Why is there resistance to works councils in Germany? An economic perspective

Author:

Müller Steffen1,Stegmaier Jens2

Affiliation:

1. Halle Institute for Economic Research, Germany

2. Institute for Employment Research, Germany

Abstract

Recent empirical research generally finds evidence of positive economic effects for works councils, for example with regard to productivity and – with some limitations – to profits. This makes it necessary to explain why employers’ associations have reservations about works councils. On the basis of an in-depth literature analysis, this article shows that beyond the generally positive findings, there are important heterogeneities in the impact of works councils. The authors argue that those groups of employers that tend to benefit little from employee participation in terms of productivity and profits may well be important enough to shape the agenda of their employers’ organization and have even gained in importance within their organizations in recent years. The authors also discuss the role of deviations from profit-maximizing behavior like risk aversion, short-term profit-maximization and other non-pecuniary motives, as possible reasons for employer resistance.

Publisher

SAGE Publications

Subject

Management of Technology and Innovation,Organizational Behavior and Human Resource Management,Strategy and Management,General Business, Management and Accounting

Cited by 14 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. German and Dutch works councils: A trust theory of legal employee voice;Human Resource Management Journal;2024-05-28

2. The Demise of Works Councils in Germany;SSRN Electronic Journal;2024

3. Works council ‘disaffection’ and establishment survivability;Scottish Journal of Political Economy;2022-07-17

4. Entspricht die Mitbestimmung wirtschaftlichen Bedürfnissen?;Industrielle Beziehungen. Zeitschrift für Arbeit, Organisation und Management;2022-06-08

5. The wage impact of being a works council representative in Germany: A case of strategic discrimination?;Industrial Relations: A Journal of Economy and Society;2022-05-21

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