Details
| Original language | English |
|---|---|
| Pages (from-to) | 501-522 |
| Number of pages | 22 |
| Journal | Economic and industrial democracy |
| Volume | 36 |
| Issue number | 3 |
| Early online date | 27 Jan 2014 |
| Publication status | Published - Aug 2015 |
Abstract
Company-level pacts between the management and the works council are often preferred in comparison to agreements between employers’ association and unions because the former negotiating partners are better informed about the economic situation of a company and have fewer goal conflicts than the latter. Moreover, these company-level pacts might reduce the ‘hold-up’ problems which arise once specialized investment is made. Therefore, this article investigates whether such agreements affect firm-level investment. Based on the IAB Establishment Panel Survey 2001–2010 the study indicates that the adoption of a company-level pact leads to a higher investment rate than in other firms driven by reinvestment. However, the Great Recession has damped this positive influence. From the econometric analysis the article does not detect any increase in investment during the negotiation phase. After the expiration of a company-level pact, lower reinvestment and a small increase in net investment take place.
Keywords
- Deregulation of industrial relations, industrial relations, trade unions
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- General Business,Management and Accounting
- Business, Management and Accounting(all)
- Strategy and Management
- Business, Management and Accounting(all)
- Organizational Behavior and Human Resource Management
- Business, Management and Accounting(all)
- Management of Technology and Innovation
Sustainable Development Goals
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In: Economic and industrial democracy, Vol. 36, No. 3, 08.2015, p. 501-522.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Investment under company-level pacts before and during the Great Recession
AU - Bellmann, Lutz
AU - Gerner, Hans Dieter
AU - Hübler, Olaf
PY - 2015/8
Y1 - 2015/8
N2 - Company-level pacts between the management and the works council are often preferred in comparison to agreements between employers’ association and unions because the former negotiating partners are better informed about the economic situation of a company and have fewer goal conflicts than the latter. Moreover, these company-level pacts might reduce the ‘hold-up’ problems which arise once specialized investment is made. Therefore, this article investigates whether such agreements affect firm-level investment. Based on the IAB Establishment Panel Survey 2001–2010 the study indicates that the adoption of a company-level pact leads to a higher investment rate than in other firms driven by reinvestment. However, the Great Recession has damped this positive influence. From the econometric analysis the article does not detect any increase in investment during the negotiation phase. After the expiration of a company-level pact, lower reinvestment and a small increase in net investment take place.
AB - Company-level pacts between the management and the works council are often preferred in comparison to agreements between employers’ association and unions because the former negotiating partners are better informed about the economic situation of a company and have fewer goal conflicts than the latter. Moreover, these company-level pacts might reduce the ‘hold-up’ problems which arise once specialized investment is made. Therefore, this article investigates whether such agreements affect firm-level investment. Based on the IAB Establishment Panel Survey 2001–2010 the study indicates that the adoption of a company-level pact leads to a higher investment rate than in other firms driven by reinvestment. However, the Great Recession has damped this positive influence. From the econometric analysis the article does not detect any increase in investment during the negotiation phase. After the expiration of a company-level pact, lower reinvestment and a small increase in net investment take place.
KW - Deregulation of industrial relations
KW - industrial relations
KW - trade unions
UR - http://www.scopus.com/inward/record.url?scp=84938358936&partnerID=8YFLogxK
U2 - 10.1177/0143831X13511999
DO - 10.1177/0143831X13511999
M3 - Article
AN - SCOPUS:84938358936
VL - 36
SP - 501
EP - 522
JO - Economic and industrial democracy
JF - Economic and industrial democracy
SN - 0143-831X
IS - 3
ER -