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Title:Unions, Works Councils and Plant Closings in Germany PDF Logo
Authors:Addison, John T.
Bellmann, Lutz
Kölling, Arnd
Issue Date:2002
Series/Report no.:IZA Discussion paper series 474
Abstract:This paper present paper provides the first results for Germany on the impact of works councils and collective agreements on plant closings, using data from the IAB establishment panel. We find evidence of a robust positive association between works council presence and plant closures. The strictures of collective agreements do not seemingly affect closings. By the same token, and contrary to some recent findings on other aspects of establishment performance, the presence of a collective agreement does not attenuate the impact of local workplace representation on closings. Our analysis does nothing to encourage a sanguine view of recent legislation in Germany that facilitates the formation of works councils and strengthens their codetermination powers.
Subjects:rent seeking
workplace representation
industry/regional collective bargaining
codetermination
plant closings
JEL:J53
J51
J58
J65
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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