Flender/Flender Gear Units/Helical gear Reduction Boxes H4
ion contract which is renegotiated every 3 years. The contract expired in March 1 and is up for renegotiation. The

union wants to reduce the work week from 3 to 3 hours and to increase wages by up to 7

percent. The shorter work week is meeting resistance from employers, trade associations, and the Federal Government because of the growing

shortage of skilled workers. 2 These groups have taken the position that shortening the work week would reduce industry output.

Employers would like to retain the flexibility of using overtime to meet temporary increases in demand whereas the union would prefer that employers hire more workers. Further, because of the difficulty in firing or laying off employees, companies are reluctant to increase the workforce when the need may be only temporary. Not only do companies find that laying off workers is difficult and expensive because of union and government regulations, it hurts their reputation and ability to recruit good workers. The effects of the union' resistance to overtime vary. Generally, matters such as overtime and special shifts are negotiated with the local workers' councils which may be more flexible on these subjects than the national union. Some companies have no difficulty getting approval from these councils for overtime but often have to grant concessions in other areas in return. Other companies find that their ability to increase production temporarily is severely curtailed by the councils' restriction on overtime. Government policies and programs The West German Government supports its industries, including the gear industry, through variety of policies and programs. These include 2 Ibid. 2e .. Department of State Telegram, November 1, Bonn, Message Reference No. 3. 5-6 maintaining low interest and inflation rates. In the area of tax policy, machinery is usually depreciated over 5 to 8 years; machines running in three shifts can be depreciated within 2 to 3 years 2