimes committed by monitoring possibilities for employers
third parties, i.e. to ensure employees can carry out their work safely. (e.g. social media monitoring, real-time
Another lawful purpose could be the desire to organise operational monitoring, linking data with staff
processes more effectively, for example in the case of shipping or taxi profiles, communication analysis, etc.). «
companies. The same applies to the optimisation of work carried out Federal Employment Agency
off-site, for example on construction sites. However, it is not permitted
to use legitimately collected data to subject staff to comprehensive
monitoring of their performance and behaviour.
169 See the expert workshop organised by the Federal Ministry of Labour and Social Affairs
on “Labour Law and Co-determination”, 170 Däubler 2015; Kopp/Sokoll 2015.
https://www.arbeitenviernull.de/fileadmin/Downloads/Dokumentation_WS_5.pdf. 171 Däubler 2013.
172 Krause (2017). 145
Policy Options
In principle, it could be argued that every form of permanent elec-
tronic monitoring serves a contractual purpose and, as it enables the
employer to ensure workers are actually performing in accordance with
their work contracts, should therefore be permitted. Given the particular
nature of digitalised monitoring, however, the principle of proportion-
ality applies. This form of monitoring registers even the smallest behav-
ioural anomalies, even those unnoticeable to a human observer, records
them and makes them permanently analysable. This runs counter to the
principle of proportionality in most cases.173
Similar arguments must be weighed up when it comes to analysing
workers’ personalities. Regarding the analysis of corporate social net-
works, one example of an acceptable purpose might be to improve intra-
corporate communication – for example between different sites. How-
ever, it is generally held that it would not be permissible to engage in
data retention and analyse the available data for different purposes.
The relevant literature has found that all-encompassing objectives under
which the analysis of employees’ personal data essentially constitutes an
end in itself to be impermissible.
The collection and processing of fitness and health data, which con-
stitutes a special category of personal data (Section 3 (9) of the Federal
Data Protection Act (Bundesdatenschutzgesetz)), require the employees’
consent, and stricter requirements apply for this consent (Section 4a (3)
of the Act).174
As these examples show, the general provisions on data protection in
the law as it stands place limits on the new possibilities emerging as a
result of digitalisation and Big Data without shutting them down
entirely. However, fundamental considerations must be weighed up
anew in each individual situation. For some issues, the law has been
developed further by court decisions, while for others this has not hap-
pened due to the absence of litigation before the courts. A wealth of
specialist literature indicates, however, that there is a significant need
for discussion and that the legal situation is not always entirely clear
for companies, in particular; nor for their employees.
173 Krause (2017).
146 174 Kopp/Sokoll 2015.
Policy Options
ISSUES RAISED IN THE CONSULTATION PROCESS ---» By 2025, Europe could achieve
Growing awareness of the theoretical, abstract possibilities of Big an increase of 1.25 trillion euros in
Data and data mining, as well as serious breaches of data protection industrial gross value added as a result
in isolated cases 175, have reinforced an existing sense of unease felt by of the digital transformation. (...) We
much of the population when it comes to the issue of data protection must now set the right political and
(→ Chapter 2.3). Almost two-thirds see this as the area with the greatest economic course if we do not want to
need for statutory regulation in the process of shaping the digitalisation lose this potential value added to other
of the world of work.176 regions of the world. This includes
expanding the digital infrastructure,
Trust in data protection is an important prerequisite for the accept- creating a European Digital Single
ance of digitalisation in both the economic sphere and the labour market, Market, and taking a responsible
and this has been grasped not only by EU institutions, but also by many approach to data in the digital world. «
companies, which welcome plans for the European Digital Single Market Federation of German Industries (BDI)
to be designed in such a way that it ensures a “responsible approach to data
in the digital world”. »
In the Work 4.0 dialogue, too, most opinions on the Green Paper
emphasised the importance of data protection. Trade unions and social
associations, in particular, advocate a specific Employee Data Protec- ---» ver.di is pressing for a strong,
tion Act. » modern Employee Data Protection Act
which reflects the risks resulting from
No side is calling for a reduction in the existing level of data protec- new analysis techniques, external data
tion. However, employers’ and business organisations emphasise that processing, and growing quantities
“striving for greater legal certainty must not lead to over-regulation of data. «
with unnecessary bureaucracy and few practical benefits.” » United Services Trade Union (ver.di)
The fault lines are particularly clear when it comes to works councils’ ---» Employee data protection has
participatory rights in relation to the introduction of technical devices a particularly important role to play
(Section 87 (1) no. 6 of the Works Constitution Act). On this point, com- today. However, this does not mean
panies and employers’ associations would like to see “modernisation”, that further legislation is needed. After
in the sense of “limiting” the right of co-determination “to those cases all, the level of data protection in
in which monitoring is actually intended”. In all other cases – i.e. even Germany is already very high by inter-
if technical devices generate data which could potentially be used for national standards. The Federal
monitoring, but the employer does not intend to make use of this pos- Data Protection Act already provides
sibility – the works council’s right of co-determination could be employees with very comprehensive
replaced, it is suggested, by a right for the works council to be informed protection from data misuse. «
of significant changes to technical devices. It is also proposed that the German Retail Federation (HDE)
175 Selig 2011.
176 Press and Information Office of the Federal Government (BPA) (2016). 147
Policy Options
---» Co-determination in relation
to the introduction or application of
technical devices has been overtaken by
reality. The large number of programs,
updates and software adjustments
make it all but impossible for both the
works council and for the company to
find a sensible approach to co-deter-
mination in this context. It should be
carefully limited to the initial intro-
duction of a system or significant
changes to it, although it must be
ensured that the provision’s protective
purpose remains in place. « glasses and mobile phones, for example, but also software which pro-
Gesamtmetall – Federation of German
Employers’ Associations in the Metal and
Electrical Engineering Industries
---» Theoretically, all software and
every update today can potentially be
used to monitor workers (even just as a
result of logging in and out), which
triggers the statutory requirement for
co-determination. Even works councils
are calling for a simplification once an
IT framework is in place: how can a
more pragmatic approach be taken
here in practice? « ment of technological developments, now and in the future; at the
Federal Association of Labour
Law Experts in Businesses (BVAU)
148
right of co-determination could be restricted to the initial introduction
of a system or significant changes to it. « technical solutions such as encryption and anonymisation could also
The other side is calling for co-determination to be strengthened:
any kind of opt-out from a high level of data protection is opposed by
trade unions. It is also proposed that co-determination rights should
be flanked by additional provisions in collective agreements.177 « protection” exists. In practice, however, Section 87 (1) no. 6 of the
SHAPING THE WAY AHEAD
The central challenge lies in maintaining Germany’s high level of
employee data protection amidst the digital transformation and at the
same time making use of the opportunities offered by technological
progress to shape the world of work.
In light of the challenges set out above, especially the need for legal
clarity on digital applications, as well as the necessary implementation of
the European General Data Protection Regulation in Germany, there is a
clear and present need for action. The General Data Protection Regulation
offers national legislators the option to introduce more specific provi-
sions on employee data protection, and this option should be used. The
main aim should be to avoid a reduction in the existing level of protection,
and to provide greater legal certainty and clarity for employers and
workers. This would also help to increase trust. How this is to be imple-
mented from a legislative perspective must be examined closely.
In substantive terms, a reliable basis is needed for the legal assess-
same time, there must not be an obstacle to technical innovation. This
means that principles must be formulated which, on the one hand,
allow data to be used selectively, for example to optimise business
processes, boost efficiency, measure performance generally in the
organisation, ensure health and safety at work, or identify where train-
ing is needed.178 On the other hand, however, secret checks, permanent
monitoring of work behaviour, and the creation of comprehensive
movement and behavioural profiles must remain generally prohibited,
and this may have to be made more explicit in the law. The use of
biometric systems and socio-psychological analysis as well as the
collection of employees’ health-related data should – again, explicitly –
be restricted to specifically regulated and limited purposes.
177 Marburg Federation of Doctors (MB) 2015.
178 Hornung/Hofmann 2015; Krause (2017).
Policy Options
Further research and assessment is needed with regard to whether ---» The IG BCE rejects, as a matter
of principle, the consideration of any
help to resolve data protection problems, and whether these could be kind of opt-out from a high level of
made mandatory. data protection. On the contrary, we
need more co-determination rights
At present, no explicit “right of co-determination in relation to data which enable workers and their works
councils to enforce a high level of
Works Constitution Act gives the works council a right of co-deter- data protection and minimise the
mination in relation to many processes in the digital working world. amount of systematically collected
Originally, this provision had a relatively narrow scope of application, personal data. Digitally generated
but due to the wider use of IT in the digital working world, in practice health data, for example, has no place
it now covers a large proportion of hardware and software use. This not in human resources data records. «
only includes the use of cameras, biometric access controls, smart Industrial Mining, Chemical and
Energy Union (IG BCE)
cesses user data (including data collected by non-technical means). The
introduction and use of such devices, or even a mere software update,
cannot go ahead without the works council’s consent.
As this provision was widely discussed in the consultation process, the
Federal Ministry of Labour and Social Affairs will examine whether and to
what extent there is a need for legislative action in this area. In view of the
need for rapid decisions on the use of devices in cases where co-determi-
nation is mandatory, it must also be ensured that works councils have the
resources to be able to act as competent discussion partners for em-
ployers in corporate change processes (→ Chapter 4.6).
149
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The pace at which the technical possibilities are evolving and the
complexity of applications are generating uncertainty amongst both
employers and works councils, and particularly in SMEs, around to
whether and how statutory provisions on data protection can be imple-
mented in practice. Against this background, the Federal Ministry of
Labour and Social Affairs is planning to develop an “Employee Data
Protection Index”. The aim is to develop well-researched, application-
focused quality standards for employee data protection , which – by
providing a tool for self-assessment or for certification – make employee
data protection in organisations easier to compare and more manageable.
In view of the decades-long debate, the changed legal framework
and the fact that technical possibilities and applications are not yet fully
understood, the Federal Ministry of Labour and Social Affairs will set up
an interdisciplinary advisory council in the near future, involving experts
with a background in labour law, occupational health and technology;
experts and practitioners in the field of data protection; and the social
partners. The advisory council will be tasked with taking stock and pre-
paring sector-specific legal provisions for employee data protection,
with a binding timetable. The Federal Ministry of Labour and Social
Affairs will also ensure that the provisions on employee data protection
are reviewed at suitable intervals to determine whether they are still
sufficient in light of technological developments.
150
Policy Options
SUMMARY
• Action is needed on employee data protection as a result, firstly, of
continuing technological developments and the growing importance of
digital applications in the world of work, and, secondly, of the new Euro-
pean legal framework, the European General Data Protection Regula-
tion, which is due to enter into force in 2018. The Regulation contains
“opening clauses” which allow specific provisions at national level in
certain areas.
• The Federal Ministry of Labour and Social Affairs will safeguard
statutory employee data protection in two steps. In the framework of
the planned “Data Protection Adaptation and Implementation Act EU”
(Datenschutz-Anpassungs- und Umsetzungsgesetz EU) implementing
the European General Data Protection Regulation, which will replace the
Federal Data Protection Act (Bundesdatenschutzgesetz) in its present
form, it will ensure that the crucial section for employee data protection
(Section 32 of the Federal Data Protection Act), which regulates “Data
collection, processing and use for employment-related purposes”, is retained.
The tried-and-tested approach of regulating data protection at the firm-
level in works agreements will also remain possible.
• As a second step, the Federal Ministry of Labour and Social Affairs
plans to make full use of the leeway the European General Data Pro-
tection Regulation offers national legislators for more specific provi-
sions. To this end, it will set up an interdisciplinary advisory council
which will support the Ministry in preparing these separate legal provi-
sions on employee data protection on the basis of a stock-taking exercise
and with a binding timetable.
• In addition, the Ministry will examine whether there is a need for
legislative action in relation to the Works Constitution Act (Betriebs-
verfassungsgesetz).
• The Federal Ministry of Labour and Social Affairs will support the
development of an “Employee Data Protection Index”, on the basis of
which well-researched quality standards can be developed to assist
companies and works councils, especially in SMEs, in the practical imple-
mentation of statutory data protection.
151
Policy Options
---» Co-determination is the
democratic principle for shaping the
social market economy. It must be
developed further to cope with the
challenges of the work of the future. « co-determination of workers at the workplace level (under the Works
Hans Böckler Foundation
---» Germany can take pride
in the achievements of the social
market economy, including the
social partnership. « been accelerated in particular by digitalisation and the increasing
Gesamtmetall – Federation of German
Employers’ Associations in the Metal and
Electrical Engineering Industries
---» Digital work, especially in
international production networks, is
affecting the traditional concept of a
company and posing new challenges
for the culture of co-determination.
The German Works Constitution
Act must be adapted and further
developed in light of these trends. « process regard the involvement and participation of workers as a key
Daimler AG
---» Co-determination is the founda-
tion for shaping good digital work and
offers instruments for finding compro-
mises in “new” problem areas, such as
work intensification, data protection,
restructuring processes, etc. To this end,
co-determination must be politically
strengthened and internationalised. «
Rail and Transport Union (EVG)
152
4.6 CO-DETERMINATION
AND PARTICIPATION:
TRANSFORMATION BASED
ON SOCIAL PARTNERSHIP
In the German model of the social market economy , institutional
Constitution Act (Betriebsverfassungsgesetz)) and at the company level
(under the statutory provisions on co-determination in supervisory
boards) has always played a vital role. Its benefits in weathering crises
and structural upheavals have repeatedly been demonstrated. « reach a consensus through negotiation. This requires structural conditions
The changes in markets and companies in recent years, which have
transnationalisation of value chains and work contexts, are also having a
direct impact on industrial relations (→ Chapter 2.6). The best chance of
successfully coping with current and future transformations in the
world of work exists if companies and workers shape them in partnership
and fairly consider and balance the needs of both sides. «
ISSUES RAISED IN THE CONSULTATION PROCESS
This fundamental idea runs through many responses to the Green
Paper on Work 4.0 published by the Federal Ministry of Labour and
Social Affairs, and the vast majority of participants in the consultation
factor for successfully shaping tomorrow’s working world. That said, the
responses submitted by workers’ representatives and business associa-
tions also reveal very different views on the question of whether or not
Policy Options
recent developments in the world of work make it necessary to expand ---» Cooperation, in a spirit of trust,
existing co-determination regulations. » between the employer, the works
council and the workforce will not be
Notwithstanding this, it makes sense to primarily use the existing instru- abandoned because of the develop-
ments of institutional co-determination , not least because, as was ments in the framework of “Work 4.0”.
also made clear in the consultation process, co-determination contin- Existing staff representation structures
ues to command broad and undiminished support in society, among will, however, be changed by digitali-
workers – including senior managers – and also many employers. 179 sation. In this context, the current
That said, the conclusions and reflections set out below should not be balance between entrepreneurial free-
seen as a general co-determination strategy. Instead, they relate to dom in decision-making and rights
specific questions regarding workers’ participation in changed corporate of participation and involvement
and organisational structures of Work 4.0. » must be respected, as must the limits
of co-determination stipulated by
What is vital in this context is, primarily, a willingness and ability to constitutional law. «
Confederation of German
Employers’ Associations (BDA)
and forums for such negotiations, as well as an ability to compromise and
a willingness to learn from past developments. Looking at individual
forms of democratic participation and institutional co-determination
together can benefit both, and can increase workers’ opportunities for
participation as a whole. Particularly in sectors such as the ICT industry,
which has no tradition of social partnership, experiments with new partici-
pation strategies and agile forms of work have been taking place, self- ---» Work 4.0 will be different from
organisation is expected, and innovation processes are changing. 180 today’s work. It must be possible for the
Many workers also want to be directly involved.181 social partners at the workplace level
to shape this transformation on an equal
Given that new ways of organising work are placing growing emphasis footing. This requires a significant
on horizontal concentration of knowledge, possibilities for participation expansion in co-determination rights. «
by individual workers and self-organisation in teams, it is also in the orga- German Trade Union Confederation (DGB)
nisation’s best interest to strengthen participatory elements at work-
place level. Agile markets need agile corporate decision-making pro-
cesses to allow rapid responses to changes in customer preferences or ---» From a managerial perspective,
other market requirements. In the long term, this is only possible with the co-determination in Germany has
proven its worth, especially due to its
effectiveness in promoting cooperation
and social peace. «
German Confederation of Managers (DFK)
179 Nienhüser et al. 2016.
180 See the expert workshop organised by the Federal Ministry of Labour and Social Affairs
on “Socially Compatible Change Management and Good Corporate Management”,
http://www.arbeitenviernull.de/dialogprozess/workshops.html.
181 Sattelberger u. a. 2015. 153
Policy Options
---» Companies use various
instruments to secure workers’ par-
ticipation and involvement. On the
one hand, they do so to fully leverage
their workforce’s expertise for the sake
of competitiveness, but on the other
hand they also do so to identify
workers’ needs and boost their attrac-
tiveness as an employer. Consequently,
strategic decisions in companies are
more and more often being taken with
the aid of working groups, large-scale
employee surveys or workshops.
Employers’ Association of Insurance
Companies in Germany (AGV)
154
optimal involvement of all talents, perspectives and skills in the com-
pany. The transformation of work should therefore be shaped in part-
nership, taking into account both the company’s requirements and
workers’ needs and preferences in order to make the most of the orga-
nisation’s potential. Experimental spaces (→ Chapter 5) developed on
the basis of social partnership can take the form of labs for trying new
models in practice (→ box). «
« disruptive transformation of the financial industry. The focus here is primarily
Policy Options
EXPERIMENTAL SPACES AT ROBERT BOSCH GMBH AND
FIDUCIA & GAD IT AG
Companies are currently seeking a blueprint for the future world of work.
Companies as varied as the industrial group Robert Bosch GmbH and the IT
service provider Fiducia & GAD IT AG have begun to set up labs to experiment with
new approaches in practice. In future, these companies want to drive forward
disruptive innovations and new business models in their organisations without
jeopardising their stability, and they want to include and involve their staff in
this process. At Robert Bosch GmbH, staff and managers are looking at the
question of how it is possible to successfully move towards becoming an “agile
company”, in view of the rapid changes in the automotive industry. Agile forms
of work, new requirements for managers and even changes in the corporate
culture are being developed in pilot units. Meanwhile, Fiducia & GAD IT AG, as
the IT service provider to the cooperative banks, is actively grappling with the
on new ways of generating innovations and their implications for staff – from
working time to new demands.
“We’ve learned that we’re not dealing with a normal change process; we’re
facing a genuine revolution,” explains Jörg Staff, member of the executive
board and labour director of Fiducia & GAD IT AG. As open-minded experimen-
tal spaces , both companies’ labs take an agile approach in their work. Instead
of the focus being on executing a predefined project plan, tasks and objectives
are set in short cycles. Workers and managers from the departments concerned
produce concrete outcomes in sprints lasting a few weeks. “It’s very important
to us that solutions aren’t developed in a vacuum; instead, employees must be at
the heart of the process and involved from the outset,” stresses Alfred Löckle,
the chairman of the central works council at Robert Bosch GmbH.
The basis for the labs’ success is a steering committee with high-profile
members, structured on the basis of social partnership. The committee ensures
that the outcomes are anchored in the wider company and uses these out-
comes to define the way ahead in the transformation process. The fact that it is
structured on the basis of social partnership ensures that the steering committee
promotes a long-term perspective for the labs, and gives the workforce the trust
they require to accept change processes. As these labs represent uncharted terri-
tory for the companies concerned, they are drawing upon independent academic
support from the Institute of Social Science Research Munich (ISF München).
155
Policy Options
---» The fundamentally positive,
SME-driven culture of internal com-
promise in e-commerce and distance
selling has always resulted in much less
friction in organisations. Both emp-
loyers and employees value direct
dialogue, which allows key issues to be
regulated without recourse to
associations or trade unions.
German E-Commerce and Distance Selling Trade
Association (bevh)
---» The economic environment in
Germany has, for years, been charac-
terised by sweeping corporate and
group restructurings, both organisa-
tional and legal in nature, takeovers,
spin-offs and mergers. By international
standards, it is remarkable how
smoothly these processes have taken
place, which is thanks in no small part
to co-determination.
German Confederation of Managers (DFK)
156
The Works Constitution Act offers many possibilities for broad involve-
ment of the workforce and is compatible with Scrum or other forms of
agile resource planning. Many works councils have therefore long since
started using innovative forms of targeted grassroots democratic involve-
ment of the workers they represent.
Conversely, those workforces where great emphasis is placed on indi-
vidual participation can benefit from the advantages of institutional
« co-determination . Flatter hierarchies do not necessarily mean more
and better opportunities for participation, and greater individualisation
of the workforce can also lead to conflicts if some workers who are strong
negotiators can win more flexibility for themselves at the expense of oth-
er, less assertive workers. Institutional co-determination at the level of
the workplace can reconcile divergent wishes and play a part in enabling
all workers to benefit equally from more negotiated flexibility.
Likewise, when dismissals for operational reasons have to be negoti-
ated with management, guaranteed rights for employee representatives
are an important safeguard for negotiations on an equal footing.182 Yet
only a minority of employees in Germany – just four in ten – are currently
represented by a works council. They exist in fewer than one in ten organ-
isations with five or more workers, and it is only from about the level of 100
workers that organisations with a works council are in the majority.183
« It is far from the case that workers in organisations without a works
council inevitably have inadequate opportunities for participation, as
such opportunities can also be realised outside the statutory frame-
work. Yet if there is no works council, it is at least questionable how
consistently available the conditions are for the two sides to negotiate
compromises on an equal footing in difficult times. Ultimately, co-deter-
mination must be based on rights, not promises. Where negotiating
compromises and developing a framework for change processes leads
182 See the expert workshop organised by the Federal Ministry of Labour and Social Affairs on
“Labour Law and Co-determination”, https://www.arbeitenviernull.de/fileadmin/Downloads/
Dokumentation_WS_5.pdf.
183 Ellguth/Kohaut 2016.
Policy Options
to friction, and at the latest when rights also have to be secured in ---» In an era of skilled labour
court, only institutional co-determination offers reliability for workers. short ages, we can say that today it is
This makes the legal framework for the establishment and functioning of an “employee’s market”. The bargain-
works councils all the more important. » ing position of workers has improved
enormously compared to that of employ-
SHAPING THE WAY AHEAD ers. The playing field is a level one, at
As an outcome of the Work 4.0 dialogue, the Federal Ministry of the very least. And so tailored solutions,
Labour and Social Affairs has identified a total of four key elements in negotiated between employees and
consolidating and strengthening the negotiation of flexibility compro- employers, are preferable to rigid
mises by the social partners in the coming years. These are: stabilising statutory requirements which seek
and strengthening collective bargaining structures in Germany, to cover every possible case. «
widening the basis for participation by workers, safeguarding ad- The Young Entrepreneurs (BJU)
equate rights and resources for co-determination in the digital world
of work, and safeguarding standards for corporate co-determination – --- » In the – still growing – zones
including in Europe. without works councils or collective
agreements, a minimum level of accept-
To create solid foundations for shaping the world of work on the basis of able working conditions can exist if
social partnership, the Federal Ministry of Labour and Social Affairs is works councils are set up and collective
vigorously pursuing the Federal Government’s shared goal of boosting agreements are brought into force. «
collective bargaining coverage in Germany. One particular challenge Hans Böckler Foundation
in this context is the fact that the lines between different sectors will
continue to blur as a result of digital structural change. Widely binding
« collective agreements can be extremely helpful in managing change
processes, especially in the era of digitalisation. For collective bargaining
coverage allows working conditions to be regulated even in areas
where the state would find it difficult or impossible to achieve a compa-
rable level of clarity, customisation and detail via general legislation. The
financial and economic crisis is just one of the situations which have
highlighted how tailored and flexible collective agreements are today,
and how fully they take into account the differing concerns of organi-
sations even within the same sector.
157
Policy Options
One way to boost collective bargaining coverage could be to create
incentives for membership in employers’ associations and trade unions,
in order to create a broader legitimising basis for regulations in collec-
tive agreements. The Federal Ministry of Labour and Social Affairs is
examining whether such incentives, particularly in relation to employers’
associations, can be implemented in legislative initiatives, for example
on the regulation of temporary agency work or occupational pension
schemes, by making collective bargaining coverage a prerequisite for
the options enshrined in the legislation – in other words, allowing
greater flexibility, but only via a collective agreement. The extension of
collective agreements can also play a part in this. In some sectors,
however, the barriers to extending collective agreements are too high.
They must be lowered, with the aim of boosting collective bargaining
coverage in this respect as well.
Active staff representation bodies are vital to the successful organi-
sation of working conditions, and they are irreplaceable counterparts
for management, especially in coping with disruption in the digital
world of work. The Works Constitution Act’s provisions offer a tried-
and-tested, stable and recognised basis for worker co-determination .
In light of this, the Federal Ministry of Labour and Social Affairs is aiming
to foster the establishment of works councils.
In addition, it is seeking to expand the scope of the simplified elec-
toral procedure introduced by the 2001 reform of the Works Constitu-
tion Act so that it applies to a wider group.184 To date, it has applied only
to organisations which have five to 50 workers with voting rights and, if
agreed with the employer, organisations with 51 to 100 eligible voters.
The simplified electoral procedure should be binding in organisations
with up to 100 eligible voters. The provision for small organisations is
specifically intended to encourage the creation of works councils in
this category, where they are still significantly underrepresented.185
Changing the thresholds for the simplified electoral procedure can
also help to reduce the prevention and obstruction of works council
elections. According to surveys of trade union officials, this occurs dis-
proportionately often in small organisations with 51 or more employees.186
Obstructing works council elections and the activities of these councils
184 In addition to formal simplifications for small organisations, the simplified electoral procedure
also involves shorter time limits for the election of the works council.
185 See Greifenstein et al. 2014.
158 186 Behrens/Dribbusch 2014.
Policy Options
is not a trivial offence. One important element in fostering the establish-
ment of works councils is to improve the protection against the dismissal
of employees who press for a works council to be set up. The Federal
Ministry of Labour and Social Affairs is observing developments in
these areas very closely, and will examine whether the Works Constitu-
tion Act’s sanctions for obstructing works council elections need to be
increased, and whether and what adjustments are necessary to better
protect those who press for co-determination .
There is a general consensus that the digital world of work is placing
greater demands on staff representatives as a result of rapid changes and
greater complexity. They have to be able to correctly assess technical
and organisational developments, find approaches which reflect work-
ers’ interests, and reach solutions in dialogue with management. A well- --- » The co-determination process
qualified and well-advised works council reflects companies’ legitimate needs to become more rapid and effi-
interest in rapid decisions and procedures tailored to the organisation cient, to reflect the ever faster decision-
in question. A works council of this kind can assess complex IT issues making in the digitalised environment
and updates which are to be applied at short notice much more rapidly and changes in functional units. Great-
and thus react much more quickly, which in turn would help to signifi- er use must be made of digital means
cantly speed up co-determination processes in the digital working of communication in the involvement
world, as called for by employers. In other words, there is a need for regu- of the works council and in the dialogue
lar skills development, on the one hand, and access to expert support, between works council members. «
on the other. » Bavarian Industry Association (VBW)
As the law stands, the employer must enable the works council to
fulfil its function by making knowledgeable personnel available to
provide information; external experts can also be consulted if this is
agreed. Going beyond this, a discussion took place in the consultation
process on whether works councils should be given the right to consult
an expert before the introduction of new work processes and equipment,
new hardware or new software.
The Federal Ministry of Labour and Social Affairs is seeking to intro-
duce this right, which should be based on the following principle: the
consultation of an expert should be limited to the right of co-determina-
tion in relation to the introduction and use of technical devices designed
159
Policy Options
---» Today, whether the right of
co-determination applies in relation to
the introduction and use of technical
devices depends solely on the possi-
bility for these devices to be used to
monitor performance and behaviour.
This is an overly narrow approach
which prevents processes being imple-
mented that reflect the reality of day-
to-day business. It is no longer suited
to a digitalised working world.
Federation of Chemical Employers’
Associations (BAVC)
---» Co-determination rights in
relation to the introduction of new
technologies and work processes,
including technological impact
a ssessments, must be
significantly expanded.
German Trade Union Confederation (DGB)
160
to monitor the behaviour or performance of the employees (Section 87 (1)
no. 6 of the Works Constitution Act), as this provision covers the main
aspects of the digital working world. The right should not be subject to
a requirement that a knowledgeable employee within the organisation
must first be made available. Processes and applications are changing
at high speed in the digital working world, and this ought to be reflected
by a legal provision enabling the works council to directly access external
expertise. While this would initially result in higher costs, the works
council would be able to react more quickly, offering the prospect of
solutions being implemented more rapidly, which could reduce costs
and work. Nonetheless, given the cost companies would incur as a result
of the new provision, it would be appropriate for this right to only apply
in the case of companies with 300 or more employees (similarly to the right
to retain a consultant under Section 111 of the Works Constitution Act).
Although the term “data protection” is not explicitly mentioned in
the Works Constitution Act, in practice many works councils use their
right of co-determination under Section 87 (1) no. 6 of the Works
Constitution Act to conclude works agreements on data protection
(→ Chapter 4.5). 187 The Federal Ministry of Labour and Social Affairs
will examine – particularly in view of the EU General Data Protection
Regulation – whether and to what extent there is a need for legislative
action in this area.
« and a proven track record, particularly in times of crisis. The Federal
During the consultation process, many business associations and
companies called for the works council’s right of co-determination to be
limited to cases in which a technological innovation is intended to result
in the monitoring of employees’ performance or behaviour. In cases
where monitoring merely becomes possible as a result of the innovation,
but is not intended, it was argued that the works council should only
have a right to be informed. However, this would significantly water down
a co-determination right in an area which is becoming ever more impor-
tant in practice and which is a source of great concern for workers – even
if they are not facing a specific case where an intention to introduce
monitoring has been expressly stated, or the possibility of monitoring
is to be introduced. This, in particular, is an area where it should be in the
« interest of both sides for solutions to be reached in agreement between
management and qualified staff representatives. « To safeguard existing standards, a 14th Company Law Directive on
187 Baumann/Maschke 2016
Policy Options
However, the suggestion that the way in which works councils oper- ---» The issue of online or video
ate needs to change in the digital era is generally valid. For example, it conferences is relevant in practice for
has long been a simple matter, in technical terms, to hold video confer- all supra-regional staff representation
ences between various sites. Nor does the law as it stands prevent video bodies. Central and group-level works
conferences between works council members. However, they are not councils often have members from across
permitted at present for works council meetings, due to the important Germany and cannot schedule many
principle that these meetings are private. Unlike in the case of face-to- regular meetings at which decisions can
face meetings, it is impossible to ensure that no third party is listening in be taken. This can considerably slow
on a video conference out of view of the camera or outside the meeting down co-determination processes and
rooms, or secretly recording the meeting. Video conferences also lack the thus the implementation of business
element of direct face-to-face interaction, which is growing more impor- projects, which can also count against
tant as work contexts become more virtual. Nonetheless, the possibility Germany in decisions on business loca-
of allowing works council meetings to take place via video conference in tions within international groups. «
exceptional cases could be considered. This should, however, have to be Federal Association of Labour
Law Experts in Businesses (BVAU)
at the works council’s initiative, based on a unanimous decision, and lim-
ited to narrowly defined exceptional cases where particular urgency makes
it extremely difficult to organise a face-to-face meeting. In addition, the
employer would have to take technical measures to ensure that third
parties would not be able to listen in on the meeting. »
Staff representation on companies’ supervisory and administrative
boards is also particularly important in turbulent times. In Germany,
corporate co-determination can look back on decades of visible successes
Government has embedded corporate co-determination in the negotia-
tions on European company law directives – especially on the European
Company (SE) – and thus protected workers’ existing rights.
Digitalisation makes it easier for companies to be organised transna- ---» Work 4.0 will often consist of
tionally, particularly within the integrated European single market. work within a global group. In this
However, to ensure that corporate co-determination cannot be circum- context, strong corporate co-deter-
vented by the use of European legal forms or the use of foreign legal mination, in particular, plays a key
forms in Germany on the basis of freedom of establishment, further and constructive role. It enables direct
regulatory steps are needed, especially at European level, so that the discussion with shareholder represen-
proven benefits of solutions negotiated on the basis of social partner- tatives in the supervisory board and
ship can be reaped even if companies become more international. » allows joint supervision of and provi-
sion of advice to the executive board. «
German Trade Union Confederation (DGB)
the cross-border relocation of companies’ registered offices needs to be
adopted. This is a key priority for the Federal Ministry of Labour and Social
161
Policy Options
Affairs. The aim is to ensure that this directive is placed (back) on the
political agenda in Brussels. In order to firmly embed corporate co-deter-
mination in Europe in the long term, the Federal Ministry of Labour and
Social Affairs is also supporting the European Trade Union Confedera-
tion’s call for minimum standards of employee participation to be firmly
anchored in Europe. To this end, negotiations should be launched on a
directive on minimum standards. A directive of this kind could also respond
to the issues raised in relation to the SE – the “freezing of co-determi-
nation ” and the call for adjustments in the event that national thresholds
are crossed – without, however, calling into question the consensus
achieved on the SE itself.
At national level, the possibilities offered by company law for compa-
nies to establish subsidiaries must not continue to lead to a loss of co-
determination . This could be countered by ensuring that employees
in subsidiaries and second-tier subsidiaries count directly towards the
threshold in the Act on One-Third Employee Representation in the Super-
visory Board (Drittelbeteiligungsgesetz) – as is already the case for the
Co-determination Act (Mitbestimmungsgesetz).
162
Policy Options
A BRIEF ASIDE: THE “COMPANY” CONCEPT, CORE AND
PERIPHERAL WORKFORCES, AND CO-DETERMINATION
The question of whether the digital transformation of the economy requires
some kind of revision of the concept of a “company” to reflect the potential
---» The concept of the company
further virtualisation of work contexts, especially in the Works Constitution Act must also be rethought as a result of
(Betriebsverfassungsgesetz), has been the subject of intensive discussion in the digitalisation – as digital technologies
Work 4.0 dialogue. 188 There is no legal definition of what constitutes a “com- mean work is increasingly no longer
pany”; rather, the term was coined and has been developed further by court
tied to a specific location, but defined
decisions. The Federal Labour Court and the legal literature understand a company
as “the organisational unit within which the entrepreneur, alone or together more and more by virtual access, or-
with staff, continuously pursues certain work-related purposes using tangible ganisation and monitoring of digital
and intangible assets”. This definition of a company contains no geographical processes. A review is therefore needed
limitations – it also covers teleworkers and off-site workers. In other words, a
of whether the term “company” must be
company does not end at the factory gates. The crucial issue is whether the
employer is pursuing a work-related purpose with the employees’ assistance. adapted. «
Even a purely “virtual permanent establishment” and other modern organisa- German Trade Union Confederation (DGB)
tional structures can, in principle, be covered by the definition of company as it
has been developed by court decisions. » ---» The existing co-determination
As well as the possibility of the company being the sole organisational unit, the system focuses on the concept of the
law already offers various flexible options for creating works council structures company, which is rooted in the era of
which reflect the specific organisational and decision-making structures of the traditional, industrial organisation of
company or group, and which ensure that the works council can always function
work, tied to a specific location. This
at the level where the key decisions are taken. The main instrument for such
arrangements is the collective agreement. Works agreements are permitted if there concept is losing its significance due to
is no relevant provision in a collective agreement and no other collective agree- growing flexibility and digitalisation. «
ment applies. This is a suitable approach, as further scope for agreements which Federation of Chemical
create staff representation structures across company boundaries would lead to Employers’ Associations (BAVC)
a disconnect between co-determination and the actual company in question. »
The Federal Ministry of Labour and Social Affairs believes that, in practice, ---» With work taking place in virtu-
the shaping of the term “company” by court decisions and the broad scope in al space, greater flexibility should be in-
the Works Constitution Act for agreement-based solutions are more helpful
troduced regarding the possibilities for
than a formal definition of the term “company”, which would be at risk of being
rendered outdated by new developments a day later. These measures mean it will reorganising company structures via
remain possible in future to react quickly and effectively to developments which works agreements, and employers and
cannot be foreseen by legislators. The Federal Ministry of Labour and Social works councils should be given greater
Affairs therefore sees no need for regulatory action regarding the concept of the
leeway in the delineation of their com-
“company” at present, but will nonetheless keep a very close eye on future devel-
opments and their implications for co-determination. pany. «
Confederation of German Employers’ Associations
Another issue discussed in close connection with the concept of the “company” (BDA)
is eliminating qualitative disparities in co-determination in relation to core
and peripheral workforces. This discussion is taking place against the back-
ground of scenarios in which, due to new possibilities of digitalisation and the
subsequent outsourcing of work processes from what was previously the
188 See the expert workshop organised by the Federal Ministry of Labour and Social
Affairs on “Labour Law and Co-determination”, https://www.arbeitenviernull.de/
fileadmin/Downloads/Dokumentation_WS_5.pdf; Uffmann 2016. 163
Policy Options Policy Options

