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In-plant alliances can mitigate economic crisis impacts

Author

Listed:
  • Lutz Bellmann

    (Institute for Employment Research (IAB), University of Erlangen-Nuremberg, and IZA, Germany)

  • Werner Widuckel

    (University of Erlangen-Nuremberg, and IZA, Germany)

Abstract

In-plant alliances are plant-specific deviations from sectoral collective agreements related to wages and working time that are intended to hold down labor costs. These agreements enable firm-level reorganizations to respond to an imminent economic crisis or to improve competitiveness. They also encourage social partners to take greater responsibility for employment issues. Both unions and works councils agree to such contracts because they see them as helpful in avoiding severe employment losses. Thus, these alliances substantially unburden public employment policy.

Suggested Citation

  • Lutz Bellmann & Werner Widuckel, 2022. "In-plant alliances can mitigate economic crisis impacts," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-79, December.
    • Handle: RePEc:iza:izawol:journl:2022:n:79
    as

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    References listed on IDEAS

    as
    1. Ulf Rinne & Klaus F Zimmermann, 2013. "Is Germany the North Star of Labor Market Policy?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(4), pages 702-729, December.
    2. Lutz Bellmann & Hans-Dieter Gerner, 2011. "Reversed Roles? Wage and Employment Effects of the Current Crisis," Research in Labor Economics, in: Who Loses in the Downturn? Economic Crisis, Employment and Income Distribution, pages 181-206, Emerald Group Publishing Limited.
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    4. Bellmann Lutz & Gerner Hans-Dieter, 2012. "Further Training and Company-Level Pacts for Employment in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(2), pages 98-115, April.
    5. Zagelmeyer, Stefan., 2010. "Company-level bargaining in times of crisis : the case of Germany," ILO Working Papers 994471933402676, International Labour Organization.
    6. Bellmann Lutz & Gerlach Knut & Meyer Wolfgang, 2008. "Company-Level Pacts for Employment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(5-6), pages 533-553, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    in-plant alliances; decentralization of wage setting; global economic crisis; employment effects;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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