Organizational Fairness Perceptions, Employee Representation, and Firm Performance

ABSTRACT From a theoretical perspective, employees' fairness perceptions play a vital role in explaining the effect of employee representation on individual and firm‐level outcomes. However, the fairness argument has not been scrutinized in empirical studies yet. Using German longitudinal linked employer‐employee data, we show that particularly central collective bargaining agreements have a positive impact on employees' fairness perceptions, while firm‐level agreements have a lower impact and workplace representation via works councils has an insignificant to negative impact on employees' fairness perceptions. In addition, we demonstrate that higher individual fairness perceptions resulting from central bargaining contribute to the productivity premium at the firm‐level.

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Publication Details

Journal
Industrial Relations A Journal of Economy and Society
Published
2026-02-25
DOI
https://doi.org/10.1111/irel.70028
Primary Topic
Labor Movements and Unions
Type
article
Field-Weighted Citation Impact
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article

Organizational Fairness Perceptions, Employee Representation, and Firm Performance

Jens Mohrenweiser, Christian Pfeifer
Industrial Relations A Journal of Economy and Society
Labor Movements and Unions
article

Organizational Fairness Perceptions, Employee Representation, and Firm Performance

Jens Mohrenweiser, Christian Pfeifer
article en

Abstract

ABSTRACT From a theoretical perspective, employees' fairness perceptions play a vital role in explaining the effect of employee representation on individual and firm‐level outcomes. However, the fairness argument has not been scrutinized in empirical studies yet. Using German longitudinal linked employer‐employee data, we show that particularly central collective bargaining agreements have a positive impact on employees' fairness perceptions, while firm‐level agreements have a lower impact and workplace representation via works councils has an insignificant to negative impact on employees' fairness perceptions. In addition, we demonstrate that higher individual fairness perceptions resulting from central bargaining contribute to the productivity premium at the firm‐level.

Industrial Relations A Journal of Economy and Society
Leuphana University of Lüneburg (DE), International Labour Organization (CH), IZA - Institute of Labor Economics (DE), University of Applied Sciences Stralsund (DE)
Decent work and economic growth
Openalex Percentile: Top 29%
Labor Movements and Unions
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