Co-determination Rights Research Articles

It’s the robots, stupid? Automation risk, labour market resources and incumbent support in Europe

As automation challenges labour markets across Europe, research in political science is pointing towards the socially corrosive link between such technological change and political dissatisfaction. In this paper, I extend this research agenda by looking at the relation between automation risk and incumbent support in 20 European countries between 2012 and 2018. I find strong support for the notion that workers with substantial exposure to automation risk are more likely to reject governments at the ballot box. Importantly, however, these findings indicate that this anti-incumbent voting is less prevalent among theoretically at-risk workers who enjoy some level of protection, in the form of permanent contracts, co-determination rights or higher educational attainment. As such, this paper argues that technological occupation risk should be seen as feeding into broader labour market risks faced by voters.

Negotiating limits on algorithmic management in digitalised services: cases from Germany and Norway

Artificial intelligence (AI)-based algorithms are increasingly used to monitor employees and to automate management decisions. In this article, we ask how worker representatives adapt traditional collective voice institutions to regulate the adoption and use of these tools in the workplace. Our findings are based on a comparative study of union and works council responses to algorithmic management in contact centres from two similar telecommunications companies in Germany and Norway. In both case studies, worker representatives mobilised collective voice institutions to protect worker privacy and discretion associated with remote monitoring and workforce management technologies. However, they relied on different sources of institutional power, connected to co-determination rights, enforcement of data protection laws, and labour cooperation structures.

Staff councils and their power resources – Workplace representation in German municipalities

PurposeThe paper examines the work and interactions of staff councils in German municipalities and the power resources the staff councils have at disposal. The paper also discusses the relationship between staff councils and trade unions and suggests a modification of the prominent concept of the “dual system of interest representation” to a “trimorphic system of interest representation” for the public sector.Design/methodology/approachThe paper draws on case studies of staff councils in municipalities and administrative districts, relying on semi-structured interviews, group discussions and document analysis.FindingsStaff councils operate in an extensively regulated field. The major task of staff councils is to monitor that employers follow collective agreements and the law. Staff councils' existence and co-determination rights of staff councils are provided by law; however, staff councils not only use institutional, but also organisational and – occasionally – political power resources, whereas structural and societal power resources are rarely actively used. The relationship between staff councils and trade unions often plays an important role and is in many cases characterised by mutual support.Originality/valueAlthough staff councils are a widespread and a very interesting type of representation because staff councils represent both employees and civil servants who are employed in two distinctly different employment systems, staff councils are widely under-researched. This paper enriches empirical knowledge about labour relations and introduces the notion of a “trimorphic system of interest representation”.

Coevolution of job automation risk and workplace governance

This paper analyses the interplay between the allocation of authority within firms and workers’ exposure to automation risk. We propose an evolutionary model to study the complementary fit of job design and workplace governance as resulting from the adoption of worker voice institutions, in particular employee representation (ER). Two organizational conventions are likely to emerge in our framework: in one, workplace governance is based on ER and job designs have low automation risk; in the other, ER is absent and workers are involved in automation-prone production tasks. Using data from a large sample of European workers, we document that automation risk is negatively associated with the presence of ER, consistently with our theoretical framework. Our analysis helps to rationalize the historical experience of Nordic countries, where simultaneous experimentation with codetermination rights and job enrichment programmes has taken place. Policy debates about the consequences of automation on labour organization should avoid technological determinism and devote more attention to socio-institutional factors shaping the future of work.

Coevolution of Job Automation Risk and Workplace Governance

In current debates about job automation, technology adoption is framed as a politics-neutral decision driven by the search for technical efficiency. Discussions about the nature of job design (i.e. the content and distribution of tasks within firms) and its associated automation risk are usually devoid of institutional context. However, job design may be affected by the way firms are governed. A critical feature of workplace governance is the extent to which decision making is shared by capital owners and workers via institutionalized forms of employee representation (ER). In this paper, we propose an evolutionary model to study the complementary fit and endogenous dynamics of job design and workplace governance. We show that two technological-political conventions are likely to emerge: in one of them workplace governance is based on ER and job designs have low automation risk; in the other, ER is absent and workers are involved in automation-prone production tasks. We explore the validity of the theory by using data from a large sample of European workers including detailed information on occupations, task environment, working conditions as well as presence of ER. Results are consistent with the theory: automation risk is negatively associated with the presence of ER. Our analysis can be useful to rationalize the historical experience of Nordic countries, where simultaneous experimentation with codetermination rights and job enrichment programs (supplemented by nationwide institutional reforms) seem to have had enduring consequences in the way these countries confront technological challenges. Policy debates about automation should avoid technological determinism and devote more attention to socio-institutional factors shaping the future of work.

