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When Does Regulation Bite? Co-Determination and the Nature of Employment Relations

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Author Info

  • Uschi Backes-Gellner

    ()
    (Department of Business Administration, University of Zurich)

  • Jens Mohrenweiser

    ()
    (Centre for European Economic Research)

  • Kerstin Pull

    ()
    (Department of Human Resource Management and Organization, Eberhard Karls Universitaet Tuebingen)

Abstract

The German Codetermination Law grants workers of establishments with 200 or more employees the right to have a works councillor fully exempted from his regular job while still being paid his regular salary. We analyze theoretically and empirically how this de jure right to paid leave of absence translates into practice and explicitly take into account the nature of the industrial relations participation regime. We find the right of exemption to make no difference in cooperative employment relations, but to develop its bite in adversarial rela-tions, i.e. when – without legal enforcement – the legislator’s intent would not be realized.

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File URL: http://repec.business.uzh.ch/RePEc/iso/ISU_WPS/147_ISU_full.pdf
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Bibliographic Info

Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0147.

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Length: 22 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:iso:wpaper:0147

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Related research

Keywords: Works councils; employment relations; de facto and de jure consequences of legal regulations;

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References

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  1. Hirsch, Boris & Schank, Thorsten & Schnabel, Claus, 2009. "Works Councils and Separations: Voice, Monopoly, and Insurance Effects," IZA Discussion Papers 4126, Institute for the Study of Labor (IZA).
  2. Steffen Mueller, 2009. "Are the firm owners really worse off with a works council?," Working Papers 081, Bavarian Graduate Program in Economics (BGPE).
  3. 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, October.
  4. Olaf H¸bler & 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, 09.
  5. Addison, John T. & Schnabel, Claus & Wagner, Joachim, 2003. "The course of research into the economic consequences of German works councils," Discussion Papers 22, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  6. 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.
  7. 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, 09.
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Citations

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Cited by:
  1. Uwe Jirjahn & Jens Mohrenweiser, 2013. "Active Owners and the Failure of Newly Adopted Works Councils," Research Papers in Economics 2013-04, University of Trier, Department of Economics.

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