Due to industrial revolution in countries, the need for industrial relations has arisen. There are regions that are believed to have the largest economy globally. The largest economy globally is the European economy as it controls a large percentage of the global market. Germany is believed to be Europe's largest economy. According to Eurofound (2009), the largest sector in Germany is the service sector which comprises approximately 68% of the labor market. The state has transformed itself into a service company and therefore generates around 70% of the gross domestic product from this sector. This was slightly lower than the average gross domestic product of the 15 members of the European Union before enlargement (Britannica, 2010). Germany has a five-model principle that it uses in industrial relations. This system was developed in the post-World War II period in the federal state and later extended to the East German state after unification (Lazlo Goerke, 2007). The five models consist of; relative centralization of collective bargaining, extensive juridification, dual structure, collective representation of all employees and "intermediary" character of collective bargaining institutions (Manfred Weiss 'et al', 2008). According to Etui.com (2009), the model German industrial report, trade unions must be organized at sector level. It also recommends the coexistence of trade unions with works councils at plant and company level. The German dual system of industrial relations has gained a unique status in international comparative studies due to the level of exclusivity of the two pillars of interest representation (Peter Mayer 'et al', 1998). This is unique among European and Western countries. States that have... half of the document... news/news.archieve-2010/Sage Journals Online, 2010, Economic and Industrial Democracy. Retrieved from:http://eid.sagepub.com/content/24/3/39.abstractSage Journals Online, 2011, Employee Relations in Germany, Multinationals I an Anglo-SaxonSetting: Towards A Germanic Version of the Anglo-Saxon Approach? Retrieved from: http://ejd.sagepub.com/content/9/3/327.abstractSBU, 1996, The German industrial relations system: a model for Britain? Retrieved from: http://bus/sbu.ac.uk/resources/CIBS/european-institute-papers/papers1/197.PDFTUTBNewsletter, 2004, The role of German trade unions in the national and European standardization process. Retrieved from: http://hesa.etui-rehs.org/uk/newsletter/files/BTSO12EN_12-15.pdfWarren Grimes, 1969, The Changing Structure of the East German Industrial Enterprise. Retrieved from: http://www.jstor .org/pss/838314