---» Co-determination is at risk of
losing all meaning in the case of cloud-
based IT systems, if applications are no
longer managed by the company itself
but by third parties, in international
corporate groups where there is no au-
thorised negotiating partner on the
employer’s side or the partner does not
possess sufficient powers at national
level, if works councils are no longer re-
sponsible for the people working in the
company because the basis for staff
representation is fragmented by grow-
ing peripheral workforces, or if the
company as the basis for works council
rights is at risk of eroding.
Hans Böckler Foundation
company’s core, greater use is made of flexible ways of purchasing labour, SUMMARY
with the risk of an erosion of the foundation for institutional co-determination
(→ Chapter 2.6). « • Social partnership, co-determination and democratic participation
in the design of working conditions are a core element of the German
It must be borne in mind that the “company” concept determines the organ- social market economy, a force for stability in times of crisis, and factors
isational unit in which works councils are set up and exercise their participa- for success even in the face of international competition. They are an
tory rights. In this framework, the works council is entitled, as the employer’s
important element of a good corporate and management culture, not
counterpart, to place limits on the employer’s right to issue instructions to
employees. “Peripheral workforces” are not a homogenous group, and so dis-
barriers to it.
parities exist with regard to the employer’s right to issue instructions to them.
For example, temporary agency workers are subject to the instructions of the
employer in the organisation to which they are assigned, and so works councils
• To successfully cope with digital change, the structural conditions
for negotiation processes between the social partners and at the work-
have corresponding participatory rights. Accordingly, the bill to combat misuse
of temporary agency work and contracts for work and services also clarifies
place level need to be strengthened. In particular, there is a need for a
that, in principle, temporary agency workers count towards the thresholds for stabilisation of collective bargaining structures in Germany, a broader
staff representation. foundation for workers’ involvement in their organisations, adequate
rights and resources for works councils and staff councils, and the safe-
The situation is different in the case of contract workers who are active on-site.
The employer of the organisation where they are working has no right to issue
guarding of national standards of corporate co-determination, including
« instructions to them, and so there is no basis for the works council to have co- at European level.
determination rights. For example, an employer cannot instruct the contract