The Legislative Framework for Working Conditions in the Dutch Ready-Made Garment Sector

This article sets out the legislative framework with regard to labour law provisions concerning working conditions that apply to Dutch employers and employees operating and working in the ready-made garment (RMG) sector in the Netherlands and discusses the challenges that employees may face in the sector. More specifically, this article will focus on the challenges and law applicable to the retail phase and recycling phase in the supply chain of a pair of jeans and a white T-shirt. In this respect, an overview of the labour law provisions will be presented that protect a safe working environment for employees working in the sector. Dutch law contains many provisions concerning the protection of employees against poor working conditions. Among others, employers are obliged to maintain a safe working environment and reasonable working hours for their employees. Dutch labour legislation only applies to employees working in the Netherlands and therefore is of little relevance to the manufacturing phase of the RMG supply chain, which takes place abroad. However, several public and private initiatives were taken to stimulate Dutch clothing brands to exert an influence on the working conditions in the RMG producing countries. Two of these initiatives will be discussed in this article. Furthermore, this article will present which social challenges employees may face in the Dutch RMG sector, which comprise gender inequality, including equal pay and equal opportunities to occupy top management positions and co-determination rights.

Do German Works Councils Counter or Foster the Implementation of Digital Technologies?

Abstract As works councils’ information, consultation and co-determination rights affect the decision process of the management, works councils play a key role in the implementation of digital technologies in establishments. However, previous research focuses on the potential of digital technologies to substitute for labor and its impact on labor market outcomes of workers. This paper adds the role of industrial relations to the existing literature by analyzing the impact of works councils on the implementation of digital technologies. Theoretically, the role of works councils in the digital transformation is ambiguous. Using establishment data from the IAB Establishment Survey of 2016 combined with individual employee data from the Federal Employment Agency and occupational level data about the physical job exposure, empirical evidence indicates an ambivalent position of works councils towards digital technologies. The sole existence of works councils is associated with statistically significant lower equipment levels with digital technologies. However, works councils seem to foster the equipment with digital technologies in those establishments, which employ a high share of workers who are conducting physical demanding job activities. Thus, this study highlights the importance of establishment-level workforce representation for the digital adoption process within Germany.

German board-level employee representation in multinational companies: Patterns of transnational articulation

We investigate codetermination on German supervisory boards of multinational companies and pose two questions. First, under what conditions does board-level representation constitute a power resource for employee representatives? Second, how does board-level representation articulate with European Works Councils? We conclude that factors related to corporate structure – head office location, the level at which supervisory boards are established – play a decisive role in determining the power resources available to employee representatives. Articulation with European Works Councils depends on the adoption of a strategic approach whereby German employee representatives deploy the power resources derived from national codetermination rights at the transnational level, or use the mechanisms of transnational employee representation to compensate where such national power resources are lacking.

A consumer perspective on corporate governance in the energy transition: Evidence from a Discrete Choice Experiment in Germany

Numerous countries seek to decarbonize their economy. Previous research has shown that the active involvement of citizens raises the acceptance of change in the energy system. While most studies on citizen participation have focused on citizens as investors, in this paper, we take a consumer perspective. Based on a sample of more than 2000 German electricity consumers, we conduct a Discrete Choice Experiment to estimate willingness to pay for co-determination rights, transparent pricing policies, and an electricity utility's profit distribution. We find large additional willingness to pay for all of these attributes, which, in total, amount to more than a quarter of the overall electricity price per kilowatt hour. Women have a higher willingness to pay of up to one Eurocent per kilowatt hour. We discuss the implications of our findings for Germany's and the European Union's energy policy. Among other things, we conclude that governmental labeling initiatives should include participation-related information to enhance consumer welfare.

