Multinational corporations and the blocking of trade unions in Germany
Critical Perspectives on International Business
ISSN: 1742-2043
Article publication date: 28 February 2024
Issue publication date: 30 April 2024
Abstract
Purpose
This study aims to analyze the effect the liberalization of industrial relations in Germany has had on trade unions’ influence on companies’ decisions. Particular attention is given to European measures of flexibilizing company law and how they affect industrial relations in Germany.
Design/methodology/approach
After presenting a theoretical basis regarding industrial relations and corporate governance, the paper then demonstrates, via a case study, the effects of the flexible European company law. It examines the strategic avoidance of trade union activity at SAP, a case that ended up before the European Court of Justice.
Findings
The flexibility of European company law allows companies to limit the influence of trade unions on company decisions. Limiting trade unions' internal participation weakens their position overall. Precautionary measures to protect employees’ rights help to reduce the dangers of this process.
Originality/value
The influence of European law brings a new perspective to the transformation of the German industrial relations model. The analysis of the strategy of using the legal type of the European company (Societas Europaea) to limit the internal activity of trade unions demonstrates the connection between institutional settings and corporate governance.
Keywords
Acknowledgements
This project was supported by the Deutsche Forschungsgemeinschaft (DFG, German Research Foundation) (SFB TRR 294/1-424638267). The author would like to express her gratitude to Prof Mike Geppert for providing recommendations on the theoretical basis of the study, especially for suggesting relevant literature. As her primary research area is law, this guidance was particularly valuable. The author also thanks the two anonymous reviewers for their very detailed and resourceful comments during the review process. An AI tool was partially used to correct grammar and spelling.
Citation
Langbein, H. (2024), "Multinational corporations and the blocking of trade unions in Germany", Critical Perspectives on International Business, Vol. 20 No. 2, pp. 206-224. https://doi.org/10.1108/cpoib-02-2023-0012
Publisher
:Emerald Publishing Limited
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