Indonesian Journal of Taxation and Accounting
Vol 4, No 2 (2026): June 2026

Institutions, Trade Union Effectiveness, and Workers' Bargaining Power: A Comparative Study of Indonesia and Germany

Neysa Adelia Nova Abdullah Putri (Universitas Brawijaya, Indonesia)
Rachmad Kresna Sakti (Universitas Brawijaya, Indonesia)
Nugroho Suryo Bintoro (Universitas Brawijaya, Indonesia)



Article Info

Publish Date
21 Jun 2026

Abstract

Purpose - This study examines how institutional design shapes the effectiveness of trade unions in strengthening workers' bargaining power. It compares Germany and Indonesia to explain why similar union presence can produce different bargaining outcomes. Methods - This study uses a qualitative comparative design based on secondary data from peer-reviewed journals, institutional reports, and labour regulations. The sources were selected through a structured literature search and analysed using thematic content analysis and a comparative institutional matrix. Findings - The findings show that union effectiveness is shaped less by membership numbers alone than by institutional access, legal recognition, collective bargaining coverage, and formal participation in decision-making. Germany's codetermination, works councils, and sectoral bargaining embed unions in industrial governance. Indonesia's fragmented unions, weak enforcement, limited bargaining coverage, and high informality reduce the practical influence of unions. Research Implications - The study implies that strengthening workers' bargaining power requires institutional reform, not only recruitment of union members. Its limitation is that it relies on secondary qualitative sources and does not statistically test causal relationships across countries. Originality - This study contributes to comparative industrial relations by positioning institutional embeddedness as the key mechanism linking trade union effectiveness to workers' bargaining power in coordinated and fragmented labour regimes.

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Journal Info

Abbrev

IJOTA

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

1. Taxation Tax Policy and Fiscal Policy Tax Compliance and Tax Administration Tax Planning and Tax Avoidance Corporate Taxation International Taxation Digital Taxation and Tax Technology Behavioral Aspects in Tax Compliance 2. Financial Accounting and Reporting Financial Reporting Standards ...