Deregulation of the German Industrial Relations System via Foreign Direct                Investment: Are the Subsidiaries of Anglo-Saxon MNCs a Threat for the Institutions                of Industrial Democracy in Germany?

Schmitt, Matthias

doi:10.1177/0143831x030243003

Cited by 30 publications

(26 citation statements)

References 42 publications

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“…Works councils have attracted considerable attention as an alternative form of worker representation to improve both the quality of (Cooke, 1997;Bognanno et al, 2005;Hamm and Kleiner, 2007). Other studies investigate the effect of FDI on domestic unionization (Cooke, 2001;Dreher and Gaston, 2007;Slaughter, 2007) and the desire of workers for works councils (Addison et al, 2003;Schmitt, 2003). None of those studies examines the interaction of foreign ownership and domestic industrial relations on economic performance.…”

Section: Introductionmentioning

confidence: 99%

Non-union worker representation, foreign owners, and the performance of establishments

Jirjahn

Mueller

2012

Oxford Economic Papers

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Using German establishment data, this study provides the first econometric analysis on the interaction of establishment-level codetermination and foreign owners. Works councils are associated with higher productivity in domestic-owned establishments while they are associated with lower productivity in foreign-owned establishments. Our results conform to the notion that foreign ownership can involve strong tensions with the institutional patterns of the host country.JEL classifications: J53, J54, M54.

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Section: Introductionmentioning

confidence: 99%

Non-union worker representation, foreign owners, and the performance of establishments

Jirjahn

Mueller

2012

Oxford Economic Papers

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“…ENDNOTES 1 A handful of econometric studies examine the potential influence of national industrial relations systems on the inflow of FDI (Bognanno et al 2005, Cooke 1997, Cooke and Noble 1998, Hamm and Kleiner 2007. Other studies investigate the effect of FDI on domestic unionization (Cooke 2001, Dreher and Gaston 2007, Slaughter 2007) and the desire of workers for works councils (Addison et al 2003, Schmitt 2003. None of these studies examines the interaction of foreign ownership and domestic industrial relations on economic outcomes or HRM practices.…”

Section: Discussionmentioning

confidence: 99%

Variable Pay, Industrial Relations and Foreign Ownership: Evidence from Germany

Heywood

Jirjahn

2013

Brit J Industrial Rel

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We use a representative sample of German establishments to show that those with foreign ownership are more likely to use performance appraisal, profit sharing and employee share ownership than are those with domestic ownership. Moreover, we show that works councils are associated with an increased probability of using each of the three practices when under domestic ownership but not when under foreign ownership. These results inform the on-going debate over institutional duality, the extent to which foreign firms adopt uniform practices independent of local institutions and the extent to which they adapt and participate in those local institutions. Terms of use: Documents in EconStor may

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“…Some authors have asserted that they function as 'democratic' and 'representative' institutions (Schmitt 2003). To the extent that this is the case, US managements would be expected to avoid them as infringing their capacity to manage unilaterally.…”

Section: Work Councilsmentioning

confidence: 99%

US Multi-Nationals and the German Industrial Relations System

Croucher¹,

Singe²

2017

Human Resources, Labour Relations and Organizations

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper critically reviews literature on the behaviour of US-based Multi National Companies (MNCs) in Germany in relation to the historic institutions of the German labour market: works councils and industry wide collective bargaining. The German system is becoming increasingly company-rather than sectorally centred, and US-based companies have reinforced a wing of German employer opinion seeking to further these developments. Surveys show US-based companies generally accepting works councils and sectoral bargains but case study evidence also shows them seeking to weaken links with parts of the system external to the company. A typology is proposed and it is argued that many US-based companies appear to follow a 'formal compliance/content avoidance dichotomy' tending to exacerbate the system's existing tendencies towards disarticulation. They also tend to explore all options available to them within the existing system. A research agenda is suggested. Terms of use: Documents in EconStor may

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Deregulation of the German Industrial Relations System via Foreign Direct Investment: Are the Subsidiaries of Anglo-Saxon MNCs a Threat for the Institutions of Industrial Democracy in Germany?

Cited by 30 publications

References 42 publications

Non-union worker representation, foreign owners, and the performance of establishments

Non-union worker representation, foreign owners, and the performance of establishments

Variable Pay, Industrial Relations and Foreign Ownership: Evidence from Germany

US Multi-Nationals and the German Industrial Relations System

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