Works councils and the digitalisation of manufacturing: Opportunity or threat for their power position?

Abstract

In the course of the so-called ‘digital transformation’, the digitalisation of manufacturing is on the agenda in many companies. Are works councils, as an important form of workplace representation of employees’ interests, prepared to bring employees’ interests into company digitalisation processes, and does this affect their own position of power? To answer these questions, four in-depth qualitative case studies of works councils from German industrial companies are conducted. The results show that works councils can rely on important resources in the bargaining of digitalisation processes. Through the combination of resource use with other factors, such as the perception of digitalisation and the (un)willingness of management to involve works councils, three different constellations can be identified under which dealing with digitalisation represents an opportunity or a threat for works councils.

Collective regulation and the future of work in the digital economy: Insights from comparative employment relations

“…This theme of framing is central to research by Rothstein (2019, 2021) on worker mobilization in the information technology sector. He compared tech worker responses to downsizing at two German (2019) and two US (2021) firms.…”

“…Are different framing strategies by worker representatives important tools in responding to technological change in these traditional settings? A study by Rego (2021) examined works council responses to digitalization in German manufacturing workplaces. She argues that digitalization introduces a zone of uncertainty, and works councils were better able toat least partiallycontrol this zone where they had both strong resources and a high strategic awareness concerning both the importance of the issue and their own goals.…”

Trade unions, digitalisation and country effects: A comparative study of banking in Norway and the UK

“…At the same time, unions in countries that lack a supportive environment may still be able to exert influence. Union power in different sectors and workplaces depends partly on the extent of these institutional supports but also on structural and associational power (Refslund and Arnholtz, 2022; Rego, 2022; Wright, 2000). Structural power is based primarily on workers’ labour market position and location within the organisation and value chain.…”

The relationship between works councils and firms’ further training provision in times of technological change

“…Management's willingness to involve works councils in the further training process depends on the technological equipment (Rego, 2021). Staples and Whittall (2021) remark that the traditional co‐determination habitus of works councils, which is reactive and defensive, makes them reluctant to ‘move with the times’ and fear of ICT remains.…”

“…Since internal networking is an important step for works councils to gain required knowledge (e.g. by getting information from expert teams) to stay up to date (Rego, 2021), the necessary flow of information to works councils could also be hindered in firms above the industry level of technology, which tend to offer more remote work. The Covid‐19 pandemic has shown that more remote work could make within‐firm communication more difficult (Yang et al., 2022).…”