The Stinnes-Legien Agreement, passed in November 1918, resulted in employers officially recognizing trade unions as workers’ appointed representatives. The basis of this historical alliance was the common objective of social partners to create a free market and social economic order. Nevertheless, this first attempt to establish a social partnership in Germany failed. The agreement's intention to regulate working conditions autonomously prevailed, though, setting the tone for later generations. Following the Second World War, for example, free collective bargaining established itself as a pillar of the social market economy. A central factor here concerned collective bargaining parties’ commitment to achieve an equitable balance between competing interests without resorting to involving the state as an arbitrator. However, the current decline in collective bargaining coverage, suggests the social partners are unable to convince actors outside this system of employment regulation of the benefits of an arrangement that attempts to reconcile conflicting interests. In discussing how to remedy this shortcoming, a more active role of the state is considered. Indeed, a return to the Stinnes-Legien agreement would make collective bargaining parties accountable. However, this presupposes that both sides do not seek reciprocal alliances with the state.