The Relational Nature of Employment Dualization: Evidence from Subcontracting Establishments

Scholars argue that the dual path to labor market flexibility protects the privileges of core workers at the expense of employees relegated to a peripheral employment sector. Yet whether core workers indeed benefit from workforce segmentation remains disputed. To scrutinize this question, I study how the wages of core workers with less than college education respond when their employer shifts employment out to subcontractors, using linked employer-employee panel data from Germany. Empirically, I find the effect of subcontracting on average to be either positive or neutral, but not negative. The presence and strength of the positive effect depends, first, on whether the type of subcontracting affords core workers with codetermination rights, second, on whether core workers are represented by a works council to exercise these rights, and, third, on whether these rights are exercised in a context that augments the bargaining position of core workers by rendering conflictual labor relations costly to the employer.

The Economic Significance of Laws Relating to Employment Protection and Different Forms of Employment: Analysis of a Panel of 117 Countries, 1990-2013

This paper presents findings from analysis of a dataset of labour laws, based on the Centre for Business Research Labour Regulation Index (CBR-LRI), which has recently been extended to cover 117 countries and the period from 1970 to 2013. The dataset shows that laws regulating different forms of employment (DFE), including part-time work, fixed-term employment and agency work, have become significantly more protective over time, in particular since the late 1990s. Employment protection laws (EPL), covering individual dismissal, collective consultation and codetermination rights, have become steadily more protective since the 1970s. Europe has seen a decline in the level of EPL since the onset of the sovereign debt crisis in 2008, but this trend is small, on average, by comparison to earlier increases in protection beginning in the 1970s, and has not been replicated in other regions. Time-series econometric analysis using non-stationary panel data methods suggests that strengthening worker protection in relation to DFE and EPL is associated with an increase in labour’s share of national income, rising labour force participation, rising employment, and falling unemployment, although the observed magnitudes are small when set against wider economic trends.

Do German Works Councils Counter or Foster the Implementation of Digital Technologies?

As works councils' information, consultation and co-determination rights affect the decision process of the management, works councils play a key role in the implementation of digital technologies in establishments. However, previous research focuses on the potential of digital technologies to sub-stitute for labor and its impact on labor market outcomes of workers. This paper adds the role of industrial relations to existing literature by analyzing the impact of works councils on the implementation of digital technologies. Theoretically, the role of works councils in the digital transformation is ambiguous. Using establishment data from the IAB Establishment Survey of 2016 combined with individual employee data from the Federal Employment Agency and occupational level data about the physical job exposure, empirical evidence indicates an ambivalent position of works councils to-wards digital technologies. The sole existence of works councils leads to statistically significant lower equipment levels with digital technologies. However, works councils foster the equipment with digital technologies in those establishments, which employ a high share of workers who are conducting physical demanding job activities. Thus, this study highlights the importance of establishment-level workforce representation for the digital adoption process within Germany.

Negotiating Flexibility: External Contracting and Working Time Control in German and Danish Telecommunications Firms

This study examines how different participation rights and structures affect employee control over working time. The analysis is based on a comparison of matched call center and technician workplaces in two major telecommunications firms in Germany and Denmark. It draws on data from semi-structured interviews with managers, supervisors, and employee representatives between 2010 and 2016. Unions and works councils in both firms agreed to a series of concessions on working time policies in the early 2010s in exchange for agreements to halt or reverse outsourcing. The authors use Lukes’ concepts of decision-making and agenda-setting power to explain these common trends, as well as later divergence in outcomes. Germany’s stronger formal co-determination rights over working time proved a critical power resource for employee representatives as they sought to re-establish employee control in new, more flexible working time models.

Teilhabe atypisch Beschäftigter: Einkommen, Sozialversicherungsrechte und betriebliche Mitbestimmung / Participation rights of atypical employed persons: Income, social insurance rights and co-determination

Abstract Die leitende Fragestellung dieses Beitrags ist, inwieweit die materielle und institutionell-rechtliche Teilhabe, die ideell mit dem Leitbild des Normalarbeitsverhältnisses verknüpft wird, auch für atypische Beschäftigungsformen gilt. Dies wird anhand der zentralen Dimensionen Einkommen, Einbeziehung in die Sozialversicherung und betriebliche Mitbestimmung insbesondere für die vom Normalarbeitsverhältnis abweichenden Beschäftigungsformen Solo-Selbstständigkeit, Werkverträge und Minijobs skizziert.

