TY - UNPB

T1 - Fairness and the labour market: A theoretical and empirical analysis of layoffs in Germany

AU - Pfeifer, Christian

PY - 2005

Y1 - 2005

N2 - In recent years layoffs have increasingly become the focus of public attention. So far, however, there has been no respresentative study for Germany of how far and under what conditions layoffs are accepted by the population - in other words by people who are not immediately affected. Principles of distributive justice, rules of procedural justice, attribution theory, and psychological contract theory from the framework of the analysis. On this basis, hypotheses are generated, which are tested empirically in a telephone survey conducted among East and West Germans in 2004 (n=3039). Key findings are:- By relinquishing their own bonus payment, the management of a firm can increase the acceptance of layoffs. - Generous compensation payments for those made redundant are perceived to be fairer than wage cuts to avoid layoffs. Wage cuts are not even preferred to layoffs where no measures are taken to soften the blow of job loss.- Opt-out clauses ("tarifvertragliche Öffnungsklauseln") to undercut collective bargaining agreements are perceived to be fairer than outsourcing, especially when women are outsourced.- There is a negative impact of layoffs on workers´motivation and on cooperation between co-workers as well as between the workforce and management. - Union-members perceive layoffs as less fair and survivors´sanctions as more fair than non-union members.

AB - In recent years layoffs have increasingly become the focus of public attention. So far, however, there has been no respresentative study for Germany of how far and under what conditions layoffs are accepted by the population - in other words by people who are not immediately affected. Principles of distributive justice, rules of procedural justice, attribution theory, and psychological contract theory from the framework of the analysis. On this basis, hypotheses are generated, which are tested empirically in a telephone survey conducted among East and West Germans in 2004 (n=3039). Key findings are:- By relinquishing their own bonus payment, the management of a firm can increase the acceptance of layoffs. - Generous compensation payments for those made redundant are perceived to be fairer than wage cuts to avoid layoffs. Wage cuts are not even preferred to layoffs where no measures are taken to soften the blow of job loss.- Opt-out clauses ("tarifvertragliche Öffnungsklauseln") to undercut collective bargaining agreements are perceived to be fairer than outsourcing, especially when women are outsourced.- There is a negative impact of layoffs on workers´motivation and on cooperation between co-workers as well as between the workforce and management. - Union-members perceive layoffs as less fair and survivors´sanctions as more fair than non-union members.

KW - Economics

KW - distributive justice

KW - downsizing

KW - fairness

KW - layoffs

KW - procedural justice

M3 - Working papers

T3 - Discussion paper

BT - Fairness and the labour market: A theoretical and empirical analysis of layoffs in Germany

PB - Universität Hannover, Wirtschaftswissenschaftliche Fakultät

CY - Hannover

ER -