---» The rights of precarious work-

ers must be brought into line with those
of the core workforce. This applies to
collective agreements and to co-deter-
«
mination.
DB Dienstleistungen GmbH –
Divisional Works Council
workers on-site at the organisation in question to comply with the working
times set out in a works agreement.
However, beyond the question of the employer’s power to issue instructions,
the digital transformation of the economy and the potential for a future
increase in the role of self-employed or employee-like workers in the production
of goods and services are also raising new questions about these workers’ need
for protection and consideration in the staff representation system. In some
cases, this is leading to calls for the scope of application of the Works Consti-
tution Act to be widened to include all economically dependent persons or
persons in need of social protection who are involved in the pursuit of the
company’s work-related purpose (→ Chapter 4.7).189
• The Federal Ministry of Labour and Social Affairs will therefore con-
tinue to make greater regulatory options in future legislative initiatives
contingent on the existence of collective agreements. It will take steps
to promote the establishment of works councils, and it will – including
in the interests of companies, which have legitimate needs for greater
flexibility in light of rapid market changes – present proposals as to
how works councils’ ability to engage in co-determination effectively
and efficiently in the digital world of work can be boosted.
• The Federal Ministry of Labour and Social Affairs sees no need at
present for regulatory action regarding the concept of the “company”,
but will continue to monitor this issue.

189 See, for example, Conference of the Labour and Social Affairs Ministers of the
Länder (ASMK), Conference of Deputy Ministers (2016).

164 165
Policy Options Policy Options

4.7 SELF-EMPLOYMENT: FOSTERING
FREEDOM AND SOCIAL PROTECTION
---» The German economy will
benefit more and more from solo
self-employed individuals. Starting a
business must therefore be an attractive
proposition. This is achieved by financ-
ing and capitalisation models which
do not require an undertaking’s success
to be 100 per cent guaranteed before
it has even begun. An economy
which thrives on the spirit of
invention and innovation must be
able to allow failures.
Alliance of German Designers (AGD)
---» Digitalisation and inter-
connectedness are fuelling the trend
towards self-employment. These
self-employed workers often have
several sources of income and are
active in several business fields, and
they must urgently be taken
into consideration.
Self-employed individuals, with their entrepreneurial spirit, are the
backbone of the economy and essential drivers of growth, innovation
and employment in Germany. Yet self-employment takes many forms: it
ranges from established entrepreneurs in the high-tech sector and tradi-
tional craft businesses, to risk-taking business founders, freelancers and
creatives, to casual self-employed workers. The digital transformation
is widely expected to result in a rise in new forms of self-employed work.
This is also likely to lead to further variety in self-employment, from app
programmers in the “crowd” to “on-demand” cleaners (→ Chapter 2.2). ««
By international standards, Germany has relatively low levels of business
« start-ups. Nonetheless, self-employment rose significantly from the
1990s to 2012. In recent years it has declined again slightly. In order to
unlock the potential of small and medium-sized businesses in particular,
it remains important to support self-employed individuals and business
founders, to promote research and development, to facilitate coopera-
tion with the research community, and to support innovation consulting
in organisations. The federal support programmes which supplement the
comprehensive services available from banks and private investors to
finance start-ups and SMEs include low-interest loans, guarantees and
start-up grants. «
« 22 Apr. 2015 via arbeitenviernull.de
pulsory social security systems. This perspective instead assumes that ---» Self-employed people are
self-employed individuals can earn a good living and make private pro- responsible for their own social
visions to protect themselves from social risks. » protection. «
Association of German Chambers of Commerce
and Industry (DIHK)
ISSUES RAISED IN THE CONSULTATION PROCESS
Scrutinizing issues which are particularly important to self-employed
individuals was a priority in the Work 4.0 dialogue. It became clear ---» Self-employed individuals can
that the question of self-employed individuals’ need for social protection decide for themselves when, where and
is arising anew today. That said, the concerns of self-employed individ- on what terms they want to work. «
uals vary widely, depending on their economic and social situation. » Confederation of German
Employers’ Associations (BDA)
In discussions with representatives of self-employed workers, small
business owners and business founders, a wide range of positions were ---» This raises the question of
put forward on matters such as provision for old age – from the desire whether the living and income situations
for complete freedom from state interference, to the inclusion of self- of solo self-employed persons, and
employed individuals with low incomes in the artists’ social insurance especially crowdworkers, allow any real
system, to the proposal of an unconditional basic income for all citi- level of voluntary social protection. «
zens. Self-employed individuals with low incomes often complain that German Association for Social Security Research
and Policy (GVG)
remuneration and fees are too low, making it impossible to finance an
appropriate level of social protection. Many self-employed persons also
drew attention to the rising overall burden of social insurance contribu-
tions in the event that compulsory old-age provision is introduced. » ---» A pension insurance obligation
for self-employed persons amounts to
the economic disempowerment of respon-
sible individuals. Disempowerment by
the nanny state, you might say. «

22 Apr. 2015 via arbeitenviernull.de
---» Anyone who focuses solely on
start-ups is forgetting that 80 per
cent of entrepreneurs are small
business owners. They are the econo-
my’s backbone; start ups are
In principle, the challenges of the world of work 4.0 discussed in pre-
vious sections apply equally to the entire labour force, including self-em-
ployed individuals and employees alike. However, the policy options
which have been outlined, particularly those focusing on protection and ---» As a creative who tends to have
social safeguards, primarily relate to the latter. This reflects the fact an irregular income, I naturally take a
that self- employed individuals have traditionally been regarded as less very positive view of a basic income. «
in need of protection. They are therefore deliberately exempted from 22 Jan. 2016 via arbeitenviernull.de

the drivers of innovation. « many labour and social laws and are generally not covered by the com-
22 Apr. 2015 via arbeitenviernull.de

166 167
Policy Options
---» Discontinuous employment
histories, with alternating periods of
employment in jobs with compulsory
social insurance coverage and solo
self-employment, require adjustments
to the social insurance systems.
United Services Trade Union (ver.di)
---» With the advance of digitali-
sation and a changed working world
with new forms of work, the question of
social protection for the rising number
of solo self-employed individuals, or
freelancers, is becoming more urgent.
Their earnings are often too low for
them to be able to afford personal
forms of provision for old age, and so
they are having to go without.
Social Organisation Germany (SoVD)
---» As a consequence of digitali-
sation, new self-employment relation-
ships are emerging around the indus-
trial cores. They take different forms. Not
all of these self-employment relation-
ships are emerging in the legal grey
area of platforms, crowds or the cloud.
In many cases, however, economic depen-
dencies develop between solo self-em-
ployed persons and major customers.
Industrial Mining, Chemical and
Energy Union (IG BCE)
168
Changes in people’s employment histories are leading to these issues
being seen in a new light. “Once self-employed, always self-employed” –
although this will remain true for some self-employed persons, for others
the new diversity in employment histories will increasingly mean moving
between dependent employment and self-employment or combining
« employment with self-employment on the side. « incomes. Almost half of formerly self-employed people have a net
The dynamic development of self-employment (→ Chapter 2.1) has
drawn growing attention to self-employed persons’ provision for old age.
Only a small proportion of these individuals are subject to a statutory
obligation to make provision for old age.190 The vast majority, around three
million people, are not subject to this requirement. «
In this context, there are a range of uncertainties and difficulties to
consider. Although some self-employed people own significant means
of production, the potential proceeds which can be obtained by selling
the business upon retirement are difficult to calculate years or decades
in advance. 191 Furthermore, in the event of insolvency, all assets can be
« lost, including private investments made as provision for old age. In
discontinuous employment histories with alternating periods of self-
employment and dependent employment, relatively short periods of
self-employment will generally not be sufficient to build up adequate
personal provision for old age, especially if earnings during these peri-
ods are low. At the same time, gaps emerge in people’s contributions
history in the statutory pension insurance system. Individuals who have
a very low income over the long term are also unlikely to voluntarily
make personal provision for old age. And finally, there are forms of
work which seem difficult to categorise as employment or a self-
employed activity, which results in uncertainty around whether social
insurance is compulsory.192 « accident insurance fund in question, i.e. insurance coverage exists due
« to a decision by the fund’s board of governors. Examples include the
Yet even if people are self-employed for most of their working life
and make a good living, there is no guarantee that they are also mak-
ing provision for old age, rather than relying on basic income support
benefits later in life. Often they also underestimate their future needs.
The fact is that many formerly self-employed persons are dependent
190 Around 280,000 self-employed individuals are compulsorily insured in the statutory pension
insurance system, and around 150,000 in the farmers’ pension scheme. In addition, an estimated
380,000 self-employed persons are members of professional retirement schemes. Around a
further 420,000 are already drawing a statutory pension and/or are over 65.
191 Kreikebohm/Kuszynski 2011.
192 Zapfel 2013.
Policy Options
on basic income support in old age. They account for a significantly
higher proportion of people receiving basic income support in old age
(17 per cent) than they do among senior citizens who do not receive
basic income support (10 per cent). While many have a high income,
there are also many formerly self-employed senior citizens with low
income of under 1000 euros, while this is true of just over a third of
former blue-collar or white-collar employees. On the other hand, nine
per cent of self-employed people have an income of over 3000 euros in
old age – the same can be said of just two per cent of former blue-collar
or white-collar employees.193
Some self-employed individuals also have problems paying the con-
tributions for their health insurance. This has led to high contribution
arrears in the statutory health insurance system, which have to be paid
for by the pool of insured persons. Only a few groups of freelance pro-
fessionals and business owners are subject to compulsory insurance in
the statutory health insurance system. All other self-employed people ---» As a freelancer, I would
can voluntarily enrol in the statutory system or take out private health really like to live off my work and
insurance. Everyone is required to have health insurance, however. not constantly need to pay yet more
Since 2006, a catch-all insurance obligation in the statutory health taxes or disproportionately high
insurance system has applied. In this case, the minimum contribution social security contributions (e.g.
to be paid by self-employed individuals is around 400 euros, depending to the health insurance fund). «
on the choice of insurance fund. » 22 Apr. 2015 via arbeitenviernull.de
Self-employed persons in certain sectors are compulsorily insured by
law in the statutory accident insurance system (agriculture, the health
service, voluntary welfare organisations), while in other sectors people
are compulsorily insured based on the statutes of the occupational
textile and clothing industry, the printing and paper industry, and hair-
dressers. In all other cases, it is possible to obtain insurance coverage
on a voluntary basis. Compulsory insurance on the basis of insurance
funds’ statutes offers a system-compatible means of extending accident
insurance coverage to further groups in a targeted, sector-specific way.
193 2016 report on provision for old age (Federal Ministry of Labour and Social Affairs 2016c). 169
Policy Options
---» The key to viable self-employ-
ment is fees people can live on.
29 Apr. 2015 via arbeitenviernull.de
---» In terms of labour law, we see
no need for legislators to take action. The
existing statutory framework is suffi-
cient to cover this new development.
German Retail Federation (HDE)
---» The platform economy and “on
demand economy” require an extremely
high level of one-way flexibility from
workers (...). This also applies to new
forms of work which are moving in the
direction of self employment.
German Trade Union Confederation (DGB)
170
An important prerequisite for social protection is an adequate income.
« Small business owners with little bargaining power, especially self-
employed contract workers, can often do little to counter the pressure
clients place on their pay. In addition, the statutory minimum wage
does not apply to them. They are at risk of ending up in a race to the
bottom, which can be fuelled by the high level of price transparency on
digital platforms. In some cases they are also competing against com-
panies which offer similar services, while working with employees in
jobs with compulsory social insurance coverage. Public fee scales only
exist for a small number of occupations. « workers are not subject to instructions when performing work and can
A contentious debate is taking place about the pay and working con-
« ditions offered by new forms of work for which digital platforms act as
intermediaries (→ Chapter 2.2). As well as platforms for highly quali-
fied skilled workers , there are platforms which act as intermediaries
for simple micro-tasks or physical services on demand. The partly over-
lapping, partly conflicting interests of workers and consumers regard-
ing digital platforms were also discussed during the consultation pro-
cess. 194 The focus was on the lack of transparency regarding working
and pay conditions, particularly in light of recent developments in the
field of crowdworking . Further criticisms include unfair contractual
conditions, such as payment only for those who win a competition, and
the possibility for a piece of work to be rejected by the platform oper-
ator without any reason being given. « seems that the question of whether this criterion is met has to be
« Whether or not platform workers are carrying out a self-employed
activity can only be determined on a case-by-case basis. The key factors
are the design of the legal relationship and the way in which the work
is actually performed. As most platforms define the legal relationship
in their terms and conditions as self-employment, it is potentially a
question of uncovering pseudo self-employment . The individual cases
need to be decided upon by the competent courts or relevant adminis-
trative procedures, such as the pension insurance system’s status deter-
mination procedure. In principle, it is the task of legislators to expand
194 As part of the consultation process, a symposium on “Service Platforms from the Perspective of
Workers and Consumers: how can we achieve socially just and consumer-friendly standards?”
was held jointly by the Federal Ministry of Justice and Consumer Protection and the Federal
Ministry of Labour and Social Affairs on 20 September 2016, see www.bmas.de/DE/Presse/Mel-
dungen/2016/symposium-dienstleistungsplattformen-internet.html.
Policy Options
the coverage of social security and labour laws if existing civil-law ---» It is impossible to give a general
standards are inadequate to ensure the protection of self-employed answer to the question of whether the
forms of work. » service providers who use such platforms
are genuinely self-employed, or whether
A controversial debate about how crowdworking should be legally in certain circumstances pseudo self-
classified is taking place amongst legal scholars. Most voices in the employment can be assumed; an
debate believe that crowdworkers are not employees in most cases, answer can only be reached on a
due to the lack of personal dependence, which is the constitutive char- case-by-case basis. «
acteristic of all wage and salary employment: they argue that crowd- Conference of the Labour and
Social Affairs Ministers of the Länder
freely choose whether or not to take on an assignment.
However, technical parameters and performance specifications can
make explicit work-related instructions all but superfluous, as they
have already been implicitly issued via the framework defined for the
assignment. If time specifications also apply and continuous monitor-
ing takes place, for example via screenshots or the logging of work pro-
cesses, or if customers rate the services performed, the criterion of
personal dependence can potentially be met after all. Personal depend-
ence is also the essential criterion in determining whether an indi-
vidual should be classified as an employee under social insurance law.
Indications of personal dependence include the individual acting on
instructions and being integrated into an external work organisation. It
examined on a case-by-case basis for platform-based activities and
crowdworking .
SHAPING THE WAY AHEAD
Business founders and self-employed persons take personal risks, not
just for themselves, but often also for the public good. They should
therefore be supported. This includes the provision of qualified coun-
selling. However, support for business start-ups is primarily a matter
for economic policy. 195 Where aspects relating to labour market and
social policy come into play, they should take into account the eco-
195 See Federal Ministry for Economic Affairs and Energy (BMWi) 2016; Keese 2016. 171
Policy Options
---» As a freelancer in IT, I’m in
favour of compulsory social insurance
coverage for ALL. Then there would be
no more need for a law on pseudo self-
employment and EVERYONE would at
least receive the statutory pension.
24 Apr. 2015 via arbeitenviernull.de
172
nomic realities for self-employed individuals. Labour market policy can
help people to move from unemployment to self-employment. A range
of instruments are available for this purpose in Books II and III of the
Social Code (Sozialgesetzbuch), including the start-up grant, new busi-
ness support, loans and grants for equipment, and funding for advisory
services. These measures could be supplemented by a Personal Activity
Account (→ Chapter 4.8).
The question of whether, in the case of pseudo self-employment ,
an individual actually has the status of an employee and thus enjoys
the full protection of labour and social law can be clarified in individu-
al cases by legal proceedings and administrative procedures such as the
status determination procedure.
The fields of work for creatives are developing with particular speed
and dynamism. In practice, this can make it difficult to make the necessary
distinction between dependent employment and self-employment. As
a frame of reference, the existing classification criteria lists could be
updated and further developed in consultation with the relevant actors,
such as the Artists’ Social Fund and the social insurance agencies.
Since 2006, business founders have had the option of voluntarily retain-
ing unemployment insurance coverage if they have already been insured
for a certain period of time. This is primarily intended to provide a social
safety net for the difficult initial phase of starting a business.
In view of the problems which have emerged regarding provision for
old age, it appears appropriate to require self-employed individuals to
make provision for old age, as is the case for employees. In other Euro-
pean countries, this has long been a matter of course. The aim is to close
existing gaps in coverage, reduce incentives for the crowding out of
employment, and avoid basic income support benefits being claimed
due to inadequate provision for old age. The appropriate way to achieve
« this is to include self-employed individuals in the statutory pension
insurance system, as this offers the following advantages: « the same technology.
• It will put an end to contribution histories in which contribution
periods in the statutory pension insurance system are interrupted by
periods of self-employment. Self-employed individuals will, like
employees, receive a secure pension from a single provider.
Policy Options
• The statutory pension insurance system goes beyond simple provi-
sion for old age and encompasses benefits to facilitate participation,
reduced earning capacity pensions and surviving dependants’ pensions,
which are often not offered by personal and occupational pension
schemes.
Including self-employed individuals in the community of solidarity of
the statutory pension insurance system would give them the same
rights and obligations as all other insured persons. At the same time,
special regulations for some groups are appropriate, particularly in order
to protect existing self-employed persons’ confidence in the decisions
they have taken regarding provision for old age. The statutory pension
insurance obligation should therefore apply primarily to younger people
who enter self-employment after the obligation enters into force.
There should also be greater scope to reduce contributions while set-
ting up a new business and in periods with low earnings. In addition,
those who are already covered by an obligatory system should be entitled
to receive an exemption from the obligation of coverage by the statutory
pension insurance system. This applies to farmers and freelancers who
are covered by professional retirement schemes, such as lawyers.
By contrast, an old-age security scheme for self-employed individuals
with low incomes modelled on the artists’ social insurance system, with
contributions coming from self-employed persons themselves as well
as clients and the state, does not appear to be an adequate solution.
Unnecessary bureaucracy holds entrepreneurs back. In particular, the
notification and contribution procedures in the social insurance system
are often felt to be complicated and time-consuming. Bureaucracy has
generally been slashed in the social insurance system’s contribution
payment and notification procedures in recent years, which have been
adapted to allow data to be transmitted electronically. The Ministry
intends to establish an electronic notification process for compulsorily or
voluntarily insured self-employed persons in the future as well, using
The introduction of an obligation to make provision for old age must
go hand in hand with a review of the non-income-related minimum
contributions for self-employed persons in the statutory health insur-
ance system. The relatively high contributions burden for those who
173
Policy Options
have low incomes or are in the process of setting up a new business is one
cause of the high level of contribution arrears in the statutory health
insurance system in relation to this group. If all self-employed individuals
are made subject to an additional obligation to make provision for old age,
the contributions burden could play a part in causing financial overstretch.
To improve the income situation, there have been some calls for
statutory fee scales for self-employed persons. Such approaches could
be problematic in terms of European law. The European Commission
takes the view that they could violate the Services Directive. Remuner-
ation regulations can also be problematic due to infringements of Euro-
pean competition and antitrust legislation.
The economic and social situation of certain self-employed persons
can, however, also be improved by means of collective agreements:
under Section 12a of the Collective Agreements Act (Tarifvertrags-
gesetz), it is already possible today for trade unions or professional
associations which are authorised to engage in collective bargaining,
for example, to conclude collective agreements for self-employed indi-
viduals, provided that these individuals are economically dependent
and have a need for social protection comparable to that of an employee,
and are thus considered employee-like persons. Collective agreements
of this kind can, in addition to pay levels, cover issues such as entitlement
to fringe benefits, benefits in the event of incapacity for work, or holiday
entitlement. This enables terms and conditions of employment to be
negotiated which reflect the specific nature of the sector in question. It is
up to the collective bargaining parties whether and in what way they
use this possibility of concluding collective agreements.196 As a first step,
the Federal Ministry of Labour and Social Affairs will do more to inform
self-employed individuals about the possibilities which collective
agreements can offer them. Additionally, in the light of new business
models which exist in the grey area between self-employment and employ-
ment, it is essential to closely monitor whether the concept of “employee-
like persons” still provides the intended protection, whether it needs to
196 At present, the register of collective agreements contains 44 collective agreements with provisions
for employee-like persons. In 40 cases, these are “company agreements” in the radio and televi-
sion sector. Just four other collective agreements are traditional collective agreements for an indus-
try sector, in the graphic design sector (Framework and Collective Remuneration Agreement for
Design) and the sector of newspaper publishers (Framework and Collective Wage Agreement).
174 This suggests that this instrument is underused by self-employed persons and their organisations.
Policy Options
be adjusted, or whether new instruments are needed to give workers on
the borderline between employment and self-employment better
means of collectively negotiating their working conditions and incomes.
At present, representative surveys in Germany offer no indication of
a significant increase in self-employed activities in the platform economy.
Although experts assume that there will be a rise in platform-based
services in the coming years, the available data calls for a degree of
caution. The Federal Ministry of Labour and Social Affairs is seeking to
improve the available data on platform work. Empirical data on
crowdworking and other types of platform activities undertaken as a ---» It may be useful to carry out
main or secondary activity will form part of a regular reporting on an empirical study of crowdworking,
structural changes in the world of work (→ Chapter 5). If a rise in these creating an objective foundation for
forms of work becomes apparent, new protection strategies would debate. «
have to be developed, tailored in particular to employee-like self- Confederation of German
employed workers. » Employers’ Associations (BDA)
A protective framework targeted at a specific group has been created in
the past, in the form of the Home Work Act (Heimarbeitsgesetz), which
provides for special regulations such as pay regulations and holiday allow-
ances. A similar approach could be considered for platform workers or
certain types of crowdwork if new, precarious forms of work gain a foot-
hold in the German labour market due to an expanding platform economy.
With regard to boosting good working conditions in the digital plat-
form economy, it has been shown that the connection between good
working conditions and the delivery of high-quality services should be
highlighted (→ Chapter 4.3).
175
Policy Options Policy Options

