Abstract
This article examines a relatively underdeveloped aspect of the neo‐corporatist debate: the political processes within trade unions participating in incomes policies. It focuses on the structures which contribute to the management of intra‐organisational conflict. The contention is that the failure to predict trade union performance in an incomes policy stems from a failure to take into account the internal environmental demands of organisations participating in neo‐corporatist structures. The argument is exemplified by an examination of the dual structure of interest representation in German trade unions. The conclusion is that these structures may prove dysfunctional in the face of changing social and economic conditions.

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