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Kooperation zwischen Betriebsrat und Management / Cooperation between Works Council and Management: Die Sicht beider Seiten und deren Folgen / The View from Both Sides and its Consequences

Author

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  • Dilger Alexander

    () (Westfälische Wilhelms-Universität Münster, Wirtschaftswissenschaftliche Fakultät, Institut für Ökonomische Bildung, Schlossplatz 4, D-48149 Münster, Germany)

Abstract

There are different kinds of works councils. They can be cooperative or antagonistic for example. There are also different kinds of management. The managers can be friendly or unfriendly to the workers and the works council representing them. Here the mutual relationship between works council and management is analysed. To this end two data sets are connected, the NIFA-Panel with information about mechanical engineering plants in Germany given by the management and the Bochumer survey of works councils in some of these plants. A new typology of the relationship between the works council and the managers of a firm is derived from these combined data. The effects of a positive, neutral or negative relationship on different turnover rates, product innovations and earnings of the firms are empirically analysed. The results are in accordance with prior studies using only separated data for works councils or management. Concretely, turnover and earnings are mostly lower and innovations more probable as long as any kind of works council exists. The kind of relationship influences the magnitudes of these effects and their statistical significance. A positive relationship reduces the departure rate most of all, a negative relationship has the strongest effect on innovations and, unexpectedly, an inconsistent relationship is best for earnings.

Suggested Citation

  • Dilger Alexander, 2006. "Kooperation zwischen Betriebsrat und Management / Cooperation between Works Council and Management: Die Sicht beider Seiten und deren Folgen / The View from Both Sides and its Consequences," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(5), pages 562-587, October.
  • Handle: RePEc:jns:jbstat:v:226:y:2006:i:5:p:562-587
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    References listed on IDEAS

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    1. Sven Jung & Claus Schnabel, 2011. "Paying More than Necessary? The Wage Cushion in Germany," LABOUR, CEIS, vol. 25(2), pages 182-197, June.
    2. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "German works councils old and new: incidence, coverage and determinants," Discussion Papers 10, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    3. Addison, John T & Schnabel, Claus & Wagner, Joachim, 1996. "German Works Councils, Profits, and Innovation," Kyklos, Wiley Blackwell, vol. 49(4), pages 555-582.
    4. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "German works councils old and new: incidence, coverage and determinants," Discussion Papers 10, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    5. John Addison & Stanley Siebert & Joachim Wagner & Xiangdong Wei, 2000. "Worker Participation and Firm Performance: Evidence from Germany and Britain," British Journal of Industrial Relations, London School of Economics, vol. 38(1), pages 7-48, March.
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    Cited by:

    1. Christian Pfeifer, 2011. "The Heterogeneous Economic Consequences of Works Council Relations," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 131(1), pages 59-71.
    2. Gralla, Rafael & Kraft, Kornelius, 2012. "Higher Wages, Overstaffing or Both? The Employer's Assessment of Problems Regarding Wage Costs and Staff Level in Co-Determined Establishments," IZA Discussion Papers 7021, Institute for the Study of Labor (IZA).
    3. 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, pages 420-435.

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