Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University

Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University

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diminished options of socially acceptable personnel adjustments and new vacancies. Both parties agreed in their assessment that the adjustment to reforms is costly and often not feasible, and blamed the government for placing burdens onto firms. However, they also perceived the necessity to restore public finances to sustainability. The qualitative panel was of great use in order to analyse the adaptation to reforms. This dynamic perspective allowed, firstly, for cross-checking the declarations of management or employee representatives at the first interview with actual deeds accomplished or renounced by the time of the second interview. Secondly, it was possible to study adaptation patterns at a time when respective pension reforms were still far away, and at a time when their passing was near or phasing-in periods were almost over. However, even at the time of the second interview, some reforms have not engendered full effects. I assume that firms will react differently in medium term, e.g. after a first wave of legal suits for ageism. 4.2.9. Cooperation between the Management and the Employee Representation This chapter will delineate the cooperation between the works council and the personnel management as central actors which are responsible for translating institutional regulations at firm level and for setting the course in the direction of age management or, on the contrary, pursuing the current externalising course of action. The chapter will observe the decision-making process at firm level which was included as part of the national analytical model in Figure 3 (see section 3.1.). In German companies, decision-making takes place between the works council and the management. After the amendment of the Works Constitution Act in 1972, the personnel manager became the main sparring partner of employee representatives (Weitbrecht 2003: 72). The result of the negotiations are works council agreements and personnel policies in such fields as recruitment, dismissals, training, health management, remuneration, and personnel deployment. There is little evidence whether works councils influence employers´ dismissal (and employees´ quit) decisions and the allocation of funds for further training (Backes-Gellner et al. 1997: 332-4). Quantitative results report a lower dismissal and lower quit rate in firms with a works council. The works councils also play an active role in protecting training investments. They enforce further training measures in order to reduce the risks of 151

ationalisation, and foster adaptive training in case of changing work processes within the firm (ibid). This chapter will attempt to shed light on the role of the employee representatives in personnel reductions, age management, and singular fields of HRM. By doing this, I will assess the validity of the findings of Backes-Gellner et al. (1997) cited above. I will try to formulate the interests of the personnel management and of the works council with regard to singular issues of personnel management, the pursued strategies, and the points of disagreement or compromise. On the basis of those findings, I will assess hypothesis 7. Of all firms in my sample, the works councils in the purview of ver.di (Firm DE-1, Firm DE-2 and Firm DE-4) and Firm DE-3 had the largest co-decision power due to codification in branch-specific Works Council Acts, and Firm DE-13, due to the fact that the studied site was represented by a group works council (and not only an establishmentbased one, like in the case of the other firms with many locations or belonging to a larger group). Their cooperation, resp. conflict potential varied with regard to the issues at stake. My interviews revealed a ´job division´ between the employee representation at firm level and the personnel management in the recruitment process which is broadly in line with the regulations of the Works Council Law. The works council members could comment on the recruitment practice but often did not have insight into the first phase of the selection process. Therefore, they could rarely report in interviews whether there were any applications of persons 50 years of age and older. The personnel managers, in turn – in cases when they were responsible for recruitment – could explain the reasons for the concrete practice. According to the Works Council Law and the Employee Representation Law (in the case of the public sector), employee representatives participate in the personnel selection process and can pose a veto or a recommendation in favour or against hiring a given person. In practice, however, the extent to which such opinions are taken into account by the management varies depending on the power position of the works council in the given firm or branch and whether the relations with management are cooperative or conflictual. Generally, works councils do not regard consultancy in recruitment as their primary activity and are more interested in matters of employee exit policy or health management (Schäfer 2008: 293; Ahlers/Brussig 2004: 621). However, I noticed in my case studies that if works council were engaged in that realm, they voted in favour of giving preference to former 152

diminished options of socially acceptable personnel adjustments and new vacancies. Both<br />

parties agreed in their assessment that the adjustment to reforms is costly and often not<br />

feasible, and blamed the government for placing burdens onto firms. However, they also<br />

perceived the necessity to restore public finances to sustainability.<br />

The qualitative panel was of great use in order to analyse the adaptation to reforms.<br />

This dynamic perspective allowed, firstly, for cross-checking the declarations of<br />

management or employee representatives at the first interview with actual deeds<br />

accomplished or renounced by the time of the second interview. Secondly, it was possible<br />

to study adaptation patterns at a time when respective pension reforms were still far away,<br />

and at a time when their passing was near or phasing-in periods were almost over.<br />

However, even at the time of the second interview, some reforms have not engendered full<br />

effects. I assume that firms will react differently in medium term, e.g. after a first wave of<br />

legal suits for ageism.<br />

4.2.9. Cooperation between the Management and the Employee<br />

Representation<br />

This chapter will delineate the cooperation between the works council and the personnel<br />

management as central actors which are responsible for translating institutional regulations<br />

at firm level and for setting the course in the direction of age management or, on the<br />

contrary, pursuing the current externalising course of action. The chapter will observe the<br />

decision-making process at firm level which was included as part of the national analytical<br />

model in Figure 3 (see section 3.1.).<br />

In German companies, decision-making takes place between the works council and the<br />

management. After the amendment of the Works Constitution Act in 1972, the personnel<br />

manager became the main sparring partner of employee representatives (Weitbrecht 2003:<br />

72). The result of the negotiations are works council agreements and personnel policies in<br />

such fields as recruitment, dismissals, training, health management, remuneration, and<br />

personnel deployment.<br />

There is little evidence whether works councils influence employers´ dismissal (and<br />

employees´ quit) decisions and the allocation of funds for further training (Backes-Gellner<br />

et al. 1997: 332-4). Quantitative results report a lower dismissal and lower quit rate in firms<br />

with a works council. The works councils also play an active role in protecting training<br />

investments. They enforce further training measures in order to reduce the risks of<br />

151

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