Employers' associations represent the interests of business to government and engage in collective bargaining with trade unions. Associations in some countries, such as Germany, undertake a much wider range of functions than associations in other countries, for example the UK. In countries with associations that display a high level of organizational development, tasks are undertaken that would otherwise be the responsibility of public agencies and a more comprehensive range of services is provided to members.

Associations are influenced by the political systems in which they operate and three broad patterns of government-business relations can be identified: company state; associative state; and party state.

There has been an increasing emphasis in recent years on the need for employers' associations to organize at the European Union level. This is achieved both through European federations of national federations and direct membership associations.

Even in countries where it has been relatively centralized, collective bargaining is increasingly undertaken by individual firms. Large firms have also developed their own government relations divisions to represent their interests to government. Although these developments undermine the role of employers' associations they remain the main mechanism for defining and representing business interests.

Wyn Grant