We trace the profound decline in German unionism over the course of the last three decades. Today, just one in five workers is a union member, and whether this degree of penetration is consistent with a corporatist model built on encompassing unions is now moot. The decline in union membership and density is attributable to external forces that have confronted unions in many countries (such as globalization and compositional changes in the workforce), to some specifically German considerations (such as the transition process in post-communist Eastern Germany), and to sustained intervals of classic insider behavior on the part of German unions. The "correctives" have included mergers between unions, decentralization, and wages that are more responsive to unemployment. At issue is the success of these innovations. For instance, the trend toward decentralization in collective bargaining hinges in part on the health of that other pillar of the dual system of industrial relations, the works council. But works council coverage has also declined, leading some observers to equate decentralization with deregulation. While this conclusion is likely too radical, German unions are at the crossroads. We argue that if they fail to define what they stand for, are unable to increase their presence at the workplace, and continue to lack convincing strategies to deal with contemporary economic and political trends working against them, their decline may become a rout.