Jens Mohrenweiser () (Institute for Strategy and Business Economics, University of Zurich) Paul Marginson () (Warwick Business School) Uschi Backes-Gellner () (Institute for Strategy and Business Economics, University of Zurich)
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This paper presents the first survey evidence about the agent and associated event which triggers the establishment of a works council. We argue that the request of risk protection is a relevant trigger mechanism and show that an organisational shock causes the establishing of a works council. We argue that an organisational shock increases uncertainty of the workforce based on information asymmetries about the security of the workplaces. Furthermore, we show that the workforce alone calls for election in around two third of all cases and in the other third, the management was involved in the establishment. Here, the management values the expected productivity enhancement more than the potential rent redistribution.
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Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number
0101.
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