Flexible collective bargaining agreements: Still a moderating effect on works council behaviour?

We analyse the interaction between different labour market institutions in Germany, namely, industry‐level bargaining and firm‐level codetermination by works councils. In particular, we are interested in the moderating effect of flexibility measures on the link between the existence works councils and collective agreements on wages and productivity. In presence of institutional changes, the question is whether works councils in covered plants still generate rather than redistribute rents, given recent decentralisation processes in the German system of industrial relations. We augment a theoretical model to provide hypotheses, which are then tested using empirical analysis of representative German plant level data. We find that the existence of flexibility provisions in collective bargaining agreements does not alter the effect of works council on firms' wages. We find, however, that with flexibility provisions works council presence is associated with higher productivity levels than without such provisions. These findings, however, depend on the level of collective bargaining: they can only be observed in plants covered by industry‐level contracts, but do not hold in plants covered by firm‐level contracts.     

Collectivism versus individualism in Dutch employment relations

From a very centralistic and collectivistic tradition after World War Two, Dutch employment relations now show a trend towards radical decentralisation and individualisation. What might be the consequences of this trend for labour relations? Do developments still fit within a movement towards ‘organised decentralisation’ or will the existing system of labour relations be hollowed out and destroyed? And what will be the consequences for ER management at company level? We present empirical data on how companies deal with their decentralised and individualised employment relations. It appears that, in the main areas such as labour contracts, working time arrangements, reward systems and development plans, decentralisation and individualisation are taking place. It has also become clear that management as well as workers support this and that a new form of negotiation between them is developing at workplace level, resulting in what we call ‘third contracts’ that are additional to the initial labour contract and the collective agreement. Our results also highlight the pragmatic way in which companies deal with these decentralised and individualised employment relations, which, nevertheless, remain linked to the national and collective levels of bargaining. Within the multilevel system of Dutch employment relations a new balance between collectivism and individualism is emerging.     

Patterns,ideologies and strategies of non‐statutory employee representation in German private sector companies

Non‐statutory firm level employee representation (NSR), which in contrast to legally based works councils is composed of voluntary patterns, is by now only rarely recognised in German labour relations debate and research. Based on case studies, the article analyses the establishment, modes of operation and participation outcome of NSRs in German private sector companies. While previous NSR research in countries such as Britain and the United States mainly focused on employer‐initiated representation plans, the array of NSRs in German companies appears to be broader: Four types of NSRs are introduced, and a theoretical account is developed, which emphasises cultural–institutional arguments and actors strategies. Hence, it is argued that while NSRs appear to be instruments of management seeking to effectively organise company interest regulation, they strongly reflect cultural conditions and ideologies of non‐statutory employee representation.     

Conformance and Deviance: Company Responses to Institutional Pressures for Corporate Social Responsibility Reporting

This paper analyses how large Danish companies are responding to new governmental regulation which requires them to report on corporate social responsibility (CSR). The paper is based on an analysis of 142 company annual reports required by the new Danish regulation regarding CSR reporting, plus 10 interviews with first‐time reporting companies and six interviews with companies that failed to comply with the new law. It is concluded that coercive pressures from government have an impact on CSR reporting practices. Further, the analysis finds traces of mimetic isomorphism which inspires a homogenisation in CSR reporting practices. Finally, it is argued that non‐conformance with the new regulatory requirements is not solely about conscious resistance but may also be caused by, for example, lack of awareness, resource limitations, misinterpretations, and practical difficulties. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

How the past of outsourcing and offshoring is the future of post-pandemic remote work: A typology,a model and a review

Information and communication technology (ICT) challenges traditional assumptions about the capacity to manage work beyond organizational and physical boundaries. A typology connects a variety of non-traditional work organizations made possible by ICT, including offshoring, outsourcing, remote work, virtual companies and platforms. A model illustrates how new technology serves as a proximate cause for a revision of social contracts between capital, labour and government reached through bargaining and how external shocks such as the COVID-19 pandemic, the institutional environment and limitations in practice influence how technology changes the organization of work. An historical case study of the New Deal Industrial Relations System illustrates the general features of the model for tackling major transformations in the organization of work. A review of the outsourcing and offshoring literature provides examples of how features of the model will potentially influence the future of post-pandemic remote work.     

