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Oliver Stettes IW-Trends No. 3 8. August 2024 Areas of Conflict and the Role of Works Councils in the Digital and Green Transitions

Digitalisation processes and investments in environmental and climate protection are often accompanied by the introduction of new procedures and working methods.

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Areas of Conflict and the Role of Works Councils in the Digital and Green Transitions
Oliver Stettes IW-Trends No. 3 8. August 2024

Areas of Conflict and the Role of Works Councils in the Digital and Green Transitions

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

Digitalisation processes and investments in environmental and climate protection are often accompanied by the introduction of new procedures and working methods.

56 per cent of companies report that implementing such innovations often leads to workplace conflicts as a result of the reorganisation they involve. In four out of ten firms, disputes between management, employees and the works council, and within the workforce itself, revolve around such aspects of work organisation as personnel planning and the use of flexible forms of employment. In 46 per cent of enterprises currently engaged in reorganisation, the classification of jobs is the subject of heated discussion. Econometric analyses of the 29th wave of the IW Personnel Panel conducted by the German Economic Institute in 2022 show that there are only certain conditions under which works councils can mediate and mitigate the friction caused by digital and ecological change. Nor is there any evidence that companies with worker representation are more active in digitalising their processes or more committed to implementing climate and environmental protection. There is no significant difference between enterprises with and without worker representation in the number of digital technologies they have recently introduced or the environmental and climate protection measures currently in place. The thesis that the digital and green transitions necessarily require an increase in the number of works councils and an expansion of workers’ representation rights therefore lacks empirical support.

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Areas of Conflict and the Role of Works Councils in the Digital and Green Transitions
Oliver Stettes IW-Trends No. 3 8. August 2024

Areas of Conflict and the Role of Works Councils in the Digital and Green Transitions

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

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Determinants of personnel planning in Germany
Michael Grömling / Stefanie Seele IW-Report No. 27 21. May 2024

Determinants of personnel planning in Germany

The German labor market has been growing since 2005. The dip in the wake of the coronavirus pandemic between 2020 and 2022 is an exception, as the German labor market has reached a record level of 45.9 million people in employment by 2023.

IW

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Carolin Fulda / Oliver Stettes IW-Report No. 25 10. May 2024

What factors influence the career ambitions of people with disabilities?

Many companies in Germany report having difficulties not only in recruiting employees, but also in filling vacant management positions.

IW

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