ABSTRACT
Foreign direct investments from emerging market firms often result in insecurity on the part of employees within the German target company. A common fear is that the new foreign owner will not accept pre-existing standards of industrial relations and social standards but try to undermine them in order to align them with the situation in the home country. Little is known, however, about the real impacts of foreign direct investment on industrial relations in the acquired companies. This chapter aims to close this research gap. The paper is based on a quantitative telephone survey and qualitative interviews with representatives of German companies, works councils and trade unions.