SUMMARY 4.8 THE WELFARE STATE:

• Supporting self-employment and start-ups is an important task for
economic policy in Germany. Labour market and social policies can
provide flanking support for setting up businesses.
• Solo self-employment has not risen further in recent years. Whether
digitalisation will bring a new increase remains to be seen. Yet the line
between employment and self-employment is blurring; this will be
even truer in the digital world of work. In some cases, self-employment
is a limited period in an individual’s work history, or is carried out as a
secondary activity. For all persons in work, including self-employed indi-
viduals, gaps in social protection should be avoided.
FUTURE PROSPECTS AND
EUROPEAN DIALOGUE
In a social market economy, a dialogue about the future of work will
inevitably also look at the welfare state. The effects of digitalisation, glo-
balisation, and demographic and social change described in Chapter 1 are
not only challenges for the economy and the world of work. They also
raise questions regarding the welfare state, especially the social security
systems which are directly connected to dependent employment. A

• Against this background, it would be appropriate to include self-

employed individuals, in principle, in the statutory pension insurance
system. The associated costs must be assessed together with costs incurred
in other social insurance systems, especially statutory health insurance.
systematic analysis of these challenges would have been beyond the
scope of the Work 4.0 dialogue. Instead, social-policy proposals have
been formulated from the perspective of the world of work, primarily
as a response to the impacts of digitalisation. What has emerged are the
broad outlines of a vision of how to deal with fundamental challenges

• Self-employed individuals should be encouraged to jointly assert

their interests via collective bargaining structures. Greater use should be
for the welfare state of the future.

made of the existing legal possibilities, such as the option to conclude

collective agreements benefiting self-employed “employee-like” persons.
Steps are to be taken to improve the information available about this.

• Data collection regarding crowdworking as well as the prevalence of

platforms and the work carried out through them needs to be improved.

• As one-size-fits-all regulations do not meet the needs of all self-

employed individuals. Therefore, legislators should determine to what
extent specific types of workers are in need of protection and include
them in the protection afforded by labour and social law in line with
their specific situation. A conceivable option would be to regulate
crowdworking in a way which is based on the tried-and-tested, long-
standing regulations for home workers.

