Earlier quoted context omitted.
Germany has much stronger labor unions than the USA, a legal requirement we forced on them when they finalized the constitution (Basic Law) of 1949. Since that time, compare the fate of the American auto companies (GM, Ford, Chrysler and American Motors) to German auto companies (Mercedes Benz, Volkswagen, BMW). The American companies ruled the world, and then lost market ground, one went bankrupt, another was bought…
It should be noted that Germany's wage/GDP growth has been quite stagnant since the 1970s as well. Its auto industry has been successful, but that can be attributed to numerous other factors, like its effective education system, which puts a much heavier emphasis on vocational training, its engineering culture, and government policy focused on promoting auto manufacturing, all of which can counter-act the negative ef…
It might be that unions are the reason why German car companies are doing well, but there are definitely other factors at play too.