Europeanisation with Many Unknowns: National Company Law Reforms after Centros

Negative integration through the expansive interpretation of European market freedoms is said to undermine domestic social regulation – by vertically imposing a strictly liberal interpretation of EU rules and by pushing EU member states into horizontal regulatory competition. This article analyses domestic policy responses to one particularly prominent instance of negative integration: the CJEU’s case law on the freedom of establishment since its first landmark ruling on Centros in 1999. The analysis shows that national company laws have only converged downwards in one particular subfield – minimum capital requirements – but they remain strikingly diverse across, and increasingly within, member states on most other issues, such as workers’ codetermination rights. Legal uncertainty about the Court’s case law, the mixed economic incentives it provides for firms and political disagreement about appropriate policy responses leave considerable space for differential Europeanisation. The crisis adds to these uncertainties and thus reinforces the trend towards differentiation rather than convergence.

The Macro-Economic Effect of Codetermination on Income Equality

Many studies on the effect of codetermination at company-level reveal its significant influence on wage levels within companies. However, does this effect at the micro-level result in higher income equality at the macro-level as well? A cross-sectional regression analysis of data on EU and OECD countries will be used to test for the codetermination’s effect on income distribution. Assessing the impact of codetermination, a new index on codetermination strength will be introduced, combining the scope of codetermination rights with the threshold of codetermination laws. The results suggest a significant negative impact on the Gini index which indicates that codetermination rights lead to higher income equality.

The ‘Volkswagen Law’ – guarantor of extended co-determination rights and international trade union solidarity

The ‘Volkswagen Law’ – guarantor of extended co-determination rights and international trade union solidarity

Works Councils, Collective Bargaining and Apprenticeship Training

In this paper, we investigate the effects of works councils on apprenticeship training in Germany. The German law attributes works councils substantial information and co-determination rights to training-related issues. Thus, works councils may also have an impact on the cost-benefit relation of workplace training. Using detailed firm-level data containing information on the costs and benefits of apprenticeship training, we find that firms with works councils make a significantly higher net investment in training compared with firms without such an institution. We also find that the fraction of former trainees still employed with the same firm five years after training is significantly higher in the presence of works councils, thus enabling firms to recoup training investments over a longer time horizon. Furthermore, all works council effects are much more pronounced for firms covered by collective bargaining agreements.

The effects of profit sharing and worker participation on firm performance

This article summarizes recent studies concerning the effects of organizational change on fundamental economic variables. The framework applied to take account of possible selectivity effects is explained in detail. This methodology is applied to the effects of profits sharing and the legal provisions with respect to worker codetermination rights on the plant and firm level.

Erfahrungen zur Umsetzung der Gefährdungsbeurteilung bei psychischen Belastungen / Experiences with risk assessment against mental stress

Abstract Es wurden Erfahrungen zur Umsetzung der Gefährdungsbeurteilung bei psychischen Belastungen in Deutschland untersucht. Dazu konnten Schwerpunktaktionen identifiziert und ebenso bewertet werden wie Vorgehensweisen und Instrumente. Bei der erfolgreichsten Schwerpunktaktion wurden vertiefende betriebliche Fallstudien vorgenommen. Betriebsräte konnten dabei als eine „lohnende Akteursgruppe“ ermittelt werden, um die Gefährdungsbeurteilung mit psychischen Belastungen durchzusetzen. Als Erfolgsfaktoren haben sich die Nutzung der Mitbestimmungsrechte nach Betriebsverfassungsgesetz und die Unterstützung durch eine begleitende Schwerpunktaktion herauskristallisiert. Es wurde eine Implementationsstrategie zu Gefährdungsbeurteilungen bei psychischen Belastungen entwickelt, die eine modellhafte Handlungsstrategie für betriebliche Praktiker zur erfolgreichen Etablierung von Gefährdungsbeurteilungen liefert und bisherige Umsetzungsschwächen überwindet.