176 177
Policy Options
---» To ensure that digitalisation’s
opportunities benefit the whole of
German industry and its workers, as
well as jobs in Germany, we need a
viable social partnership and a
political framework which fosters
innovation, avoids bureaucratic
regulations and boosts
entrepreneurial freedom.
Daimler AG
---» There is already an adequate
level of social security in this
country for every individual. There is
no need for a further expansion.
That would only result in a more
bloated welfare state.
Bavarian Industry Association (VBW)
---» For years, ver.di has been
calling, together with the German
Trade Union Confederation, Social
Organisation Germany and other
partners, for social insurance for
employees to be expanded to create a
comprehensive social insurance scheme
covering all persons in work. We
reiterate this call, as it is taking on a
new urgency when it comes to
providing adequate social protection
for the new forms of work and
employment which are potentially
increasing as a result of digitalisation.
The entire labour force must be
included in the social insurance system.
Employers and clients (as well as
“intermediaries”) must bear an equal
share of the costs.
United Services Trade Union (ver.di)
178
Policy Options
ISSUES RAISED IN THE CONSULTATION PROCESS dom in the organisation of work. Against this background, new redistri- ---» It must be ensured that the
What emerges from the responses to the Green Paper on Work 4.0 , bution strategies are being discussed in almost all western countries. social security systems themselves do
besides a clear, shared commitment to the social market economy, is how not come under pressure. «
widely views differ on the functions of the welfare state. While some SHAPING THE WAY AHEAD German Association for Social Security Research
and Policy (GVG)
demand comprehensive protection from the uncertainties of digitalisa- The first challenge for the welfare state is securing its long-term
tion, others emphasise the individual’s personal responsibility and call financing. This concern is raised in many of the responses to the Green
for the welfare state to limit itself to safeguarding minimum standards. Paper. It is not a new concern, having been the crux of social-policy ---» If jobs with compulsory social
While some underline the value of their entrepreneurial or individual debates in Germany, for example about provision for old age, for many insurance coverage are replaced by new
« freedom, others demand comprehensive, state-organised solidarity. years, including in the context of demographic change. By way of solu- forms of work, the question is how to
While some refer to the primacy of negotiations between the social tion, there are calls on the one hand for the solidarity principle to be secure the revenues and financing basis
partners in protecting and enforcing social standards, others regard strengthened by including broader groups in the social insurance sys- of the social insurance systems. «
this primarily as a matter for the state. This is far from an exhaustive tems, while on the other hand greater tax financing for benefits is rec- Federal Employment Agency
list of the contradictory positions. Above all else, however, this shows ommended. Fiscal aspects could only be considered on the margins of
that the welfare state is a dynamic system in which society’s funda- the Work 4.0 dialogue, but a series of proposals to this effect, concen- ---» The whole social insurance
mental focus is debated, and that it must constantly re-establish its trating on digitalisation, are being discussed in the international debate. system should be re-focused on a single,
worth, re-adjust and re-invent itself. « They offer different strategies for the taxation of the digital economy: solidarity-based system. Both for
« from a taxation of digital companies which focuses on data flows, for pensions and for health and accident
Internationally, the future of the welfare state is being debated in example, to a change in the distribution or calculation of social insurance insurance, everyone should pay into a
more fundamental terms than in Germany. This is due to the view, held contributions to reduce the burden on labour as a factor of production, for single system, with additional personal
primarily in the Anglo-Saxon countries but also advanced in Germany, example by using a value-added-based system to calculate employers’ forms of provision only being made by
that digitalisation will result in massive job losses.197 Although there is contributions . Another widely discussed approach is to change owner-
199
those who also want additional special
no evidence of this in Germany to date (→ Chapter 2.1), the fundamental ship structures in the digital economy, with, for example, citizens becoming benefits. Other European countries
discussion sparked by this hypothesis also has implications for German owners of their data and being paid for its use, or workers becoming (e.g. Austria) have never moved so
social policy. For the fear that an army of “digital labourers” might give shareholders in companies as part of an employee (equity) participation far away from the system of a commu-
rise to a new “social question” is merging with an international debate scheme. 200 Social policy will continue to grapple with these debates for nity of solidarity. «
about the risks of excessive, and thus socially and economically dysfunc- years to come. » Bremen Chamber of Labour
tional, social inequality. 198 Digitalisation, it is feared, could exacerbate
existing divisions in societies and further reinforce inequality dynamics. The second challenge is ensuring that the benefits provided by the ---» The value of unpaid and
Key issues in this area include growing inequality in the distribution of welfare state are fit for the future. One particularly influential idea in voluntary work should, in our view,
wealth, income divergence, the loss of jobs with compulsory social insur- the international debate is that of an “unconditional basic income ”, lead to higher pensions and lower
ance coverage, the rise in precarious employment, the spread of poverty which has also been discussed in Germany for years and is gaining new taxes. Benefits relating to this, for
risks and the inadequate social protection offered by the welfare state for support in the face of digitalisation. The idea of a kind of basic income example in statutory health, pension
some groups. A new divide could also emerge if only elites were to bene- can already be found in Thomas More’s Utopia, published exactly 500 and unemployment insurance, should
fit from the advantages of digitalisation, such as greater personal free- years ago, in which it is seen as a way of making theft unnecessary. The therefore be tax-financed. «
Social Insurance System Trade Union –
Women’s Representation
«
197 Ford 2015; Brynjolfsson/McAfee 2012; 2014.
198 The links between inequality and growth – including and in particular with reference to OECD
and IMF publications – are discussed in the draft of the Federal Government’s Fifth Report on
Poverty and Wealth, which was adopted in April 2017; see Atkinson 2016, Piketty 2013, 2015 and
Stiglitz 2015 and, regarding the discussion in Germany, Fratzscher 2016 and Mau/Schöneck 2015. 199 Bach et al. (2016).
200 Freeman 2015. 179
Policy Options
---» In view of the productivity
leaps which are expected as a result
of progressive digitalisation and
automation, we must also ask how
workers can benefit from this. « would mean moving away from the idea of a working society and accept-
Bremen Chamber of Labour
180
liberal-economic variant was formulated by Milton Friedman in 1962
with his concept of a “negative income tax”: he proposed that all social
benefits should be replaced by a single sum paid by the state. 201 The
various supporters of a basic income hope that it would result in a lean
state which would free people from their dependence on both gainful
employment and social security administrations. They thus release the
state from its responsibility to give individuals access to work and, in
the event of unemployment, to offer them support and assistance in a
spirit of solidarity.
There was no active discussion about a basic income in the Work 4.0
dialogue, in part because the Federal Ministry of Labour and Social
Affairs believes there is no need, or support within society, for such a
fundamental change of system. The introduction of a basic income
ing the risk of a new divide between those who have work, and can
therefore have a much higher income than the basic income , and those
who are voluntarily or involuntarily dependent on the basic income –
without entitlement to state support in their efforts to gain access to work.
Rather than the ideal held by many advocates of the basic income , i.e.
expanding the concept of work beyond gainful employment and creating
an inclusive working society for all on the basis of a basic income , the
result could be the opposite: an exclusive labour market for the privi-
leged. Should automation and artificial intelligence result in work
becoming more efficient and thus a reduction in the work available,
there would still be other solutions for sharing the dividends of digital-
isation: for example, higher wages for fewer, more self-determined
working hours. « could conceivably come with an initial credit, which could be used for
If any theory has proven to be robust in recent years, it is that of the
path dependency of the development of the German welfare state.
Rather than a change of system, the welfare state needs to be carefully
evolved in a way which reflects the public’s needs. The extent to which
work and the welfare state must continue to complement each other in
future is visible in almost all of the policy areas discussed in this chapter,
whether the focus is on securing employment opportunities, participa-
tion in work or minimum wages (→ Chapter 4.1), safeguarding employ-
ability (→ Chapter 4.2), the welfare state’s social protection for a life-
phase approach to the organisation of working time (→ Chapter 4.3),
securing social rights in the context of co-determination and social
201 Friedman 1962.
Policy Options
partnership (→ Chapter 4.5), or social protection for new forms of work ---» Work is a factor in individual
(→ Chapter 4.6). The welfare state and its social security systems will social status and also an outlet for
need to take more of a life-phase approach in future and provide better individual creativity. For the Social
support for transitions. » Insurance System Trade Union, the
principle of the social state guaranteed
One instrument which could support a work-centric social policy by the German constitution is there-
which is focused on individual needs is the idea of a Personal Activity fore also the yardstick for the future of
Account, which would be set up for all individuals entering working life the working world. Work is tradition-
and would accompany them throughout their working lives. The idea ally also the foundation for our social
picks up on various academic proposals and builds on the French concept security systems. «
of a Personal Activation Account, which is to be introduced at the start of Social Insurance System Trade Union – Women’s
Representation
2017. Three main aims would be pursued via the Personal Activity Account:
Firstly, as it would be administered by a state service provider, it could ---» In view of the disparate nature of
help to make it easier to transfer employees’ entitlements if they developments, we may have to get used
change employer. Take long-term accounts , for example: the German to the idea of a future working world in
Pension Insurance already administers the credits in long-term accounts which labour markets contain employees,
under certain circumstances. Automatically setting up this kind of ac- freelancers, solo self-employed individuals,
count at the start of an individual’s working life could result in long- entrepreneurs and – even if no one wants
term accounts , currently rare, becoming much more widespread, includ- this – a certain number of precarious
ing amongst small businesses and low earners. Administration by a state workers, and in which it is no longer
service provider could also ensure that the credits are safely invested possible for a one-size-fits-all approach
and pay interest. to reflect their different wishes and needs.
Of course, the aim of facilitating “good
Secondly, the account could empower workers to shape their employ- work” for them all would remain in place,
ment biographies in a more autonomous manner by offering opportu- even in those circumstances, but the
nities which they could use as they see fit. For example, the account instruments for achieving it would be
much more differentiated. «
various clearly defined purposes over the course of an individual’s Federal Association of Human
Resources Managers (BPM)
working life: to fund, for example, continuing vocational education and
training not paid for by employers, the process of starting a business or
making the transition into self-employment, reductions in working
time or sabbaticals to raise children or care for a family member, or a
flexible transition into retirement.
Thirdly, the account could ensure greater social justice. It picks up on
the proposal made by various economists that, given the unequal dis-
tribution of inherited assets, a “social inheritance” should be intro-
duced: a one-off sum which the state would make available to all young
people, irrespective of their social background, which could only be
181
Policy Options
---» Gesamtmetall is opposed to the
various proposals for macroeconomic
stabilisation mechanisms in the form of
a European Unemployment Insurance
scheme. Not only is the effectiveness of
automatic stabilisers generally overesti-
mated; their countercyclical function is
also more than questionable. (...) The
introduction of a European Unemploy-
ment Insurance scheme, supposedly in
an attempt to solve the problem via
macroeconomic stabilisers, would create
inappropriate incentives (...). Urgently
needed reforms in individual Member
States would be impeded. « integration. Social policy is primarily organised at national level. In
Gesamtmetall – Federation of
German Employers’ Associations in the Metal
and Electrical Engineering Industries
---» The Federal Employment
Agency’s Board of Governors is
opposed to a European
unemployment insurance scheme for
legal, social, distribution-policy
and economic reasons. « which would be paid Europe-wide. In Germany, the idea met with uni-
Federal Employment Agency
---» Each country is responsible
for the consequences of its
labour-market policy. « matter for the Member States, in line with established European practice.
German Retail Federation (HDE)
---» Solidarity within the EU is
necessary, but national insurance
systems which have a limited pool of
contributors and already many
national gaps in protection are not a
suitable means of tackling economic
crises EU-wide. «
German Trade Union Confederation (DGB)
182
used for specific purposes. This would contribute to distributive justice
and intergenerational equity. The amount could potentially be set on a
sliding scale: for example, those who have not benefited from tax-financed
higher education could receive a higher initial capital. Limiting the account
to new workers would also reflect the fact that younger people have to
bear a higher demographic burden.
The concept of a worker’s account outlined here could be modified in
many respects. For example, sub-accounts could also be established
for specific purposes, with different conditions of use applying. The
accounts could also be used by the social partners to reach specific
agreements.
The third challenge for the welfare state can be found in European
view of the EU’s economic and legitimacy crises, however, a recurring
debate is taking place about whether the EU needs to become more
tangible for EU citizens, and in particular to become “more social”, and
if so, how. One example of this is the initiative launched by former EU
Commissioner László Andor, who proposed that a European unemploy-
ment insurance scheme should be established. His proposal aimed to
supplement the existing national social security systems with an addi-
tional transfer benefit, financed using Member States’ tax revenues,
versal opposition: in a rare display of unity, the responses to the Green
Paper on Work 4.0 reject the suggestion of a European unemploy-
ment insurance scheme, albeit for varying reasons. « and establishing better minimum standards for the organisation of labour
Policy Options
Nonetheless, in the context of the European Monetary Union’s mac- ---» A European fiscal capacity
roeconomic stability, there is a need for instruments beyond the ECB’s could be considered, in the dbb’s view,
monetary policy – which is uniform for all countries – even if a European subject to certain conditions. It would
unemployment insurance scheme is unlikelyto be the instrument of have to be defined as a specific-purpose
choice. The preparation of the multi-annual financial framework for 2021 European fund which is based on
to 2027 would seem to be a suitable forum in which to discuss a reform additional EU revenues (...). The dbb is
of financing flows at European level. For the sake of the future of European open to a careful examination of the
integration, the EU must win back trust and demonstrate and use its possibility of a European instrument
ability to deliver on key issues: Community solutions are needed in modelled on the European Globalisation
economic, security and defence policy. In addition, a social agenda is Adjustment Fund which, in line with the
needed which places social cohesion centre stage and tackles the causes existing use of structural funds, provides
of poverty-driven migration within Europe. » European assistance in special social
crises and thus also has a stabilising
The question of what “Gute Arbeit” looks like in the digital world effect on national labour markets. «
should be discussed not just at national level but at European level as dbb – German Civil Service Federation
well. The EU’s Digital Agenda considers the issue primarily with regard
to initial and continuing training, with the aim of actively securing the ---» In the dbb’s view, key factors in
supply of skilled labour. However, the approach should – like the con- achieving an employment-intensive
sultation process in Germany – be wider and take into consideration world of Work 4.0 which preserves the
the various dimensions of decent digital work. welfare state in Europe include a deep-
er economic union, better coordination
A joint approach by the Member States could initially consist of for- of economic policies, and joint reform
mulating minimum standards for workers which apply Europe-wide, efforts by the EU countries. «
without placing too great a burden on individual Member States. For dbb – German Civil Service Federation
example, this could involve European legal frameworks for setting natio-
nal minimum wages, designing national basic social security systems,
mobility within Europe. Designing these legal frameworks must be a
At the same time, the legal framework for the coordination of social
security systems would have to be revised to protect the Member States
from unjustified social benefit claims. In addition, the Posting of Workers
Directive, which has not been changed in twenty years, should be revised
to protect workers posted across national borders.
183
Policy Options
The consequences of digitalisation in the field of health and safety at
work could also be discussed at European level. A dialogue about Work 4.0
could take place not only in the framework of the Digital Agenda, but
also in the context of the discussion about the European Commission’s
proposal for the establishment of a European Pillar of Social Rights. 202
With this Pillar, the European Commission wishes to respond to the
challenges relating to employment and social cohesion in the EU
caused by the financial and economic crisis. At the same time, the Pillar,
like the consultation process Work 4.0 , is based on the fundamental
idea that the world of work will be transformed by current and future
megatrends, especially the digitalisation of society and the economy.
The Pillar is intended to become a stand-alone reference document con-
taining principles on the support for well-functioning, fair labour markets
and social security systems. This approach provides an opportunity to
pragmatically engage in an urgently needed debate about the level at which
the European Union’s social dimension should be organised. Regarding
the governance impetus to be developed, it must be ensured that tradi-
tional national structures are respected, such as the collective bargaining
and staff representation systems in Germany.
Many experts believe that the project of European integration is cur-
rently experiencing one of the most difficult phases in its history:203 a
great deal of energy will need to be devoted to the consequences of
Brexit, while at the same time it is necessary to address the eurozone crisis
and its consequences, aid for millions of refugees, and security threats.
Against this background, a broad consensus in society is needed, includ-
ing in Germany, about what kind of Europe we want and what we are
willing to do to achieve it. This also means that labour and social policy
must not be discussed solely in the national framework; a shared Euro-
pean level must be found. Work 4.0 can become a joint project for the
future, not just in Germany but at European level as well: because it
promises progress which benefits everyone.
202 European Commission 2016.
184 203 See Enderlein et al. 2016
Policy Options
SUMMARY
• The key challenge for the welfare state in the era of digitalisation
is to find stable, viable solutions which are compatible with the social
market economy and, at the same time, allow an adequate level of collec-
tive social protection for the population.
• An important dimension of this challenge is securing the long-term
financing of the welfare state. The disparate trends in market incomes and
assets, including in connection with digitalisation, will make it necessary
for the tax and social security contributions system to evolve. Sufficient
funding must be obtained for the welfare system to provide a socially
viable level of benefits. This is the prerequisite for minimising inequality.
• A major aim in further developing the welfare state’s institutions is to
stabilise employability over the life course and support transitions. The
concept of a Personal Activity Account would see young workers being
given an initial capital, as a form of “social inheritance”, which could be
used for skills development, starting a business, or career breaks for
personal reasons. It could also be managed as a long-term account into
which individuals could make their own payments.
• Matters relating to the welfare state can only be meaningfully
developed further if the European context is taken into account. This is
especially true of the consequences resulting from digitalisation. The
Work 4.0 dialogue should therefore also take place at European level –
both in the framework of the EU’s Digital Agenda and as part of the
discussion on establishing a European Pillar of Social Rights, which is
ushering in a fundamental process of reflection on the European Union’s
social dimension. Public support for the EU could be boosted by, among
other things, a fundamental consensus on minimum standards of social
protection, which could also reduce poverty-driven migration within
Europe. A successful digital transformation which contributes both to
greater prosperity and better working conditions within the EU could
become a forward-looking project for the EU and its citizens which
inspires a sense of community and identity.
185
RE-IMAGINING WORK:
IDENTIFYING TRENDS, TESTING
INNOVATIONS, STRENGTHENING
THE SOCIAL PARTNERSHIP

5

5. RE-IMAGINING WORK:
IDENTIFYING TRENDS,
TESTING INNOVATIONS,
STRENGTHENING SOCIAL PARTNERSHIP
The publication of this White Paper does not of course mark the end
of the digital transformation, nor the debate around Work 4.0 . It will
continue over the coming years – true to the motto of this dialogue
process: “Re-imagining work”. Some sensational predictions may end
up being moderated, and new questions will be posed.
The consultation process has made clear that it would be a mistake
to react hastily to early developments. However, it would be equally
wrong to wait until potentially problematic changes have become
established and the repercussions for the labour market have to be
corrected retrospectively via social policy – potentially at a high cost.
Instead, it is worth continuing along the path established by this
consultation process: observing trends, seeking dialogue within soci-
ety, taking a measured approach in terms of political action, and – wher-
ever possible – pursuing the route of social compromise, with the in-
volvement of the social partners and other labour-market stakeholders.
The trend towards a digitalised world of work will continue in the
coming years. Clearer answers will emerge with respect to many cur-
rent questions: has the German economy managed to hold its own in
the face of international competition? Has Industry 4.0 become
standard in most companies – at least in industrial value chains and
networks? Have companies seen an erosion of their physical bounda-
ries and become more “virtual”? What jobs have in fact been replaced
by robots and artificial intelligence , and in what areas will human
minds and hands remain essential, even in the future? Where has new
work been created? Has cloud-based and crowd-based work become
the reality for many?
The present transformation process will not be conflict-free. The
challenges and tensions set out in this White Paper – such as what de-
188
Re-imagining Work
gree of work-related flexibility is desirable and necessary; the potential
conflict between automation and securing employment; the repercus-
sions of new business models, often based on Big Data , as well as new
forms of work – these are shaped by diverse values and interests. If the
transformation process is to lead to the greatest possible prosperity for
society and its benefits be shared amongst as many individuals as pos-
sible, it will have to be continuously negotiated in many areas, and new
social compromises will have to be found. This will only be possible if
state action, social partnership, cooperation between employers and
works councils, and the concrete reality for companies and organisa-
tions are considered holistically and function as a whole. With the aim
of making the vision of decent work and quality jobs as outlined in
Chapter 3 a reality, we are setting out four key principles:
Firstly: we want to be an innovative, learning society, in which we
must also take new risks. Where individuals are confronted with new
risks, new safeguards must be created. Not everything which is new
and possible is necessarily good. But without developing further, our
society would stagnate and our economy would lose its international
competitiveness. Particularly with regard to the digital economy, we
must find a way to combine innovation with the principles of the social
market economy . There is justified scepticism about whether some
business models; new, insecure forms of work; or approaches to data
which have, for example, been observed in the United States are the
right approach for Germany. We should focus on a German model, or
better yet a European model, for a strong digital economy and labour
market.
Secondly: work and the welfare state must always be considered to-
gether. In this context, the welfare state is facing the challenge of tak-
ing the entire life course of citizens into account, in particular focusing
189
Re-imagining Work
its social security systems to a greater extent on supporting people in
the transitions between different life phases; ensuring that preventa-
tive and follow-up measures are dovetailed in a useful way; and sup-
porting the social partners, workers and companies in reaching sensible
flexible working arrangements by providing a high-quality, well-con-
nected social infrastructure. The welfare state and labour legislation
will continue to guarantee fundamental social rights and statutory pro-
tection for all employees. Where appropriate, these must be expanded,
for example around lifelong vocational education and training, which
we have proposed here. Further, we need to examine whether and to
what extent those rights and obligations which have so far only applied
to salaried employees should also apply to new forms of self-employ-
ment, which require greater levels of social and legal protection. Look-
ing to the future, it must be clarified whether, in the light of the digital
economy, new approaches to financing the welfare state and public
goods should be considered.
Thirdly: despite all modern developments, collective bargaining
autonomy and co-determination will remain important institutions
in the digital economy, enabling tailored solutions and flexible
compromises to be negotiated. The state can and will leave space for
negotiated solutions. Conversely, however, it is also the case that in
areas where the social partners are not – or no longer – capable of
solving problems alone, the state will have to step in – as with the
recent introduction of the minimum wage.
Fourthly: all rules and principles, whether established by the state or
via collective bargaining, must also be accepted and put into practice
by companies and organisations. Corporate culture as it is lived in prac-
tice – from communication and management practices, to forms of
employment, to human resources management – is the crucial factor in
embedding real change. Objectives such as sovereignty over working
time , good occupational health, skills development and employee par-
ticipation can ultimately only be achieved if there is a workplace culture
which fosters self-management and mutual support, and which respects
jointly defined boundaries. Health is a precious asset and has a massive
influence on quality of life, performance capacity, innovative capabilities
and motivation. For this reason, physical and mental health, workers’
well-being and the resilience of the entire organisation are vital factors
in competitiveness. A good corporate culture on the one hand, and
190
Re-imagining Work
investment in employee-health and ongoing education and training on
the other, play a key part in the recruitment of skilled workers and
ultimately in overall economic productivity.
With this White Paper on Work 4.0 , we are documenting a broader
debate in society and presenting initial conclusions from our dialogue, in
the full knowledge that no definitive answers are yet possible. The trends
remain “under observation”, and we should experiment with new solu-
tions.
We need better data on how the world of work develops over the
coming years. The Federal Ministry of Labour and Social Affairs is
therefore proposing the introduction of regular new reporting on the
working world (Arbeitsweltberichterstattung), with the involvement of
academia and the social partners. This report should analyse the latest
research, supplement and bring together existing data sources in useful
ways and, where necessary, develop and apply new data sources. As a
“map of the world of work”, it should provide a cross-section of how
certain forms of employment, working times and issues relating to
quality of work are developing in individual sectors; and which social
groups are active in these forms of work.
The working world report should focus in particular on the extent to
which contentious issues, such as theories of task-automation, the po-
larisation of work, and the transformation of how work is organised,
are becoming a reality. In addition, the report should offer a longitudi-
nal analysis of the life-course of workers, and provide information
about where barriers exist: particularly around professional develop-
ment opportunities, access to an adequate income, and sufficient pro-
vision for old age. This includes a differentiated analysis of standard
employment relationships and “non-standard employment”, especial-
ly from the perspective of whether individual types of employment of-
fer security and whether or not these forms of employment correspond
with individual preferences and needs. We want to engage in dialogue
with the academic community about whether we need new analytical
categories in this area. These reports on the working world should be
closely linked with the new monitoring of skilled labour referred to in
Chapter 4.1. Each report could conceivably also take an in-depth look
at a key issue.
191
Re-imagining Work
As an important prerequisite for new “flexibility compromises”, we
should examine further incentives and instruments with which we can
support social partnership, collective bargaining coverage and the
establishment of works councils. Rather than simply seeking to slow
the long-standing erosion of collective bargaining coverage and em-
ployee representation in the workplace, we should be endeavouring to
reverse the trend, without, of course, calling the principle of freedom of
association into question. The Federal Ministry of Labour and Social
Affairs has already started to design laws in such a way that they can
contribute to this – for example, the law to prevent the misuse of
contract- and temporary agency work, or the draft law to strengthen
occupational pensions. More widely, any new laws and initiatives put
forward by the Federal Government which have a bearing on the econo-
my or the labour market, should also be examined in the context of their
impact on social partnership and collective bargaining. There is no con-
tradiction between individual direct participation, as is currently being
piloted in some companies, and institutional co-determination . On the
contrary: the aim is to achieve a productive mix of statutory rights of
co-determination and direct opportunities for employee participation.
We want a phase of joint “learning in and from transformation” and
to experiment with new strategies. In the 1970s and 1980s, the Federal
Government monitored and responded to the changes taking place,
especially in industrial production, with its “Humanisation of the Work-
ing World” programme. This was followed by further programmes,
including today’s “Future of Work” research programme run by the
Federal Ministry of Education and Research. Additional research and
transfer projects are needed with regard to work in Industry 4.0 , but
also more widely. Work in the trade- and service-sectors, new digital
business models and self-employed forms of work must also be
included.
The changing needs of workers must also be taken into considera-
tion. Market and technological innovations must go hand in hand with
social innovation. One vital aspect of this is putting workable and
effective solutions into practice on the ground, within businesses.
192
Re-imagining Work
We need a new government-wide innovation, research and transfer
strategy “Work 4.0”. The Federal Government’s existing research fund-
ing and transfer capabilities should therefore be coordinated and ex-
panded if necessary. In order to disseminate knowledge and resources
to organisations, regional innovation and advice centres should be
funded to inform and advise businesses, works and staff councils about
technological and social innovations.
In consultation with the social partners, we should agree on topics
to be piloted – what we here have called ‘experimental spaces’ –
with the aim of implementing these across sectors and in organisations
with academic support. The results should also be discussed jointly
with the Federal Government, the social partners, academia and the
Länder. Such experimental spaces could, for example, look at:
• Changes in the law or derogation clauses, for example in relation to
flexibility in working time and location, and an examination of their
effects (→ Chapter 4.2);
• Pilot projects for strategic public funding , for example a nationwide
pilot project for offering further digital qualifications (→ Chapter 4.1)
or a regional trial of a ‘household services account’ (→ Chapter 4.3);
• The interaction between human beings, new technology and new
organisational and participatory strategies in organisations, especially
around innovative approaches to improving working conditions
(→ Chapter 4.4) and boosting employee participation (→ Chapter 4.6);
• New business models and organisational forms reflecting the princi-
ples of decent work, such as non-profit platforms which seek to promote
and spread the services of the sharing economy in the form of cooper-
ative or social investment projects (→ Chapter 4.3).
The institutional lead for driving these experimental spaces and for
the transfer of innovation is the existing New Quality of Work Initiative ,
organised around a system of social partnership.
193
Re-imagining Work Re-imagining Work

We need an intensive debate in order to reach a consensus in society

on the way forward for the welfare state and its social security systems.
To this end, there is a need for an open culture of political debate,
social-policy research, and suitable forums and formats within which
policy-makers, the social partners, academics and civil society can find
answers to the three main questions regarding the future of the welfare
state:

• How can the long-term funding of the welfare state and its social
insurance systems be secured even amidst the digital transformation of
the economy?

