Participation in Decision-making at the Plant Level: Reflections on the German Experience

Abstract

Plant level participation because of its location offers larger opportunities to influence decisions than participation on the job but falls short of providing access to company decision arenas. Legal institutional regulations become important because of the specific characteristics of this kind of involvement in decision-making of dependent labor. Therefore the German Framework is described and discussed with democratic conceptual, social science and new institutional economics perspectives in mind. The findings show the restrictions of plant level participation but—at least for the German case—indicate that differences in interest tend to be expressed and modify decisions. An evaluation of effects on business activities nevertheless does not indicate systematic disadvantageous economic consequences, there might even be positive results in terms of efficiency and effectiveness.