German workers, once among the most protected in the world, are feeling the strain of a sluggish economy and increased globalization. The nation's biggest employers have all cut jobs to save costs and the government is preparing to overhaul generous welfare programs. Germany has always been a high-wage country with generous benefits, but the recent expansion of the European Union will allow more German corporations to move operations to lower-wage countries.
See "Germany's Once-Protected Workers Are Feeling Vulnerable", Jeffrey Fleishman, Los Angeles Times, October 28, 2004