If worker-representatives have appropriate mechanisms for sharing information with the workforce, could increase productivity and innovation by improving information flow within firms.
Codetermination can dampen or eliminate information asymmetry between employers and workers.
A 1998 German commission unanimously concluded that codetermination deepened trust between management and labor, improving information flow.
In 2015, only 7.2% of US private sector workers were covered under collective bargaining agreements. Meanwhile, 50.2% in Germany.
82% of Swedish managing directors report that codetermination led to decisions becoming better rooted among employees
51% of Swedish managing directors reported that codetermination led to new ideas being presented to management
Codetermination in Sweden: Myth and Reality
Codetermination: A Poor Fit for U.S. Corporations
Fighting Short-Termism with Worker Power
Economic Democracy at Work: Why (and How) Workers Should be Represented on US Corporate Boards