The reform of the German works constitution act

Abstract

"Since 1920 the thrust of German law on workplace codetermination has changed on a number of occasions. In the latest swing of the legislative pendulum, the formation of works councils has been facilitated and their authority strengthened. The present paper outlines the terms of the new Works Constitution Reform Act and evaluates the case for it. First, we provide new information on the incidence and coverage of works councils. Second, we review the evidence on the effect of works councils on firm performance, focusing on some new results based on matched plant data. If the evidence on works council frequency points to a codetermination deficit, any such shortfall does not appear to have negative consequences for the workplace productivity, profitability, and employment." (Author's abstract, IAB-Doku) ((en))

Cite article

Addison, J., Bellmann, L., Schnabel, C. & Wagner, J. (2002): The reform of the German works constitution act. A critical assessment. (Universität Erlangen, Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik. Diskussionspapiere 16), Erlangen u.a., 34 p.