Small change,big impact? Organisational membership rules and the exit of employers' associations from multiemployer bargaining in Germany

German employers' associations first introduced a so‐called “bargaining‐free” membership (BFM) category in 1990, giving companies the option to join and access services while avoiding the obligations arising to regular members from industry‐level collective agreements with unions. To explain how this phenomenon contributes to change in the German political economy, we investigate why some associations offer their members BFM status whereas others have refused to introduce this option. Controlling for influences such as size and industry, our multivariate analysis of survey data shows that four sets of influences are positively associated with BFM: the role of courts' judicial decisions as “door openers,” structural characteristics of diverging business environments, the evaluation of multiemployer bargaining by the leadership of the association, and the strategic choices of associations.     

The making of the German minimum wage: a case study of institutional change

In the more recent dualistic theories, Germany is cited as an example of a less solidaristic equilibrium, in which ‘producer coalitions’ between core workforces supposedly unaffected by deregulation and their employers prevented the introduction of a minimum wage. The present article shows that such an equilibrium never existed. Core workforces are being threatened by the outsourcing of jobs to the low‐wage sector. This threat created the breeding ground for a joint campaign by manufacturing and service unions for a minimum wage, which made it possible to amalgamate the unions' considerable resources at company level, their strength being derived from the German system of codetermination. Under pressure from the manufacturing unions in particular, the arrangements for the minimum wage follow, as far as possible, the traditions of free collective bargaining. As a result, the social partners in Germany have a considerably stronger influence on the minimum wage than those in the UK.     

The effects of bargaining power on trade credit in a supply network

We develop a multi-tier supply network model, rooted in social network theory, to evaluate the effect of bargaining power on trade credit and to track the effect of buyers' trade credit on suppliers' trade credit. We apply social network analysis to measure companies' bargaining power in the supply network of Hennes & Mauritz AB (H&M, the Swedish clothing retailer). The results show that the buyer's bargaining power significantly affects the choice of trade credit, and that the supplier's “upstreamness” is significantly associated with its trade credit. We find limited evidence to support the notion of a financial bullwhip effect, a result that merits further research, since this study is limited to the network of one company up to its fourth tier of suppliers in one financial year. Our results can be applied by companies seeking to control their cash flow and, therefore, the financial pressure within their supply network. This study contributes to the literature by bringing social network measures into the buyer–supplier financial flow, as well as offering one of the first empirical examinations of the propagation of financial pressure in a multi-tier supply network.     

央企财务松懈与超额员工责任研究

中央企业员工薪酬水平过高是中央企业在财务松懈状态下过度承载员工责任的一种表现.拉克尔系数是反映企业员工薪酬水平是否合理的一个重要财务指标,它能够体现劳资关系是否协调.在对财务松懈和企业社会责任进行分析的基础上,从自由现金流量与负债率两个角度对中央企业上市公司财务松懈问题进行研究后发现,财务松懈的中央企业上市公司平均拉克尔系数为48.3656％,远高于39.395％这一临界值,这说明中央企业上市公司在承担员工责任方面过于“积极”.     

'More is not necessarily better': the relationship between the quantity and quality of training efforts

International comparisons indicate that, on average, Belgian companies spend less on training than their French, German and Dutch counterparts. Encouraging companies to commit to training has consequently been an important policy goal over the last few years. One notable aspect of the policy to encourage training efforts by companies is that the effort is always represented in terms of the resources invested (input), not in terms of the learning achieved (output) or the quality of training programmes (throughput). Government policy is aimed at increasing the level of investment in company training. One of the questions we wish to investigate is whether this input-oriented approach to the training issue is actually effective. Whether companies will succeed in raising human capital to ever-increasing levels may depend not only (and maybe not even chiefly) on the extent of financial investment in training. The investment level does not necessarily determine the quality of the training processes developed by companies. Therefore, this paper focuses on the following research questions: (1) to what extent do companies monitor the systematic development of sufficiently effective training processes? In other words, is qualitative under-investment an issue, alongside financial under-investment? (2) Is the level of financial investment in company training correlated to the quality of training processes? The empirical data confirm that a kind of 'qualitative' under-investment can be reported and that the relationship between the level of investment in training and the quality of the training programmes is weak.     

