This article argues that industrial relations (IR) in the German public sector are not just a replica of private sector IR. It suggests that neither the structures, nor the outcomes can be sufficiently explained by derivation from private sector IR processes. Primarily, the specifics and developments of the public sector explain public sector IR. It is of fundamental importance whether trade unions operate in a profit‐driven market environment or a publicly financed environment that is under public control. Differences between the public and the private sector result not least in the distinct relevance and meanings of trade union power resources. This influences the ways in which industrial action in the private and the public sector works and is relevant for trade union strategies.