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Works Councils and Plant Closings in Germany

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  • John T. Addison
  • Lutz Bellmann
  • Arnd Kölling

Abstract

This paper is the first study to investigate the impact of workplace representation on plant closings in Germany, using data from a nationally representative establishment panel. Across all establishments in our sample, we find evidence of a positive association between works council presence and plant closings. There is the contrary suggestion that industry-wide collective bargaining plays a neutral to benign role. As for the interaction between collective bargaining and workplace representation, this appears strongest for establishments with fewer than 50 employees: such plants are much more likely to close if they have a works council and are not covered by a collective agreement. Copyright Blackwell Publishing Ltd/London School of Economics 2004.

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Bibliographic Info

Article provided by London School of Economics in its journal British Journal of Industrial Relations.

Volume (Year): 42 (2004)
Issue (Month): 1 (03)
Pages: 125-148

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Handle: RePEc:bla:brjirl:v:42:y:2004:i:1:p:125-148

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