Works councils: an agency perspective

This paper investigates the role of works councils in a simple agency framework in which works councils are supposed to monitor manager’s information on behalf of the workforce, but they are independent agents who might pursue their private interest. First, we consider that workers can incentiviz...

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Autor Principal: Gallego, Juan M.
Formato: Documento de trabajo (Working Paper)
Lenguaje:Español (Spanish)
Publicado: Universidad del Rosario 2012
Materias:
J50
J53
J83
Acceso en línea:http://repository.urosario.edu.co/handle/10336/11529
id ir-10336-11529
recordtype dspace
spelling ir-10336-115292019-09-19T12:37:54Z Works councils: an agency perspective Gallego, Juan M. Producción Relaciones industriales Comités de empresas Administración::Participación de Empleados Workplace Representation Works Councils Collusion Elections J50 J53 J83 This paper investigates the role of works councils in a simple agency framework in which works councils are supposed to monitor manager’s information on behalf of the workforce, but they are independent agents who might pursue their private interest. First, we consider that workers can incentivize works councils through contingent monetary payments. In order to deter collusion, workers must pay higher compensations in states of nature where they can be expropriated by potential coalitions among works councils and management. Collusion makes contingent payments costly and reduces workers’ payoffs. Second, when elections are the exclusive mechanisms to align works councils’ interest, only well compensated representatives would face an intertemporal tradeoff between accepting management’s transfers at first period and losing rents at the second period. Elections increase the cost of entering on collusive behavior with management and works councils will try to behave on the employees’ interest. 2012-11-01 2015-11-17T20:42:48Z info:eu-repo/semantics/workingPaper info:eu-repo/semantics/publishedVersion http://repository.urosario.edu.co/handle/10336/11529 spa info:eu-repo/semantics/openAccess application/pdf Universidad del Rosario Facultad de Economía reponame:Repositorio Institucional EdocUR instname:Universidad del Rosario
institution EdocUR - Universidad del Rosario
collection DSpace
language Español (Spanish)
topic Producción
Relaciones industriales
Comités de empresas
Administración::Participación de Empleados
Workplace Representation
Works Councils
Collusion
Elections
J50
J53
J83
spellingShingle Producción
Relaciones industriales
Comités de empresas
Administración::Participación de Empleados
Workplace Representation
Works Councils
Collusion
Elections
J50
J53
J83
Gallego, Juan M.
Works councils: an agency perspective
description This paper investigates the role of works councils in a simple agency framework in which works councils are supposed to monitor manager’s information on behalf of the workforce, but they are independent agents who might pursue their private interest. First, we consider that workers can incentivize works councils through contingent monetary payments. In order to deter collusion, workers must pay higher compensations in states of nature where they can be expropriated by potential coalitions among works councils and management. Collusion makes contingent payments costly and reduces workers’ payoffs. Second, when elections are the exclusive mechanisms to align works councils’ interest, only well compensated representatives would face an intertemporal tradeoff between accepting management’s transfers at first period and losing rents at the second period. Elections increase the cost of entering on collusive behavior with management and works councils will try to behave on the employees’ interest.
format Documento de trabajo (Working Paper)
author Gallego, Juan M.
author_facet Gallego, Juan M.
author_sort Gallego, Juan M.
title Works councils: an agency perspective
title_short Works councils: an agency perspective
title_full Works councils: an agency perspective
title_fullStr Works councils: an agency perspective
title_full_unstemmed Works councils: an agency perspective
title_sort works councils: an agency perspective
publisher Universidad del Rosario
publishDate 2012
url http://repository.urosario.edu.co/handle/10336/11529
_version_ 1645141991658356736
score 11,365685