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The Effects of Trust on the Preference for Decentralized Bargaining

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  • Werner Nienhueser
  • Heiko Hossfeld
Abstract
This article looks into the question of whether trust between works councillors and managers affects their preferences for plant-level negotiations compared with industry-wide or multiemployer bargaining. The main hypothesis is that when a high degree of mutual trust exists, both parties are more likely to show a preference toward the plant level. When the level of trust is low, the bargaining parties rely more on supraplant-level bargaining and collective bargaining power. This article uses data from a survey of 1,000 German companies of at least 100 employees, including 1,000 personnel managers and 1,000 works councillors, that is, those persons responsible for negotiating working conditions at the plant level. Logistic regression analyses show that trust has no significant effect on the managers’ preference for decentralized bargaining, whereas it can be found to affect the works councillors. The authors finally discuss the question of why the effect of trust is different for the bargaining parties.

Suggested Citation

  • Werner Nienhueser & Heiko Hossfeld, 2011. "The Effects of Trust on the Preference for Decentralized Bargaining," SAGE Open, , vol. 1(3), pages 21582440114, October.
    • Handle: RePEc:sae:sagope:v:1:y:2011:i:3:p:2158244011425691
    DOI: 10.1177/2158244011425691
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    References listed on IDEAS

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    1. Ellguth, Peter & Kohaut, Susanne, 2011. "Tarifbindung und betriebliche Interessenvertretung: Aktuelle Ergebnisse aus dem IAB-Betriebspanel 2010," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 64(5), pages 242-247.
    2. Schnabel, Claus, 2006. "Verbetrieblichung der Lohnfindung und der Festlegung von Arbeitsbedingungen," Arbeitspapiere 118, Hans-Böckler-Stiftung, Düsseldorf.
    3. Kohaut, Susanne & Ellguth, Peter, 2010. "Tarifbindung und betriebliche Interessenvertretung: Aktuelle Ergebnisse aus dem IAB-Betriebspanel 2009," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 63(4), pages 204-209.
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    Cited by:

    1. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    2. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    3. John T. Addison & Paulino Teixeira, 2020. "Trust and Workplace Performance," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 874-903, December.
    4. Mohrenweiser, Jens, 2022. "Works Councils," GLO Discussion Paper Series 1103, Global Labor Organization (GLO).

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