Labour relations constitute the institutionalised relationship between employers and employees, and may exist at several levels. In Germany, the labour relations are organised at company level between works councils and management and at branch level between trade unions and employers' associations. Here, for example, arrangements are made to regulate the specific working conditions, or collective agreements are concluded that are essential for determining salaries or working hours. During recent years collective agreements were concluded more often with opening clauses which increases the importance of arrangements at establishment level. The freedom to strike allows the workers to given more weight to their interests.
The representation of employee’s interests at the company and branch levels allow e.g. minimum standards in working conditions and payments as well as the possibility to participate in professional training. By this, they can contribute substantially to the quality of employment.