Germany's workforce is witnessing a significant decline in the number of works councils.
The prevalence of works councils in German businesses has hit an all-time low, according to recent findings from the Institute of the German Economy (IW) and reported by "Die Welt am Sonntag". A mere 7% of companies now boast this employee representation body, leaving less than one-third of private sector workers with a voice in corporate decision-making. This figure represents a significant drop from the 49% recorded in 1996.
This concerning development has sparked concern among trade union leaders such as Christiane Benner, head of IG Metall. Benner laments the insufficient efforts to protect co-determination and calls for improved protection for initiators of works council elections and preventative penalties against those who obstruct these attempts.
The Christian Democratic Workers' Association (CDA) chairman, Dennis Radtke, attributes the issue to employers who utilize intimidation tactics and threats of dismissal to thwart the establishment of works councils, such as in the case of Amazon.
For temporary workers, freelancers, or those holding mini-job positions, engaging in works council activities presents unique challenges. The Left Party's social policy spokesperson, Susanne Ferschl, notes that these types of employment are on the rise, particularly within the service sector.
However, Green Party social expert Frank Bsirske highlights the intention of the "traffic light coalition" to strengthen works councils before their term ended prematurely.
Employers, like Steffen Kampeter, managing director of the Association of German Employers (BDA), view the emergence of works councils as the result of excessive bureaucracy and the outdated Works Constitution Act. They argue that alternatives like direct representation offer simplified and modern methods for company participation.
Various factors and proposed solutions might impact the effectiveness and relevance of works councils in the German business landscape:
- Legislation Changes and Reforms:
- Implementation of the EU Pay Transparency Directive might necessitate revisions to salary structures, altering the wage negotiation role of works councils.
- Uncertainty in adhering to the Working Hours Act and the need for flexibility could affect the significance of works councils in managing working hours.
- Digitalization and Online Voting:
- Online voting for works council elections could modernize the process, potentially increasing participation and reversing the decline trend.
- Employee Data Act:
- Regulation of employee data handling through the Employee Data Act could bolster the role of works councils in promoting data protection and employee rights.
- Economic Challenges and Redundancies:
- During economic challenges, works councils play a significant role in negotiating social plans and reconciling interests during redundancies. Efficient negotiation processes can mitigate the impacts of job losses.
- Political Agenda and Policy Changes:
- Upcoming Bundestag elections and potential policy changes like the CDU/CSU's intent to reduce bureaucracy could indirectly influence the effectiveness of works councils by creating a more welcoming business environment.
The decline in the number of employed individuals represented by works councils has led to concerns among union leaders, such as Christiane Benner, who advocates for stronger protection of co-determination rights. Employers, like Steffen Kampeter from the Association of German Employers (BDA), argue against the establishment of works councils, citing excess bureaucracy and the potential of alternatives like direct representation.
