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ABSTRACT Denmark is often highlighted as a good example of organised decentralisation in which employee bargaining power remains comparatively strong. However, comparative analysis of the Danish case rarely reflects how the social contracts between management and workers' representatives contribute to the bargaining outcome at company level. Drawing on 10 case studies in the German and Danish metal industries carried out in 2005, this article argues that the social contracts at the Danish case companies allow a more efficient use of company‐level agreements on flexible working hours than the social contracts at the German case companies.
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