• How can a welfare state which takes an overarching life-course

approach be organised, what requirements must it meet, and how must
the social security systems be modified with this in mind? What role
could a Personal Worker’s Account play in this context?

• What could a vision of a social Europe look like which maintains

national competences for existing social security systems, but at the
same time taps into the potential for common European solutions
which are tangible for citizens?

We are confident, in light of the broad and serious discussion which

has taken place in the framework of the Work 4.0 dialogue, that these R E-
vital debates can make a real difference on the ground.
I M AGI N I NG
WOR K

194 195
ANNEX

GLOSSARY
BIBLIOGRAPHY
RESPONSES TO THE GREEN PAPER ON WORK 4.0
THE CONSULTATION PROCESS
ADVISORY GROUP
EXPERT DIALOGUE
WORKSHOPS
FUTURALE
IMPRINT
Annex
GLOSSARY
Algorithm
An algorithm is a procedure for solving
a mathematical problem. Implementing
algorithms in program code can enable
computers to calculate solutions to certain
problems, for example in the context of
processing Big Data to produce Smart
Data.
Artificial intelligence
Artificial intelligence is a subfield of
computer science. It seeks to develop
programs and machines which, in certain
subfields (e.g. image and speech recogni-
tion), have abilities which are associated
with human intelligence. These abilities
are based on “machine learning”, among
other things. Programs and machines
learn from the examples they are given
and derive general rules from large
quantities of unsorted data.
Assistance/tutoring systems
Digital assistance or tutoring systems
give users additional situation-specific
information about a process or a product –
via displays, mobile devices such as tablets
and smartphones, or data glasses – and
can be used to provide instructions, tech-
nical support or continuing training in the
working process. Intelligent assistance
systems “learn” from past interactions
with individual users. Outside of working
processes, digital assistance systems are
increasingly also being used to support
consumers.
Basic income
The term “basic income” – or often
“unconditional basic income” or “UBI” –
is a social-policy approach under which
all citizens, without distinction, without
means-testing and without being required
to do anything in return, receive a set
amount as a public transfer benefit on a
regular basis. There are a wide range of
198
proposals at national and international
level regarding the specifics of how such
a system could work.
Big Data
“Big Data” refers to the collection of
ever larger volumes of data, which can be
systematically analysed due to technical
advances in terms of processors and sen-
sor technology, but also in terms of analy-
sis methods (“Smart Data”).
Blended learning
Blended learning combines elements of
traditional, in person learning and ele-
ments of self-learning, using electronic
aids such as online tutorials (“e-learning”).
Boundaries between work
and private life
The use of modern information and
communication technologies is breaking
down the boundaries between work and
private life, with a new openness replacing
the structures previously imposed by the
company in terms of location, time and
organisation, in the form of fixed working
hours and workplaces and the staff’s
long-term attachment to the company.
Cloud technologies
Cloud technologies make it possible to
access centrally stored data relating to a
process from any location via the internet,
and to work with this data, including by
using supplied processing and analysis
software.
Co-determination
Germany’s co-determination laws ensure
that workers have a say both in working
conditions and in business planning and
decision-making. The two levels of institu-
tional co-determination are the workplace,
as the unit for the pursuit of work-related
objectives, and the company, as the organi-
sational entity with legal capacity for the
pursuit of business or non-material objec-
tives. Co determination and participation
at the workplace level refer primarily to
the works council’s influence on all mat-
ters affecting workers directly in the work-
place. The participatory rights are varied
and include, in particular, social, human
resources and business matters, such as
the introduction of short-time work or
overtime, the establishment of pay princi-
ples or piecework and premium bonuses,
the introduction of new technical systems
or work processes, and the development
of social compensation plans in the event
of the planned closure of a workplace or
other substantial changes at the workplace
level. Employees’ interests are represented
by the works council. Participatory rights
at company level concern business plan-
ning and decision-making. Corporate co-
determination takes place in companies’
supervisory boards.
Collective bargaining coverage
Under Section 3 of the Collective
Agreements Act (Tarifvertragsgesetz),
the members of the parties to a collective
agreement (trade unions, employers’ asso-
ciations) are bound by that collective
agreement. Employers which have con-
cluded a collective agreement directly (as a
party) are also bound by it. Parties remain
bound by the agreement until it ceases to
be in force (in other words, employers
continue to be bound by it even if they
leave the employers’ association, and it re-
mains binding until it expires or is termi-
nated, for example). “Collective bargaining
coverage” generally means the proportion
of employees whose employers are bound
by a collective agreement, out of all em-
ployees who fall within the scope of the
collective agreement in question.
Crowdworking
Crowdworking involves work, usually
broken down into smaller tasks, being
assigned to crowdworkers via digital
platforms. Work can be assigned either
to a company’s own employees (internal
crowdworking) or to third parties (external
crowdworking), who are often solo self-
employed persons working for many
customers worldwide.
Cyber-physical systems
These are systems consisting of intercon-
nected devices, machines and movable
objects, which are controlled using IT
and continuous data exchange. Devices
and objects are equipped with sensors
which constantly produce data about their
status, location, process progress and user
behaviour. These interconnected systems
enable automated and autonomous plan-
ning and management of manufacturing
and logistics processes.
Cyber security
Cyber security deals with all aspects
of ICT security in cyberspace as a whole.
This encompasses all connected informa-
tion technology and includes all communi-
cation, applications, processes and
processed information based on it.
Data minimisation
The principle of data reduction and data
minimisation enshrined in Section 3a of the
Federal Data Protection Act (Bundesdaten-
schutzgesetz) stipulates that efforts must
be made from the outset, in the develop-
ment, selection and design of specific data
processes, to ensure that no personal data,
or as little as possible, is processed.
Democratic participation
The terms “democratic participation”
or the “democratic enterprise” refer to
staff involvement which goes beyond
co-determination, such as their involve-
ment in strategic developments or the
organisation of work.
Design thinking
Design thinking is an approach to team-
based creative problem-solving which is
characterised by a strong focus on the needs
of future users of the solution to be devel-
oped; it is an iterative and highly interdisci-
plinary approach. The term comes from the
fact that this approach is based on the meth-
ods used by (industrial) designers.
Digital literacy
Digital literacy refers to the knowledge
and skills required in the use of new tech-
nical devices and the associated informa-
tion and communication networks.
Digital transformation
The digital transformation is the sum of the
changes which may result from rapid and
widespread adoption of new information
and communication technologies in the
economy and in society. They all individual-
ly, and especially in combination, have the
potential to transform the way in which we
work and do business.
Employability
According to the Federal Institute for Occu-
pational Safety and Health, employability is
generally understood as the ability to par-
ticipate in working life. Individual employa-
bility depends on the requirements of the
working world, on the one hand, and the in-
dividual’s personal, specialist, social and
methodological skills, personal health and
ability to work, on the other.
Employee data protection
Legal provisions dealing with the collection,
processing and use of employees’ personal
data in the context of their employment are
summed up by the term “employee data
protection”.
Employment insurance
The term “employment insurance” means a
fundamental strengthening of the preventive
focus of unemployment insurance. The core
idea is to provide a safety net not only for
Annex
the income risks in the event that an individ-
ual becomes unemployed, but also for in-
come and employment risks connected with
work-related transitions and career breaks
over the life course, while at the same time
opening up opportunities for fresh starts and
professional advancement. Key elements of
employment insurance include a lifelong ad-
visory service, the establishment of a legal
entitlement to continuing vocational educa-
tion and training, and a working time policy
which supports transitions and periods of
skills development.
End of work
For over a century, people have been pre-
dicting the end of work due to productivity
gains from technological advances. While
entire sectors and occupations have some-
times vanished, new business models and
occupational profiles emerged at the same
time. It is therefore more a question of
changes and shifts in the labour market.
European General Data
Protection Regulation
The General Data Protection Regulation
adopted by the European Parliament on
14 April 2016 after several years of negotia-
tions will apply from 25 May 2018, replac-
ing the EU Directive on the protection of
individuals with regard to the processing
of personal data and on the free movement
of such data, which dates from 1995. The
new Regulation aims to harmonise data
protection standards and rules in Europe.
It applies directly in all Member States, i.e.
without further national implementing acts
being required. National legislators have
until 25 May 2018 to align existing national
provisions with the Regulation. With regard
to employee data protection, it contains an
“opening clause” which allows the Member
States to introduce provisions in specific
areas.
Experimental spaces
Experimental spaces are an instrument to
promote innovative and tailored solutions
199
Annex
for workers and companies which can
win support from all sides, based on
agreements between the social partners.
In experimental spaces, the social partners
can try out approaches to contentious is-
sues relating to the organisation of work in
practice for a limited period of time, with
an open mind as to the outcome and with
academic evaluation of the results. These
approaches can take place within the statu-
tory framework. However, legal changes
(“opening clauses”) for a fixed period of
time may also be necessary. Experimental
spaces can be used to try out new working
time models, approaches to how people
interact with new technology and new or-
ganisational and participatory strategies in
organisations, and new business models
and organisational forms, for example.
Family working time model
The family working-time model is
designed to allow couples to share
work and family commitments in a spirit
of partnership. Both engage in paid em-
ployment with a substantial number of
weekly working hours (e.g. around 80-90
per cent of a full-time position) and share
family commitments. In this context, dif-
ferent models are also being discussed for
a public wage replacement benefit, which
would provide incentives for both parents,
as well as single parents, to engage in paid
employment within a specific weekly
working time corridor.
Generation Y
Generation Y refers to the demographic
cohort born between 1985 and 2000.
Members of Generation Y are believed
to place much more value than older
generations on the meaningfulness of
their work and on a work-life balance.
Gig economy
In the gig economy, services are offered
via online intermediary platforms. Each
instance in which these services are
provided is an individual “gig” for the
200
provider, a “one-off” assignment or job
arranged via a digital intermediary. The
provider is not hired for a permanent
position. The platform operators assume
in their terms and conditions that the
service providers are self-employed.
Green Paper
A Green Paper is a (normally in-depth)
discussion paper on a specific topic or
group of topics which is intended to
launch a public and academic discussion.
A Green Paper summarises information,
defines problems, raises questions, and
sets out alternative courses of action for
debate. A Green Paper is often followed
by a White Paper outlining official meas-
ures and proposals – as an answer, so to
speak, to the questions raised in the Green
Paper. The Federal Ministry of Labour and
Social Affairs published the Green Paper
on Work 4.0 in April 2015, launching a
broad process of dialogue and discussion
on the future of work.
Humanisation of work
This term means that the world of work
should, as far as possible, be adapted to
the worker. It encompasses all measures
intended to enhance work content and
working conditions. Humanising the world
of work was the aim of various approaches –
especially in the 1970s and 1980s – to
designing working conditions at the work-
place level which were initiated or sup-
ported by the state, trade unions and the
academic community, particularly in the
framework of the “Humanisation of Work”
programme (1974–1989) launched by for-
mer Federal Research Minister Hans Matt-
höfer. The New Quality of Work Initiative
is continuing this tradition.
Industry 4.0
Industry 4.0 describes a revolution in the
manufacturing sector. At the heart of In-
dustry 4.0 is a highly automated and inter-
connected industrial production and
logistics chain. Virtual and real processes
merge on the basis of what are known as
cyber-physical systems. This permits highly
efficient and flexible production, with cus-
tomer wishes being taken into account in
real time, and allows a large number of
product variations to be produced.
Informational privacy
In German federal law, the right to infor-
mational privacy is the right for individuals
to control, in principle, the disclosure and
use of their personal data.
Internet of Things
Modern information technology makes it
possible for almost any object, whether
ordinary household items or machines in
factories, to be equipped with ubiquitous
computing power, controlled via software,
and connected with the rest of the world
and each other via the internet.
Knowledge society
In a knowledge society, knowledge and its
organisation are the foundation of society
and a vital economic resource which deter-
mines the competitiveness of economies to
a large degree. Work increasingly takes the
form of knowledge work and mental tasks.
Access to and sharing in knowledge via
education is a central social issue in this
context.
Life-phase approach
A life-phase approach to working time en-
ables employees to reduce their hours in
certain life phases, e.g. when starting a
family or undertaking continuing vocational
education or training, so they can better
balance the various demands on their time.
Long-term accounts
Long-term accounts – referred to in the law
as “credits” – enable employees to “save
up” portions of their pay or time worked in
order to later take time off work for longer,
socially insured periods. Credits can be used
flexibly to allow workers to take time off
for purposes defined in legislation, such as
care leave or parental leave, or for purposes
agreed with the employer – e.g. continuing
vocational education and training, a sabbati-
cal or the transition into retirement. They
thus enable individuals to shape their own
working lives. The legal provisions permit a
wide range of options. The specifics can be
agreed by employees and employers.
Low-wage sector
The low-wage sector is defined in terms
of the relative low-wage threshold. This
is generally defined as two-thirds of the
median hourly wage. In 2012, the national
low-wage threshold was 9.30 euros per
hour. 24.4 per cent of all workers were
active in the low-wage sector in 2013.
Migrant background
Individuals have a migrant background
if they or at least one of their parents
were not born with German nationality.
Specifically, this definition encompasses
immigrant and non-immigrant foreign
nationals, immigrant and non-immigrant
naturalised citizens, ethnic German re-
settlers, and the children of these groups
born with German nationality (definition
used by the Federal Statistical Office).
Mobile working
Mobile working refers to work outside
the workplace. It includes working from
home (telework, alternating telework),
working at customer locations (e.g. ser-
vices or sales), working on the go (e.g. in
planes and hotel rooms) and working
during business trips (e.g. trade fairs,
conferences).
Necessity (data protection)
The collection, processing and use of
personal data is only necessary if the
task in question cannot or cannot fully
be carried out without the data in
question. This criterion is also met if
the task could otherwise only be carried
out with disproportionate difficulty,
unreasonable effort or a delay.
New Quality of Work Initiative
(INQA)
The New Quality of Work Initiative is a
joint initiative by the Federation, the
Länder, the social partners, chambers,
the Federal Employment Agency, academia
and the business community, which advo-
cates an employee-focused corporate
culture and develops approaches to the
organisation of work which have a positive
influence on motivation, health and inno-
vation, going beyond the legal minimum
standards. It offers advisory and informa-
tion services, opportunities for dialogue,
and a programme to support new prac-
tice-oriented services for workers and
companies.
Non-standard employment
relationships
Non-standard forms of employment
include part-time work (under 20 hours
per week), marginal employment, fixed-
term employment and temporary work.
Part-time trap
The “part-time trap” refers to a situation
in which individuals find that, although
part-time employment reflected their
wishes at one phase in their lives, it
becomes a “trap” later in working life
as they want but are unable to increase
their working time. The term also refers
to disadvantages in working life which
are often associated with part-time
employment, such as lower chances of
professional advancement, lower levels
of participation in continuing vocational
education and training, or a lower inde-
pendent income and smaller pension.
Polarisation
When demand for mid-level qualificatio ns
declines relative to the demand for both
higher-level and lower-level qualifications,
for example as a result of technological
advances, this can result in wage or em-
ployment polarisation. This can lead to a
rise in wages at the top and bottom of the
Annex
wage distribution relative to those in the
middle, for example.
Proportionality (data protection)
The principle of proportionality means
that personal data must not be processed
or used any longer than required by the
specific permissible purpose for which it
was collected.
Prosumer
The terms “prosumer” and “prosumption”
describe the phenomenon of consumers
being directly involved in production pro-
cesses via digital media.
Pseudo self-employment
Pseudo or sham self-employment exists
when contracting parties describe a legal
relationship as self-employment, even
though the actual design and conduct
of the relationship constitutes wage and
salary employment, in legal terms.
Purpose limitation (data
protection)
The purpose limitation requirement in
the context of data protection is intended
to ensure that data is only processed for
the purpose for which it was collected.
The purpose is determined by the specific
task for which the data was collected. Data
may only be processed for a reason other
than the original purpose on a statutory
basis or with the consent of the individual
concerned.
Scrum
Scrum is an approach to managing team
projects which emerged in the IT industry
(software development) in the 1990s and
is increasingly also applied to project
development in other sectors. Scrum is
characterised by self-organising project
teams and regular reviews of interim
results, potentially followed by dynamic
adjustments to process planning.
201
Annex
Sharing economy
The basic idea of the sharing economy
is for resources which are not constantly
used by a single person to be temporarily
used by others, with online digital plat-
forms generally acting as intermediaries.
The term is closely linked to that of “col-
laborative consumption”. The European
Commission, for example, refers to the
“collaborative economy” in the context
of the sharing economy, and uses this
term for both non-profit and for-profit
models. In fact, there are many arguments
in support of reserving the term “sharing”
for non-profit examples.
Skilled workers
Individuals who have completed a voca-
tional training programme lasting a mini-
mum of two years are considered skilled
workers. These are people who have com-
pleted an apprenticeship or hold a techni-
cal college certificate, a degree from a
university or university of applied sciences,
or an equivalent qualification.
Smart Data
The data generated by billions of devices,
machines and systems in the Internet of
Things (Big Data) can be analysed, linked
and interpreted with the aid of intelligent
software. Data processed in this way is
called “Smart Data”, and forms the basis
for the development of smart services.
Smart Services
Increasingly, the line between service
providers and product manufacturers is
disappearing. Smart services are linked
to the sale of a product (or in some cases
render its sale superfluous, for example in
leasing/usage models) and offer comple-
mentary services related to the product,
especially services based on analysis of
usage data (e.g. intelligent predictive
maintenance of machines).
Social market economy
This term describes an economic system
202
which combines free participation for all
in an economy based on competition with
social equity and socially compatible pro-
gress in society.
Solo self-employed persons
Self-employed individuals who do not em-
ploy any staff are generally known as solo
self-employed persons.
Standard employment
relationship
The Federal Statistical Office defines a
standard employment relationship as a
permanent employment relationship in
which the individual works full-time or
part-time (at least 21 hours per week).
In addition, individuals in a standard em-
ployment relationship work directly in the
company with which they have a contract
of employment. This is not the case for
temporary workers, who are assigned by
their employer – the temporary agency –
to other companies.
Time sovereignty
In general, time sovereignty means that an
individual has control over how to use his
or her own time. In the narrower sense, it
refers to workers being able to determine
the length and scheduling of their work-
ing time.
Transaction costs
Transaction costs are costs which, rather
than being incurred in the production of
goods or services, arise in the use of mar-
ket processes to exchange them: informa-
tion costs, the costs of contract initiation,
conclusion and implementation, trans-
portation costs, etc. An essay by Ronald
Coase, who received the Nobel Prize
in economics, advanced the idea that it is
efficient for work or production processes
to be carried out within a company pro-
vided that the costs of obtaining a good or
service via the market, including the trans-
action costs involved, are higher than the
internal costs (taking into consideration
transaction costs within the company).
Transparency requirement (data
protection)
Every application which can be used on-
line must inform users about the process-
ing of their personal data and about the
data controller. Users can only exercise
their individual rights if they learn what
personal data is being collected and for
what purposes, what the data processing
structure looks like, how the data is pro-
cessed, and who the data controller is.
Trust-based working time
Trust-based working time is a model for
organising work in which employees carry
out their duties autonomously within an
agreed period of time. This system does
not involve formal time and attendance
recording in the workplace, or attendance
monitoring by supervisors. Employees can
set their own hours and often also choose
their working location. The work to be
performed is usually managed via target
agreements and a team- or project-based
approach to organising work. However,
the employer continues to have a respon-
sibility to ensure compliance with the
working time provisions in the law and in
collective agreements.
Value-added-based system
The financing of Germany’s social security
systems is primarily linked to labour, with
employers’ social security contributions
being calculated on the basis of gross
wages. In a value-added-based system,
employers’ social security contributions
are calculated on the basis of the compa-
ny’s value added.
Work 4.0
The term “Work 4.0” picks up on the cur-
rent discussion about the fourth industrial
revolution (Industry 4.0), but puts forms of
work and employment relationships centre
stage – not just in the industrial sector, but
in the entire
Annex
world of work. “Work 1.0” refers to the working time to be tailored to better re-
birth of the industrial society in the late flect employees’ individual needs.
18th century and the first workers’ organi-
sations. “Work 2.0” was the beginning of Work intensification
mass production and the birth of the wel- Work intensification describes an increase
fare state in the late 19th century. Industri- in the work which is, or has to be, carried
alisation led to new social problems; out in a specific period of time. It can be
growing pressure from organised labour caused by a rise in time and performance
was an important factor in the introduction pressure due to factors such as staff short-
of the first forms of social insurance in the ages, rationalisation, phases of high work-
German Empire. “Work 3.0” covers the peri- load in the company, or changed
od in which the welfare state and workers’ workflows. Work intensification does not
rights were consolidated on the basis of the necessarily lead to an increase in labour
social market economy. Employers and em- productivity.
ployees negotiated with each other on an
equal footing, as social partners. The need
for representation of common interests was
unquestioned in companies and among
workers. Later, some social rights were re-
voked, partly as a result of growing com-
petitive pressures and the opening of
national markets. “Work 4.0” will be more
interconnected, digital and flexible. It re-
mains to be seen exactly what the future
world of work will look like.
Working time choice
The term “working time choice” refers to
various approaches proposed in the public
debate. These range from the Working
Time Choice Act proposed by the German
Women Lawyers Association, to the intro-
duction of working time corridors, to the
use of “working time choice” as an over-
arching term for models allowing flexibility
in working time and location, such as flexi-
time and long-term accounts, alternating
telework or trust-based working time. The
Federal Ministry of Labour and Social Af-
fairs understands “working time choice” as
referring to entitlements, enshrined either
at the workplace level, in collective agree-
ments or as individual rights, for em-
ployees to have a say in the length and
scheduling of their working time and in
the choice of their working location, on
the basis of negotiated flexibility. Working
time choice is thus a guiding principle for
a range of measures which aim to allow
203
Annex Annex

