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What Triggers the Establishment of a Works Council?

Author

Listed:
  • Jens Mohrenweiser

    (Center for European Economic Research, Mannheim)

  • Paul Marginson

    (Warwick Business School)

  • Uschi Backes-Gellner

    (Institute for Strategy and Business Economics, University of Zurich)

Abstract

This paper analyses events that trigger the establishment of a works council and the actor or agent who triggers it. The paper extends previous research in two dimensions. First, we examine specific events that motivate workers to establish a works council, such as a change of owner, founding a spin-off, a firm-acquisition or a radical restructuring. These events express risk protection as workers’ primary motivation for establishing a works council. Second, we analyse the actor or agent who triggers the establishment of a works council and show that management is involved in one third of all cases and has, in a minority of cases, motivated workers to establish a works council. Managerial involvement in the process of establishment reveals a positive managerial response to worker representation.

Suggested Citation

  • Jens Mohrenweiser & Paul Marginson & Uschi Backes-Gellner, 2009. "What Triggers the Establishment of a Works Council?," Working Papers 0101, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jul 2010.
    • Handle: RePEc:iso:wpaper:0101
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    References listed on IDEAS

    as
    1. John T. Addison & Claus Schnabel & Joachim Wagner, 2004. "The Course of Research into the Economic Consequences of German Works Councils," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 255-281, June.
    2. Addison, John T. & Bellmann, Lutz & Pahnke, André & Teixeira, Paulino, 2008. "A Note on the Determinants and Consequences of Outsourcing Using German Data," IZA Discussion Papers 3608, Institute of Labor Economics (IZA).
    3. Richard B. Freeman & Edward P. Lazear, 1995. "An Economic Analysis of Works Councils," NBER Chapters, in: Works Councils: Consultation, Representation, and Cooperation in Industrial Relations, pages 27-52, National Bureau of Economic Research, Inc.
    4. Uwe Jirjahn, 2009. "The Introduction of Works Councils in German Establishments — Rent Seeking or Rent Protection?," British Journal of Industrial Relations, London School of Economics, vol. 47(3), pages 521-545, September.
    5. Olaf Hübler & Uwe Jirjahn, 2003. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(4), pages 471-491, September.
    6. Jelle Visser, 1995. "The Netherlands: From Paternalism to Representation," NBER Chapters, in: Works Councils: Consultation, Representation, and Cooperation in Industrial Relations, pages 79-114, National Bureau of Economic Research, Inc.
    7. Carola M. Frege, 2002. "A Critical Assessment of the Theoretical and Empirical Research on German Works Councils," British Journal of Industrial Relations, London School of Economics, vol. 40(2), pages 221-248, June.
    8. Joel Rogers & Wolfgang Streeck, 1995. "Works Councils: Consultation, Representation, and Cooperation in Industrial Relations," NBER Books, National Bureau of Economic Research, Inc, number roge95-1.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Uwe Jirjahn & Jens Mohrenweiser & Uschi Backes‐Gellner, 2011. "Works Councils and Learning: On the Dynamic Dimension of Codetermination," Kyklos, Wiley Blackwell, vol. 64(3), pages 427-447, August.
    2. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2013. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(2), pages 182-209, May.
    3. Uwe Jirjahn, 2011. "Gender, Worker Representation and the Profitability of Firms in Germany," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 281-298, December.
    4. Uwe Jirjahn & Steffen Mueller, 2014. "Non-union worker representation, foreign owners, and the performance of establishments," Oxford Economic Papers, Oxford University Press, vol. 66(1), pages 140-163, January.
    5. Uwe Jirjahn & Vanessa Lange, 2015. "Reciprocity and Workers’ Tastes for Representation," Journal of Labor Research, Springer, vol. 36(2), pages 188-209, June.
    6. Jirjahn, Uwe & Mohrenweiser, Jens, 2013. "Active owners and the failure of newly adopted works councils," ZEW Discussion Papers 13-080, ZEW - Leibniz Centre for European Economic Research.
    7. Ronald Bachmann & Hanna Frings, 2017. "Monopsonistic competition, low-wage labour markets, and minimum wages – An empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 49(51), pages 5268-5286, November.
    8. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2013. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(2), pages 182-209, May.
    9. Steffen Mueller & Jens Stegmaier, 2017. "The Dynamic Effects of Works Councils on Labour Productivity: First Evidence from Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 55(2), pages 372-395, June.
    10. Genz, Sabrina & Bellmann, Lutz & Matthes, Britta, 2018. "Do German Works Councils Counter or Foster the Implementation of Digital Technologies?," IZA Discussion Papers 11616, Institute of Labor Economics (IZA).
    11. John Forth & Alex Bryson & Anitha George, 2016. "Explaining Cross-National Variation in Workplace Employee Representation," DoQSS Working Papers 16-10, Quantitative Social Science - UCL Social Research Institute, University College London.
    12. Oberfichtner, Michael, 2013. "Works council introductions: Do they reflect workers' voice?," Discussion Papers 83, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    13. Arnold, Daniel & Brändle, Tobias & Goerke, Laszlo, 2013. "Sickness Absence, Works Councils, and Personnel Problems. Evidence from German Individual and Linked Employer-Employee Data," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79906, Verein für Socialpolitik / German Economic Association.
    14. Ellguth, Peter & Gerner, Hans-Dieter & Stegmaier, Jens, 2012. "Wage bargaining in Germany : the role of works councils and opening clauses," IAB-Discussion Paper 201205, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Backes-Gellner Uschi & Mohrenweiser Jens, 2010. "Die Wirkung des Betriebsverfassungsgesetzes am Beispiel der Freistellung von Betriebsräten – ein Beitrag zur Rechtstatsachenforschung / The Effect of the Works Council Act on Paid Leave of Absence of ," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(4), pages 420-435, August.
    16. Jens Mohrenweiser & Uschi Backes-Gellner, 2009. "Die Wirkung des Betriebsverfassungsgesetzes am Beispiel der Freistellung von Betriebsräten – ein Beitrag zur Rechtstatsachenforschung," Working Papers 0104, University of Zurich, Institute for Strategy and Business Economics (ISU).
    17. Uschi Backes-Gellner & Jens Mohrenweiser & Kerstin Pull, 2011. "When Does Regulation Bite? Co-Determination and the Nature of Employment Relations," Working Papers 0147, University of Zurich, Institute for Strategy and Business Economics (ISU).

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    More about this item

    Keywords

    co-determination; workers voice; establishment of a works council;
    All these keywords.

    JEL classification:

    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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