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Do works councils raise or lower firm productivity?

By Olaf H\ufcbler


The German model of co-determination (Mitbestimmung) with works councils, in which workers are involved in the management of a company, was a role model for other countries for many years. However, since the 1990s the appeal of works councils has been declining, to the extent that now even employees are sometimes voting against representation. This was recently demonstrated by workers at the Volkswagen factory in Chattanooga, Tennessee, who voted against union representation. An important question for firms and for policymakers is whether the adoption of a works council has a positive influence on a firm\u2019s productivity and what the consequences are for a firm's profits

Topics: D2, D7, D83, J21, J31, J5, ddc:330, works councils, productivity, employment, wages and profit effects
Publisher: Bonn: Institute for the Study of Labor (IZA)
Year: 2015
OAI identifier:
Provided by: EconStor

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