Abstract

Prevalence and effects of co-determination in the Netherlands Based on data of the Netherlands Employers Work Survey of TNO (with about 20,000 firms in the period 2008-2014) and the Netherlands Working Conditions Survey of TNO and Statistics Netherlands (with about 150,000 employees in the period 2007-2014) this articles provides answers on questions like to what extent formal co-determination exists in the Netherlands, and what the relation is with the quality of work, the terms of employment and the firm performance. The analyses show that about 76 percent of the medium sized firms (50-249 employees) in the period 2008-2014 have a works council or a workers representation. Among the larger firms (250 employees or more) this figure is 94 percent. Hence, a quarter of the medium sized firms and 6 percent of the larger firms do not comply with the law. In the period 2008-2014 there is no increase or decrease in formal co-determination in the Netherlands. Co-determination is two to three times more often found in older than in younger firms. Probably tradition plays a role in older firms and unfamiliarity and other worries in younger businesses. Sectors were co-determination is often found are the public sector (95%), education (80%), and health care (70%). On the other hand, in hotels and restaurants (18%), agriculture (19%), construction (31%), and trade (33%) works councils and worker representations are less often found. Employees in the Netherlands are relatively satisfied with their works council or workers representation, scoring 6,5 on a scale from 1 to 10. No relations were found between the prevalence of a works council and the increase of decrease of the firm performance or the satisfaction with the terms of employment, both in the view of the employer. However, employees working in a firm with a works council or worker representation are more satisfied with their work, their income and pension, their working hours and working conditions. In addition, employees in firms with a works council or worker representation, also report more direct participation (more job consultation, more job control, with more supervisor support and less conflict).

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