Codetermination at the Enterprise Level

Abstract

Up to this point we have examined the effects of betriebliche Mitbestimmung, namely, the consequences for firm performance of worker representation in works councils at establishment or plant level. Now we turn to consider the impact of Unternehmensmitbestimmung, or worker representation on company boards. Inevitably this more aggregative consideration will compound the effects of codetermination at plant level. Since to all intents and purposes firms with worker directors will have works councils, there has been no attempt to separate out the effects of each. This should be borne in mind in what follows.