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RESPONSES TO THE
GREEN PAPER ON WORK 4.0
More than 50 responses to the Green Paper on Work 4.0 were sub-
mitted by associations, public institutions and private individuals.
They are available online at www.arbeitenviernull.de.
» Allianz deutscher Designer (AGD) –
Alliance of German Designers
» Allianz SE – Works Council
» Arbeitgeberverband der Versicherungs-
» Bundesverband der Personalmanager
(BPM) – Federal Association of Human » Deutscher Industrie- und Handels-
unternehmen in Deutschland (AGV) –
Employers’ Association of Insurance
Companies in Germany
» Arbeitgeberverband Gesamtmetall e.V.
– Federation of German Employers’
Associations in the Metal and Electri-
cal Engineering Industries
» Arbeitnehmerkammer Bremen –
Bremen Chamber of Labour
» Arbeits- und Sozialministerkonferenz
(ASMK) – Conference of the Labour
and Social Affairs Ministers of the
Länder
» Arbeitsgemeinschaft der Personalräte
der obersten Bundesbehörden – Associ-
ation of Staff Councils of the Supreme
Federal Authorities
» Bundesagentur für Arbeit (BA) –
Federal Employment Agency
» Bundesarbeitgeberverband Chemie e.V.
(BAVC) – Federation of Chemical Em-
ployers’ Associations
» Association
Bundesärztekammer – German Medical
» Bundesverband der Arbeitsrechtler in
Unternehmen e.V. (BVAU) – Federal
Association of Labour Law Experts in
Businesses
» Bundesverband der Deutschen Indus-
trie e.V. (BDI) – Federation of German
Industries
214
» Bundesverband der Freien Berufe e.V.
(BFB) – Federal Association of Liberal
Professions
Resources Managers kammertag e.V. (DIHK) – Association
» Bundesverband E-Commerce und
Versandhandel Deutschland e.V. (bevh)
– German E-Commerce and Distance
Selling Trade Association
» Bundesverband Informations-
wirtschaft, Telekommunikation
und neue Medien e.V. (Bitkom) –
German Association for Information
Technology, Telecommunications and
New Media
» Bundesverband mittelständische
Wirtschaft, Unternehmerverband
Deutschlands e.V. (BVMW) – German
Confederation of Small and Medium
Sized Enterprises
» Bundesvereinigung der Deutschen
Arbeitgeberverbände (BDA) –
Confederation of German Employers’
Associations
» Daimler AG
» DB Dienstleistungen GmbH –
Divisional Works Council (DB)
» dbb Beamtenbund und Tarifunion
(dbb) – German Civil Service
Federation
» Deutsche Gesellschaft für Arbeits-
medizin und Umweltmedizin e.V.
(DGAUM) – German Society for Occu-
pational and Environmental Medicine
» Deutsche Gesetzliche Unfallver-
sicherung (DGUV) – German Statutory
Accident Insurance
» Deutscher Gewerkschaftsbund (DGB) –
German Trade Union Confederation
of German Chambers of Commerce
and Industry
» Deutscher Landkreistag – Association
of German Counties
» Deutscher
Städtetag – Association of
German Cities
» Die Führungskräfte e.V. (dFK) –
German Confederation of Managers
» Die jungen Unternehmer von Die Fami-
lienunternehmer e.V. – The Young En-
trepreneurs
» Die Linke – The Left Party, response
submitted by the Members of the Bun-
destag Klaus Ernst, Sabine Zimmer-
mann, Matthias W. Birkwald, Herbert
Behrens, Jutta Krellmann, Susanna
Karawanskij, Harald Weinberg, Azize
Tank*
» Eisenbahn- und Verkehrsgewerkschaft
(EVG) – Rail and Transport Union
» Evangelische Kirche in Deutschland
(EKD) – Evangelical Church in Germany
» Gesellschaft für Versicherungswissen-
schaft und -gestaltung e.V. (GVG) –
German Association for Social Security
Research and Policy
» Gewerkschaft der Sozialversicherung –
Frauenvertretung (GdS) – Social Insur-
ance System Trade Union – Women’s
Representation
Annex
» Gewerkschaft Nahrung-Genuss-Gast-
stätten (NGG) – Union of Workers in
» Verband Deutscher Maschinen- und
Anlagenbau e.V. (VDMA) – German
the Food, Beverages and Tobacco In- Engineering Federation
dustry and in the Hotel and Catering
Trade » Vereinigung der Bayerischen
Wirtschaft e.V. (vbw) – Bavarian Indus-
» Handelsverband Deutschland e.V.
(HDE) – German Retail Federation
try Association
» ereinte Dienstleistungsgewerkschaft
» Hans-Böckler-Stiftung
Böckler Foundation
(HBS) – Hans (ver.di) – United Services Trade Union
» Zentralverband des Deutschen Hand-
» Hasso-Plattner-Institut für Software- werks e.V. (ZDH) – German Confedera-
systemtechnik GmbH (HPI) – Hasso
Plattner Institute for Software Systems
tion of Skilled Crafts
Engineering » Zukunftsforum Familie e.V. – Forum
for Progressive Family Policy
» Industriegewerkschaft Bergbau, Che-
mie, Energie (IG BCE) – Industrial Min-
ing, Chemical and Energy Union
» Internet & Gesellschaft Collaboratory
e.V. (CoLab) – Internet & Society Col-
laboratory
» Kommissariat der deutschen Bischöfe –
German Bishops’ Office
» Marburger Bund, Verband der ange-
stellten und beamteten Ärztinnen und
Ärzte Deutschlands e.V. – Marburg
Federation of Doctors
» Katja Mast, Member of the Bundestag,
SPD parliamentary group in the Bun-
destag*
» Robert Bosch GmbH
» Professor Christopher M. Schlick, Insti-
tut für Arbeitswissenschaft der RWTH
Aachen (IAW) – Institute of Industrial
Engineering and Ergonomics at RWTH
Aachen University
» Sozialverband Deutschland e.V. (SoVD)
– Social Organisation Germany
* The responses submitted by political parties
and parliamentary groups in the Bundestag
have not been quoted in the text.
215
Annex
THE CONSULTATION PROCESS
The public debate on Industry 4.0 is characterised by the fact that
the focus is on technological innovations, with little attention paid to
labour and the impacts of technological development on the world of
work.
For this reason, the Federal Ministry of Labour and Social Affairs cre-
ated a framework for dialogue with the public and experts on the fu-
ture of our working society: the Work 4.0 dialogue, which ran from
the spring of 2015 to the end of 2016. Work 4.0 encapsulated this dia-
logue. Rather than looking only at work in the new production systems
of Industry 4.0, the dialogue aimed to discuss and play a part in shap-
ing our future working society’s social conditions and rules, building
on a vision for quality jobs and decent work in the digital age.
FROM THE GREEN PAPER TO THE WHITE PAPER
At the launch event in April 2015, Minister Nahles presented a Green
Paper on Work 4.0 which outlined the starting point and the Minis-
try’s aims, identified important developments, and posed many con-
crete questions to be discussed in the consultation process. The Green
Paper subsequently flew off the press and has since reached a print run
over of 27,000 copies. It has also been downloaded from the Ministry’s
website 11,000 times. It has been translated into English and even Ja-
panese so that it can form the basis for a dialogue which is not con-
fined to Germany alone.
To give the dialogue a clear objective, the Federal Ministry of Labour
and Social Affairs decided early on to present the initial outcomes in a
White Paper. It reflects what was discussed in working groups, expert
workshops, strategy and outcome papers, conferences, visits to compa-
nies and bilateral dialogues, and it sets out what conclusions the Minis-
try has drawn. A draft of the White Paper was presented at the closing
conference on 29 November 2016.
216
Annex
DIALOGUE PARTNERS AND FORMATS
The process was an open one, and many individuals and organisa-
tions participated. The dialogue was energised by over 50 responses to
the Green Paper which were submitted to the Federal Ministry of La-
bour and Social Affairs by the trade unions, employers associations,
companies and other stakeholders. The positions and proposals they
contained were discussed with the submitting organisations and other
partners at a mid-term conference on 15 March 2016. A list of all re-
sponses is included in this White Paper (→ page 214).
A total of seven workshops were held with more than 200 experts
from academia, the practitioner community and the social partners to
identify areas where action is needed in relation to key issues and to
evaluate options for action. Close collaborative links were developed
with the permanent members of the expert group, who took part in all
of the workshops and provided valuable input. A list of the experts and
the subjects examined is included in this White Paper (→ page 224).
As part of the Work 4.0 dialogue, a separate consultation process
on working time was held with the social partners, companies, civil so-
ciety and academia. The aim of the working time dialogue was to dis-
cuss, in a confidential framework, the challenges and opportunities of
innovative approaches to the organisation of working time, and to ex-
plore the potential for a fundamental consensus and compromises bet-
ween the participating stakeholders.
Separate discussions were held with representatives of self-em-
ployed individuals, business founders and small business owners on
their specific needs and matters of special importance to them.
The discussions also closely incorporated the existing discussion for-
mats of the Federal Ministry of Labour and Social Affairs on the future
of work and securing the supply of skilled labour, such as the Partner-
ship for Skilled Professionals, the IT Summit’s “Digital Working World”
platform and the Steering Committee of the New Quality of Work Ini-
tiative (INQA) . The New Quality of Work Initiative has significantly
revised its mission statement on the basis of the dialogue and is al-
ready incorporating impetus from Work 4.0 . The IT Summit’s “Digital
Working World” platform, headed jointly by the Metalworkers’ Union
217
Annex Annex

(IG Metall) and the Federal Ministry of Labour and Social Affairs, looked
in detail at the issues of “flexibility in working time and location” and
“employment and continuing vocational education and training” and
has published its own final reports on these subjects.
The website www.arbeitenviernull.de offers an overview of the
consultation process. It is a platform for all members of the public who
want to have their say. Comments on events, the Green Paper and
this White Paper can be submitted via Facebook and Twitter. From 5
November 2015, the Futurale film festival offered a forum for discus-
sions on the future of work, with 175 film screenings across Germany.
Seven documentaries on various aspects of the modern working world
were screened at 25 locations. After each screening, regional experts
and the audience engaged in discussion. Over 8,000 audience members
were involved in the Work 4.0 dialogue via the Futurale film festival.
Two documents to be singled out in this context are the Labour Mar-
ket Forecast for 2030 and the unprecedented study “Value Systems in
the Context of Work 4.0 ” (Wertewelten Arbeiten 4.0), which is based
on in-depth qualitative interviews with a representative sample of
1,200 people. Both of these documents highlight the immense oppor-
tunities associated with digitalisation. At the same time, they show how
much variation there is in workers’ needs and their visions of ideal
work, and how different and in some respects contradictory their ex-
pectations are regarding their own work and political action.

The responses to the Green Paper were published on the website

both individually and by subject, and extracts were published in the
“Work 4.0 workbooks” (Werkhefte). These workbooks accompanied the
consultation process, offered an insight into the state of discussion on
the key issues, contributed to the debate and formed an extended plat-
form for the specialised dialogue on the future of work. The first issue
of the Work 4.0 workbooks on the digitalisation of the working world
was presented at the mid-term conference. The second issue came out
in early September 2016. 10,000 copies of the workbooks were pub-
lished. They are also available online for download.

ACCOMPANYING RESEARCH
Throughout the entire Work 4.0 dialogue, the Federal Ministry of
Labour and Social Affairs has not only sought close contact with the re-
search community, but also commissioned more than twenty research
projects and individual papers in order to sharpen our awareness of the
empirical starting point, areas where action is needed and the policy
options. These research projects ranged from surveys of current re-
search results on individual issues and analysis of the political debates on
digitalisation in other countries, to representative business and worker
surveys, special Microcensus analyses and legal opinions, to collected
examples of best practice in relation to flexibility in working time and
location and continuing vocational education and training. Results
from these studies are presented at many points in this White Paper.