Workplace unionism under decentralised bargaining in France: a case study of the CGT in the car industry

Considering recent theoretical accounts on the trajectory of French unionism under localised bargaining, this article examines potential consequences for the country's traditionally largest radical union, Confédération Générale du Travail (CGT). Deploying a case study of CGT at PSA Peugeot Citroёn and Renault in the years since the 2008 automotive crisis, the article observes a persistent pattern of militant opposition within company and plant union sections. Company bargaining structure, interunion reformist collaboration and electoral considerations are identified as workplace mechanisms reinforcing CGT actions at this level.     

Zipf's Law for Cities and Beyond: The Case of Denmark

Zipf's law for cities is one of the most conspicuous and robust empirical facts in the social sciences. It says that for most countries, the size distribution of cities must fit the power law: the number of cities with populations greater than S is inversely proportional to S. The present paper answers three questions related to Zipf's law: (1) does the Danish case refute Zipf's law for cities?, (2) what are the implications of Zipf's law for models of local growth?, and (3) do we have a Zipf's law for firms? Based on empirical data on the 61 largest Danish cities for year 2000, the answer to (1) is NO—the Danish case is not the exception which refutes Zipf's law. The consideration of (2) then leads to an empirical test of (3). The question of the existence of Zipf's law for firms is tested on a sample of 14,541 Danish production companies (the total population for 1997 with 10 employees or more). Based on the empirical evidence, the answer to (3) is YES in the sense that the growth pattern of Danish production companies follows a clean rank‐size distribution consistent with Zipf's law.     

Vertical Integration and Exclusive Behavior of Insurers and Hospitals

We examine vertical integration and exclusive behavior in health care markets in which insurers and hospitals bilaterally bargain over contracts. We employ a bargaining model of two hospitals and two health insurers competing on premiums. We show that asymmetric equilibria exist in which one insurer contracts one hospital whereas the other insurer contracts both hospitals, even if all players are equally efficient in their production. Asymmetric equilibria arise if hospitals are sufficiently differentiated. In these cases, total industry profits increase and consumer welfare decreases in comparison to the case in which both insurers have contracts with both hospitals. Vertical integration makes these equilibria possible for a wider range of parameters.     

Foreign Direct Investment in the UK 1985–1994: The Impact on Domestic Management Practice

Foreign direct investment (FDI) into the UK has grown considerably in recent years. US, French, German and Japanese companies have generally accounted for the largest share of this FDI. In addition to greenfield and expansion investment, a major vehicle for inward FDI has been the acquisition of UKcompanies.
This paper examines whether nationally distinct approaches to management were introduced, following acquisition, among a sample of 201 UK subsidiaries of French, German, Japanese,US and UK companies. It provides data on the extent of changes and the post-acquisition influence of the new parent, comparing changes between the four foreign nationalities and a UK control group.
The study indicates that the process of being acquired and controlled by a foreign parent company was often followed by significant changes in management practice. Some changes were common to all acquisitions, including those by UK companies. A shift towards performance-related rewards and a stronger quality emphasis in operations are two examples. In addition, there was also evidence of effects which differed between nationalities. These conformed to accepted characterizations of national management practice in the case of Japanese and US acquirers, but less so in the case of French and German acquisitions. The findings suggest that present views of French and German management practice require further investigation.     

A comparative analysis of corporate reporting on ethical issues by UK and German chemical and pharmaceutical companies

This paper reports on a study of reporting on ethical issues in the corporate annual reports of the largest UK and German chemical and pharmaceutical companies between 1985 and 1995. The study is both comparative and longitudinal in nature, examining in detail how ethical reporting practices developed differently in two Western nations. Despite the similarity in industry affiliations of the companies in the two samples, the study found substantial differences in the nature and patterns of reporting both across time and between the two countries studied. In particular, German companies reported more information and that reporting ‘matured’ to its current level at an earlier date. The paper explores some of the factors which might be thought to have caused this diversity in reporting between the two countries including: industry initiatives; extent of regulations demanding ethical responsibility; and other social and political pressures.     

