Article Gold Open Access 2023

The relationship between works councils and firms’ further training provision in times of technological change

British Journal of Industrial Relations
Journal · Vol. 61 · Issue 2 · pp. 392-424
Abstract

Participating in further training is strategically important for employees to ensure their employability. Particularly for employees in low-skilled jobs, works councils — firm-level organizations that represent employees — constitute an important employee advocacy instrument in European countries, such as France and Germany. With comprehensive co-determination rights, works councils can influence firms’ hiring policies, job design and career paths (e.g. promotions). Using German firm-level data, we empirically investigate the influence of works councils on firms’ training provision for employees in firms below and above the industry level of technology. The results show that works councils have a positive effect on the percentage of employees in general, and of employees in low-skilled jobs in particular, participating in training, but only for firms below the industry level of technology. These results show the importance of works councils in supporting training in such firms and enhancing the employment prospects of employees in low-skilled jobs. In contrast, firms above the industry level of technology invest in training with or without a works council, indicating that the training interests of employers and employees are aligned. © 2022 The Authors. British Journal of Industrial Relations published by John Wiley & Sons Ltd.

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Author Affiliations
Federal Institute for Vocational Education and Training (BIBB), Bonn, Germany
Technische Universität Dortmund, Dortmund, Nordrhein-Westfalen, Germany
Funding & Acknowledgements
Friedrich-Alexander-Universität Erlangen-Nürnberg, FAU
We would like to thank two anonymous reviewers for their valuable comments and suggestions. We are indebted to Lutz Bellmann, Andries de Grip, Judith Offerhaus, Marco Seegers, Olaf Struck, and Marion Thiele for their feedback on earlier versions of this article. We are also grateful to Sabine Pfeiffer and our colleagues at BIBB, FAU and TU Dortmund for fruitful discussions and ideas. Furthermore, we would like to thank participants of the 19th ILERA World Congress, the BUIRA 2021 conference, and the WORK2021 conference for their helpful comments. Special thanks to Vanessa Stepper for her active support in the preparation of the manuscript. Open access funding enabled and organized by Projekt DEAL.
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