Works Councils and Plant Closings in Germany

John Addison, Lutz Bellmann and Arnd Kölling

British Journal of Industrial Relations, 2004, vol. 42, issue 1, 125-148

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.

Date: 2004
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https://doi.org/10.1111/j.1467-8543.2004.00307.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:brjirl:v:42:y:2004:i:1:p:125-148

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