Liberalising the German model: institutional change,organisational restructuring and workplace effects

Institutional change at supranational, European Union level affects national and firm level institutions in various ways. This article traces effects of liberalisation measures in the airport industry enacted in two airport firms in Germany. The study, based on qualitative empirical research, found that EU liberalisation facilitated company creation of subsidiaries (subsidiarisation) and elevated shareholder interest in corporate governance. These factors affected institutional practices and cultural norms within the German industrial context that in turn influenced significant alterations in employment and workplace relations. Considerable disruption of the German social partnership model of corporate governance and industrial relations was observed. However, in addition to patterns of convergence towards neoliberal practices and outcomes frequently observed in Anglo‐Saxon systems, the study found some elements of effective retention of cultural institutional resources of the German model. Both ‘path departure’ and social embeddedness appear to coexist.     

媒体类网络公司的社会责任评价指标体系的构建研究

随着信息技术的飞速发展,媒体类网络公司已迅速成为传播新闻信息的重要阵地,网络媒体的社会责任是向大众传播一种积极向上的力量,而目前媒体类网络公司存在的种种道德危机充分暴露出其严重缺乏社会责任感。本文针对媒体类网络公司社会责任的现状,构建一套媒体类网络公司社会责任评价体系,其中包括5个一级指标、13个二级指标、26个观测点,并结合德尔菲专家调查法和模糊综合评价法建立了评价模型,这对媒体类网络公司提升社会责任和经营管理水平有重要的意义。     

Institutional effects in the adoption of e-business-technology: Evidence from the German automotive supplier industry

This article analyzes the adoption of B2B-e-business technology in German automotive supplier companies during the internet hype period, i.e. in the very early stage of technology diffusion. While from the outset e-business was assumed to be used by companies in order to increase efficiency and reduce costs, some previous IOS research and theoretical considerations suggest that both efficiency and environmental expectations can be important reasons for companies to implement e-business. On this backdrop, the paper analyzes the reasons for e-business technology adoption, focusing on the explanatory value of institutional factors like mimesis, coercion, and normative pressures. Theoretically based hypotheses are developed and tested using regression models with a quantitative data set of more than 1900 companies.The article tries to make an innovative contribution to the field of IOS research, first, by drawing on theories of organizational structuring — new institutionalism, social psychology, and transaction cost economics; second, variation of adoption rationales in different types of companies and different business functions inside a company is taken into account.It appears that the adoption of e-business is explained by external pressures from other customers, bandwagon effects and herding behavior during the e-business hype, and expectations and interests of professionals inside a company. In the ‘core’ areas of a firm, efficiency rationales play an important role, too. The data reveals that the reasons of e-business usage differ significantly by department and company type.     

Systemic circular business model application at the company,supply chain and society levels—A view into circular economy native and adopter companies

This study contributes to the conceptualization of a sustainable circular business model (CBM), the application of the circular economy (CE) by companies. The study utilized a three-level framework adapted from the CE literature with company (micro), supply chain (meso) and society (macro) levels. This multiple-case study in the textile industry included two types of companies operating in the CE: companies founded on the sustainable principles of a CE (natives) and companies transitioning to a CE from the linear economy (adopters). The findings show that the adopters emphasized long-term economic sustainability on a company level and implemented CE elements to varying degrees on all three levels. The natives pursued business decisions from environmental and social sustainability standpoints, and the three levels were integral in their systemic approach to a CE. The study highlights two key claims: established operational structures and economic volition hindered adopters in their systemic CE implementation, and an integral part of the CBM for natives was a proactive approach towards the society level.     

The Extent and Evolution of Productivity Deficiency in Eastern Germany

Since the German re-unification in 1990, Eastern Germany has been a transition economy. After a phase of catching up in productivity with Western Germany from 1991 to 1996, growth rates in the producing sector have dropped below those in Western Germany since 1997. This study investigates whether this macroeconomic picture holds at the microeconomic level. For the special case of Eastern Germany, I suggest identifying productivity gaps by using comparable Western German firms as a “productivity benchmark”. Applying an econometric matching procedure allows to study the productivity gap at the firm level in detail. Besides labor and capital, other factors like innovation and firm ownership are taken into account. The macroeconomic facts are broadly confirmed: a significant gap has remained in recent years. Moreover, Eastern German innovators perform worse than their Western German pendants, and firms owned by Western German or foreign companies perform better than those owned by Eastern German entities.