Wage bargaining in Germany : the role of works councils and opening clauses
Abstract"German employment relations are characterized by a distinct dual system: First, working conditions and wages are determined by industry level collective bargaining agreements. Second, on the establishment level the works council is responsible for employer-employee negotiations. But since the mid-1980s more and more areas of regulation were transferred from the industry to the establishment level using so called opening-clauses. Our analysis relies on rich German establishment data and reveals new insights in the institutional machinery of wage bargaining: While the existence of such clauses is related to higher wages (11 %), their application results in wages cuts of roughly the same size. Regarding works councils our results suggest that they are able to prevent negative wage effects of opening clauses on average." (Author's abstract, IAB-Doku) ((en))
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Bibliographic InfoPaper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 201205.
Length: 21 pages
Date of creation: 08 Mar 2012
Date of revision:
Tarifverhandlungen; Tarifvertrag; Betriebsrat; Lohnfindung; Öffnungsklausel; IAB-Betriebspanel;
Find related papers by JEL classification:
- J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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