Works councils and plant closings in Germany

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." (Author's abstract, IAB-Doku) ((en))

Cite article

Addison, J., Bellmann, L. & Kölling, A. (2004): Works councils and plant closings in Germany. In: BJIR, Vol. 42, No. 1, p. 125-148.