Collective employee representation in German companies

Abstract

Purpose The purpose of this paper is to analyse the distribution and the contextual conditions of statutory and non‐statutory forms of employee representation in Germany (works councils and non‐statutory employee representation (NSRs) respectively). It aims to contribute to the debate by proposing a theoretical model which improves our understanding of why works councils and NSRs exist in companies and by presenting an empirical analysis of the explanatory factors based on representative data. Design/methodology/approach Based on a representative survey of 3,254 German private‐sector companies, descriptive statistics and regression models are calculated in order to identify the contextual conditions which promote or prevent the establishment of the different forms of employee representation. Findings The data show that the distribution of works councils and NSRs differs considerably between industries. Works councils are more likely to be found in large and relatively old traditional‐sector companies with a high union density, while NSRs have a stronghold in (new) service sectors and smaller companies. NSRs are also more likely to be found in companies where management has a positive attitude towards employee involvement. Research limitations/implications Although case studies indicate that there is a huge variety of NSRs, this study could only use a relatively broad category. Future survey research should analyse the various types of NSRs and works councils. Social implications Works councils are still the main form of employee representation and the German model of industrial relations appears to be stable in terms of firm‐level employee representation. However, with new service sectors becoming increasingly important (due to socio‐economic development), this model may be in jeopardy. Originality/value This paper extends previous research on the distribution and contextual conditions of works councils by providing a comprehensive analysis of works councils and NSRs, based on a representative survey that includes a variety of variables which have strong effects, but have not previously been examined in other studies.

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