The Perceived Fairness of Layoffs in Germany: Participation,Compensation, or Avoidance? |
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Authors: | Christian Pfeifer |
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Institution: | 1.Institute of Labour Economics, Leibniz University Hannover, Hannover,Germany |
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Abstract: | This study analyses to what extend and under what circumstances layoffs are accepted in Germany. Principles of distributive
justice and rules of procedural justice form the theoretical framework of the analysis. Based on this, hypotheses are generated,
which are tested empirically in a telephone survey conducted between East and West Germans in 2004 (n = 3036). The empirical analysis accounts for the different points of views of implicated stakeholders and impartial spectators.
Key findings are: (1) The management of a company can increase the acceptance of layoffs if the employees get some participation
rights. (2) For impartial spectators generous compensation for those made redundant leads to a higher degree of perceived
fairness. But job alliances are not even preferred to layoffs without measures to soften the blow of job loss. (3) Implicated
stakeholders accept job alliances and perceive wage cuts as more fair than layoffs. However, compensation does not have the
expected impact.
Christian Pfeifer is resarch assistant at the Institute of Labour Economics, Leibniz University Hannover. |
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Keywords: | distributive justice downsizing fairness job alliance layoffs procedural justice severance pay works councils |
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