218 219
 THE CONSULTATION 11,000
27,000 OVER 200 GREEN PAPER

PROCESS
DOWNLOADS
EXPERTS FROM ACADEMIA, TRADE
UNIONS, ASSOCIATIONS AND THE
PRINTED
PRACTITIONER COMMUNITY
GREEN PAPERS
PARTICIPATED IN 7 WORKSHOPS

LAUNCH
CONFERENCE
RE-IMAGINING
WORK
OVER 50 RESPONSES FROM
ASSOCIATIONS, INSTITUTIONS,
AROUND 12,000 CLOSING
PARTICIPANTS IN EVENTS HELD BY
22 APRIL 2015
COMPANIES THE FEDERAL MINISTRY OF LABOUR
AND SOCIAL AFFAIRS AS PART OF
CONFERENCE
THE CONSULTATION PROCESS
29 NOVEMBER 2016

PUBLIC DIALOGUE

• The website www.arbeitenviernull.de documents the process

and offers opportunities for direct participation
• Town hall meeting with Federal Minister Nahles
at re:publica 2016

•4,300 contributions on Work 4.0 via arbeitenviernull, Twitter and Facebook • 4 panels as part of the Xing New Work Session

•Futurale film festival: 7 documentaries • 15,000 completed online tests for the “Value

• 175 discussion events in 25 towns and cities Systems in the Context of Work 4.0” study

GREEN PAPER WHITE PAPER

WORK 4.0 SPECIALISED DIALOGUE
• Symposium on Service Platforms from a Worker and WORK 4.0
• Advisory group composed of 18 experts from the academic and
practitioner communities
Consumer Perspective, held in partnership with the Federal
Ministry of Justice and Consumer Protection
• Series of 7 workshops
• Conference on Work in the Digital World – People,
• Working time dialogue with the Humboldt-Viadrina Governance Platform Organisation, Technology, held in partnership with the
• Work 4.0 lab: dialogue with solo self-employed individuals Federal Ministry for Economic Affairs and Energy
• Accompanying workbook offers an insight into the state of the discussions
(2 editions, 10,000 copies printed of each edition)
• IT Summit “Digital Working World” platform, Partnership for
Skilled Professionals, New Quality of Work Initiative (INQA)

STUDIES AND PAPERS • The “Digital Working World” foresight study provides

• “Value Systems in the Context of Work 4.0” study:

a medium- to long-term perspective on potential
developments in the world of work in individual sectors

•
based on in-depth interviews with a representative
More than 20 academic papers and legal opinions on issues
sample of 1,200 people

• “Labour Market Forecast for 2030” on the development

of skilled labour supply and demand in Germany
such as co-determination, continuing vocational education
and training, crowdworking, solo self-employment, flexibility
in working hours and location, etc.
OVER 15,000
COMPLETED ONLINE
MID-TERM
OVER 8,000 CONFERENCE OVER 1,000,000
TESTS FOR THE “VALUE
SYSTEMS IN THE CONTEXT
OF WORK 4.0” STUDY
VISITORS TO THE PAGE VIEWS ON THE ARBEITEN-
MOVING TOWARDS THE WHITE PAPER,
220 FUTURALE FILM FESTIVAL VIERNULL WEBSITE 221
15 MARCH 2016
Annex
ADVISORY GROUP
The specialised dialogue was supported by a group of advisers.
The experts were drawn from both the academic and practitioner
communities.
Professor Irene Bertschek
Head of the Information and
Communication Technologies Research
Department, Centre for European Economic
Research (ZEW), Mannheim
Professor Gerhard Bosch
Institute for Work, Skills and Training (IAQ),
University of Duisburg-Essen
Professor Ralph Bruder
Head of the Institute for Ergonomics (IAD),
Technische Universität Darmstadt
Dr Elke Frank
Head of Group Performance Development,
Deutsche Telekom AG
Astrid Granzow
Chairwoman of the Central Works Council,
Atos Information Technology GmbH
Professor Armin Grunwald
Head of the Institute for Technology
Assessment and Systems Analysis (ITAS),
Karlsruhe Institute of Technology
Michael Guggemos
Management Spokesman,
Hans Böckler Foundation
PD Dr Elke Holst
Gender Studies Research Director, German
Institute for Economic Research (DIW)
222
Professor Kerstin Jürgens Dr Ulrich Walwei
Head of Microsociology, Deputy Director of the Institute for
University of Kassel Employment Research (IAB)
Professor Ute Klammer Professor Armin Windel
Executive Director of the Institute for Director of Research and Development,
Work, Skills and Training (IAQ), Federal Institute for Occupational Safety
University of Duisburg-Essen and Health (BAuA)
Dr Hans-Peter Klös
Member of the Management Board,
Cologne Institute for Economic
Research (IW)
Dr Nathalie Lotzmann
Head of Global Health Management,
SAP SE
Professor Joachim Möller
Director of the Institute for Employment
Research (IAB)
Thomas Sattelberger
Spokesman of the Issue Ambassadors for
the New Quality of Work Initiative (INQA)
Mathias Staiger
Deputy Chairman of the Works Council,
Trumpf Werkzeugmaschinen GmbH +
Co. KG
Professor Bernd Waas
Institute of Civil and Business Law,
Goethe University Frankfurt
Annex
EXPERT DIALOGUE WORKSHOPS
The consultation process on the work of the future was also conducted in the WORK OR INDIVIDUAL SCHEDULES AND PRIORITIES – WHO IS IN CONTROL?
framework of a specialised dialogue, with a series of workshops involving OPTIONS FOR A LIFE-PHASE APPROACH TO THE ORGANISATION OF WORKING TIME
experts from the academic and practitioner communities. Documentation on
Dr Ulrich Walwei
all of the workshops can be accessed at www.arbeitenviernull.de. Institute for Employment Research (IAB):
Working time realities and wishes
Dr Hartmut Seifert
WSI Senior Research Fellow, Hans Böckler
Foundation: Employees’ working time
needs
Dr Hans-Peter Klös
Cologne Institute for Economic Research
(IW): Companies’ working time needs
PD Dr Elke Holst
German Institute for Economic Research
(DIW): Working time realities and wishes
from a gender perspective
MOBILE AND ANYTIME, ANYPLACE WORKING
Dr Susanne Steffes
Centre for European Economic Research
(ZEW): Mobile and anytime, anyplace
working from the perspective of em-
ployees: results of the “Quality of work
and economic success” survey
Professor Antje Ducki
Beuth University of Applied Sciences,
Berlin: Mobile work – health risks and
opportunities – needs for action
Professor Ulrike Hellert
FOM University of Applied Sciences:
Mobile and anytime, anyplace working
from the perspective of SMEs
Dr Elke Frank
Microsoft: Digital technologies as
facilitators of new forms of flexibility
224
Professor Ulrich Mückenberger
Research Professor of Transnational
Labour Law at the University of Bremen,
Chairman of the German Society for Time
Policy (DGfZP): Social-policy implications
of working time policy
Dr Christina Klenner
Institute of Economic and Social Research
(WSI) at the Hans Böckler Foundation:
Working time options over the life course
– What factors in organisations influence
their use?
Daniela Jauch
Gambro Dialysatoren GmbH: Best practice –
Working time options in organisations
Frank Roth
AppSphere: Opening up options and
setting guidelines, from the perspective
of a small business
Dr Peter Cammerer
BMW Works Council: Opening up
options and setting guidelines, from
the perspective of a large company
Dr Manuela Maschke
Hans Böckler Foundation: Key fields of
action in shaping mobile work by means
of works agreements
Paul van Dun
Ministry of Social Affairs and Employment,
the Netherlands: When possibilities
become rights: the right to telework in
the Netherlands
Annex
Dr Philip Wotschack
Berlin Social Science Center (WZB):
Optional long-term accounts:
potential, limits and policy options
Professor Heide Pfarr
Chairwoman of the Commission on Labour,
Corporate and Commercial Law and Equal
Opportunities of the German Women
Lawyers Association (djb): Policy options
for working time choice (abridged written
version of the presentation)
Professor Gerhard Bosch
University of Duisburg-Essen: Parameters
of a life-phase approach to the organisation
of working time
Professor Friedhelm Nachreiner
Formerly of the University of Oldenburg:
Questions relating to the law on working
time: what legal framework promotes
healthy working when workers control
their working time and location?
Professor Rüdiger Krause
University of Göttingen: Questions
relating to the law on working time:
setting boundaries
225
Annex
DIGITALISATION’S IMPACTS ON EMPLOYMENT AND FORMS OF WORK
Professor Michael Beigl
Karlsruhe Institute of Technology (KIT):
What lies ahead? An overview of techno-
logical developments and their fields of
application
Professor Holger Bonin
Centre for European Economic Research
(ZEW): Debate about the end of work and
digitalisation’s impacts on employment,
occupations and skills
Professor Volker Deville
Allianz Deutschland AG: What does rising
automation mean for employees of an in-
surance group? New skills requirements
and operational approaches
EDUCATION, SKILLS DEVELOPMENT AND CONTINUING VOCATIONAL EDUCATION AND TRAINING
Professor Reinhard Pollak
Berlin Social Science Center (WZB) and
Freie Universität Berlin: Challenges for
continuing vocational education and train-
ing in Germany (need, supply structure,
uptake, potential for social mobility)
Jan Eggert
BMW Education Academy:
Industry’s changed needs regarding
human resources and skills
Professor Matthias Jarke
Fraunhofer Institute for Applied Informa-
tion Technology (FIT): New requirements
of the digital working world – computer-
based possibilities for continuing voca-
tional education and training integrated in
the working process.
226
Oskar Heer
Daimler AG: Working in Industry 4.0 –
challenges for organisations and workers
Thomas Mendrzik
Hamburger Hafen und Logistik AG: Social
partnership in an era of rising automation
– example of an innovative collective
agreement offering protection from
rationalisation
Professor Jan Marco Leimeister
University of Kassel: New forms of work in
the digital working world – fields of action
and policy options
Alfred Löckle
Central Works Council and Group-Level
Works Council of Robert Bosch GmbH:
Continuous vocational training as an
instrument for in-company training of
skilled workers and social mobility
Stefan Soltmann
Industrial Mining, Chemical and Energy
Union (IG BCE): Anchoring of continuing
vocational education and training in
collective bargaining policy
Professor Eva Kocher / Professor Felix
Welti
European University Viadrina, Frankfurt
(Oder) / University of Kassel:
Legal design of an entitlement to continu-
ing vocational education and training
Sebastian Kurt
scondoo GmbH: Advantages and
disadvantages of new forms of work
for user companies
Robert Titelbach
Federal Ministry of Labour, Social Affairs
and Consumer Protection, Austria: Policy
learning, taking full-time and part-time
training leave in Austria as an example
Friedhelm Siepe
Federal Employment Agency: How does
the Agency see its future/development
potential? (Strategic focus and concrete
experience gained from the pilot project
on advice on continuing vocational
education and training)
LABOUR LAW AND CO-DETERMINATION
Professor Gregor Thüsing
University of Bonn: Forms of digital work
and their classification under labour law
Dietmar Schenn
Works Council of Audi AG:
Innovative participation approaches –
case study: Audi AG
SOCIAL SECURITY
Dr Verena Tobsch
Institute for Empirical Social and
Economic Research (INES), Berlin:
Solo self-employed individuals in Germany
and the potential of the gig economy
Professor Wiebke Brose
University of Duisburg-Essen:
Assessment of new forms of employment
in terms of existing social insurance law
Melanie Fahmy
TNS Infratest: Presentation of the
results of the qualitative study
“Focus group discussions”
Uwe Zillessen
Works Council of Publicis Pixelpark:
Innovative participation approaches –
case study: Publicis Pixelpark, Cologne
Professor Peter Wedde
Frankfurt University of Applied Sciences:
Digitalisation and employee data protec-
tion, and impetus for joint approaches to
change processes in organisations in the
digital working world
Dr Andreas Lutz
Association of Founders and Entrepre-
neurs Germany (VGSD): Position of an
organisation representing the interests
of self-employed individuals
Michael Quabach
German Statutory Accident Insurance
(DGUV): Digitalisation’s impacts on
statutory accident insurance: status
quo and challenges
Professor Ulrich Preis
University of Cologne: Necessity of
compulsory provision for old age for
all members of the labour force?
Annex
Dr Manuela Maschke
Hans Böckler Foundation: Position on
joint approaches to change processes in
organisations in the digital working world
Dr Hans-Peter Klös
Cologne Institute for Economic Research
(IW): Position on joint approaches to
change processes in organisations in the
digital working world
Dr Reinhold Thiede
German Federal Pension Insurance
(DRV Bund): Problems in designing
pension insurance for (solo) self-
employed individuals
Monika Queisser
OECD: Design of provision for old age
for self-employed individuals in selected
OECD countries – policy learning
Victoria Ringleb
Alliance of German Designers (AGD):
Position of an organisation representing
the interests of self-employed individuals
227
Annex
SOCIALLY COMPATIBLE CHANGE MANAGEMENT AND GOOD CORPORATE MANAGEMENT
Jan Sievers
TUI AG: Evolution of agile methods
in practice in a large company
Professor Rötting
Technische Universität Berlin: Future
of human-machine interaction
Dr Christian Schlögel
KUKA AG: Human-machine interaction
in Industry 4.0
228
Per Wiek
Deutsche Bahn AG: The future of
human-machine interaction in the
service sector
Dr Immanuel Hermreck
Bertelsmann SE: Shaping the digital
transformation from the perspective of
human resources management
Birgit Isenmann und Alfred Löckle
Robert Bosch GmbH: Shaping the digital
transformation at Robert Bosch GmbH
Annex
Dr Jochen Appt
German Statutory Accident Insurance
(DGUV): New challenges for health and
safety at work and possibilities for the
organisation of work
Dr Werner Eichhorst
Institute of Labor Economics (IZA):
Economic incentive systems to promote
good working conditions
229
Annex

FUTURALE – A FILM FESTIVAL THE FILMS

ON THE FUTURE OF WORK UNLIMITED FREEDOM – UNLIMITED REACHABILITY?
DIGITALE NOMADEN – DEUTSCHLAND ZIEHT AUS

Director: Tim Jonischkat, Germany 2015

Digital nomads are location-independent, free-spirited individuals who are able to carry out their work anywhere in the world.
On 5 November 2015, the Federal Ministry of Labour and Social The first German-language documentary on this subject takes the audience on a fascinating voyage of discovery through a new
Affairs launched another way for members of the public to participate way of life and a new working world.

»The film festival #Futurale in the discussion about the future of work: Futurale.
is about nothing less than the
#FutureofWork « The film festival, consisting of seven documentaries, toured Germany
25 Feb. 2016 via Twitter for an entire year. The films cover a wide range of different aspects of
work: they show the everyday reality of work in all its facets, highlight
digitalisation’s impacts on traditional occupations, and follow compa-
»Go along! Take part in nies which are embarking on new paths. They show new forms of
the discussion! Learn something! employment and innovative life plans, and offer an insight into the
#FUTURALE « world of start-ups.
14 Sep. 2016 via Twitter
Following each film, regional experts engaged in discussion with the
audience – and so the subject of Work 4.0 was examined from a whole
»Today: Work 4.0 – hopes range of different perspectives over the course of 175 events. More
and reality « information is available at www.arbeitenviernull.de.
ROBOTS AS THE ANSWER TO DEMOGRAPHIC CHANGE?
IK BEN ALICE
Director: Sander Burger, The Netherlands 2015
In an ageing society, qualified professionals are in short supply in the long-term care sector, and so in future the robot carer
“Alice” will step in. The documentary IK BEN ALICE, which premiered in Rotterdam, examines the question of how robots can
build a relationship with people. Moving, heart-rending and ethically thoughtful.
WILL THE FUTURE BE PRINTED?
PRINT THE LEGEND
Directors: Luis Lopez, Clay Tweel, USA 2014
The prize-winning documentary PRINT THE LEGEND looks at the race to bring 3D printing technology to market, which
Barack Obama referred to as the next technical revolution in his 2013 State of the Union Address. The filmmakers follow the
entrepreneurs who are placing 3D technology at the heart of their start-up ideas, and show what this “Macintosh Moment”
means to them.
I WORK, THEREFORE I AM – IDENTITY VIA WORK?
DEINE ARBEIT, DEIN LEBEN!

16 Apr. 2016 via Twitter Director: Luzia Schmid, Germany 2015

DEINE ARBEIT, DEIN LEBEN! is part of a cross-media project examining what work means today in a traditional
industrial heartland. And it does so as authentically and directly as possible: from the perspective of the people concerned.
At the invitation of the broadcaster WDR, people recorded their day-to-day work using smartphones or video cameras. This
documentary was then created from several hundred homemade videos.

MORE THAN 8,000 BRAVE NEW WORKING WORLD?

HAPPINESS AT WORK

7 FILMS AUDIENCE MEMBERS Director: Martin Meissonnier, France 2014

The economic crisis has the global labour market in its grip. The documentary HAPPINESS AT WORK gives a voice to
Hamburg companies which are defying the negative mood and taking innovative steps to ensure that their staff enjoy coming to
Bremen Potsdam work again, while at the same time generating higher profits.
Berlin
Hannover Düsseldorf

Braunschweig Magdeburg
25 LOCATIONS DREAMING OF COINING IT IN FROM YOUR SOFA? YOUTUBE MAKES IT POSSIBLE
PLEASE SUBSCRIBE
Koblenz Jena
Director: Dan Dobi, USA 2013
Kiel/Ostholstein Dortmund Kassel Dresden
Gütersloh YouTube is already the world’s second biggest search engine, after Google. Every day, users click on around four billion videos;
hundreds of hours of video material are uploaded every minute. PLEASE SUBSCRIBE explains the phenomenon of some of the
102,388 MINS OF FILM SCREENINGS Rostock
most influential content creators who have set the standard for YouTubers.

Frankfurt Tübingen FROM IDEA TO START-UP – HOW LONG A ROAD?

Nürnberg Bayreuth
am Main Saarbrücken SILICON WADI
Karlsruhe München
Bodensee Director: Daniel Sivan, Yossi Bloch, Israel 2014
Mainz
Israel is regarded as the start-up nation. There are more start-ups in Tel Aviv alone than in the whole of Europe. Nowhere else can
match Israel for the amount of venture capital available per person. How does a high-tech nation function?
OVER 350 EXPERTS SILICON WADI by Daniel Sivan and Yossi Bloch follows four young companies and their backers in Tel Aviv over two years.

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