Works councils and labour turnover

Abstract

"In the discussion of the problems of the German Labour Market the regulations of the dismissal protection law play an important part. In this context the role of the works councils often fi nds attention. Because of its codetermination rights the works councils can take great infl uence on the fi rm's means and rate of personnel adaptation. On grounds of the common theoretical approaches to the effects of work councils one would expect them to lower labour-turnover-rates. In our own analysis we try to get a closer look on the role of works councils by taking into consideration different forms of separations and the use of fi xed-term contracts. With the IAB-Betriebspanels as data source we compare companies with and without a works council by using matched pairs analysis. Our fi ndings go along with the results of previous studies as to the general stabilising effect of work councils on personnel policy. Beneath this surface the results do not add up to a clear picture. Especially when it comes to layoffs fi rms with work councils seem to fi nd to a certain extent different solutions. Besides this the in general lower hiring rates in companies with work councils lead to the question whether the discussion should focus more on the reluctant hiring behaviour." (Author's abstract, IAB-Doku) ((en))

Cite article

Ellguth, P. (2006): Betriebsräte und betriebliche Personalfluktuation. In: H. S. Buscher, C. Dreger & U. Walwei (Hrsg.) (2006): Institutionen und Arbeitsmarkt : Messkonzepte, Wirkungszusammenhänge und internationaler Vergleich (Beiträge zur Arbeitsmarkt- und Berufsforschung, 304), p. 189-211.