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Institutional Transfer and Effectiveness of Employee Representation: Comparing Works Councils in East and West Germany

London School of Economics and Polltical Science

This study investigates the functioning of the new works council institution in post-Communist east Germany. Two major characteristics, cooperative relations with management and an effective representation of workers' interests, are examined in a comparative analysis in the east and west German clothing and textile industry. A survey of the works councillors provided some initial indication that works councils do not significantly differ in the west and east and have in general cooperative attitudes towards management. Moreover, a survey of unionized workers in these firms revealed an overwhelming awareness of the necessity of the works councils and a conviction that their limited effectiveness is mainly caused by the current economic constraints rather than by internal deficiencies of the new institutions. Overall, the data suggest that the works council institution in the east is developing, in only a very short time period, in essentially similar ways to works council representation in west Germany.

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