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Carolin Fulda / Hagen Lesch IW-Trends No. 3 1. August 2023 Forms of Employee Participation and Conflict Management in the Workplace

An analysis based on the IW Personnel Panel showed which topics of conflict emerged in the workplace and how these conflicts were resolved. According to this data from 2022 works councils were present in 11 per cent of all companies.

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Forms of Employee Participation and Conflict Management in the Workplace
Carolin Fulda / Hagen Lesch IW-Trends No. 3 1. August 2023

Forms of Employee Participation and Conflict Management in the Workplace

German Economic Institute (IW) German Economic Institute (IW)

An analysis based on the IW Personnel Panel showed which topics of conflict emerged in the workplace and how these conflicts were resolved. According to this data from 2022 works councils were present in 11 per cent of all companies.

Another 12.7 per cent had an alternative representative body (ARB). The key points of contention were working overtime, the wage rate applicable for specific jobs and reorganisation within the firm. In comparison, these and other conflicting topics arose less frequently in companies with no collective employee representation. Within establishments with a works council the intensity of conflicts was higher than in companies with an ARB or those without any collective representation. Conflicts of interest were mostly resolved internally, regardless of the form of employee participation. In order to avoid conflicts, enterprises with a works council often involved workers’ representatives at an early stage, an approach encouraged by Germany’s Works Constitution Act. However, in one out of eleven companies, most of which had a proactive works council – a works council which made use of the rights granted by Germany’s Works Constitution Act – differences were referred to the conciliation committee. Labour courts were addressed three times more often by firms with proactive works councils than by other forms of collective representation. Furthermore, those were also more likely to involve trade union officials. Firms with an ARB tended to choose the less formal approach of exploratory talks, one-on-one meetings and round tables.

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Forms of Employee Participation and Conflict Management in the Workplace
Carolin Fulda / Hagen Lesch IW-Trends No. 3 1. August 2023

Forms of Employee Participation and Conflict Management in the Workplace

German Economic Institute (IW) German Economic Institute (IW)

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CEO Manager sitzt am Arbeitsplatz und telefoniert.
Andrea Hammermann / Oliver Stettes IW-Report No. 16 28. March 2024

Orphaned executive chairs in German companies

In 2023, half of the companies in Germany reported increasing problems in filling vacancies for management positions because employees are not aiming for a career. Larger companies are less affected than small companies.

IW

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Corinna Kremers / Axel Plünnecke / Isabel Vahlhaus IW-Trends No. 3 1. August 2023

The Increasing Importance of Literacy Courses and Further Training for the Low-skilled

Digitalisation and the demographic transition are presenting companies with ever new challenges. This puts pressure on firms to be in a process of constant change, a phenomenon reflected in the growing demands they put on their low-skilled employees.

IW

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