The Dogs that Sometimes Bark: Globalization and Works Council Bargaining in Germany

This article investigates how international economic openness affects works council bargaining. The focus is on how bargaining over working time, payment systems and non-standard employment in eight German factories is affected by not only various measures of ‘bite’ (exit via trade and FDI flows) but also measures of ‘bark’ (employer threats of foreign production relocation). The main conclusion is that greater foreign investment and trade tend to trigger deeper concessions in works council bargaining. The study also suggests how biting and barking interact. The research suggests that the less studied manifestations of globalization may constrain labour organization more than previous studies focused on flows have suggested.