German Study Reveals Sharp Decline in Employee Representation in German Companies
According to a recent study by the Institute of the German Economy (IW), the number of German companies with a works council has reached a low point. Only seven percent of companies now have a works council, a significant decline from the past. The study, reported by the “Welt am Sonntag”, reveals that nearly a third of private sector employees are represented by a works council, down from 49 percent in 1996.
This development should “deeply concern us as a union and society”, said Christiane Benner, head of the IG Metall union, in an interview with the newspaper. The union’s efforts to prevent the erosion of co-determination have not been sufficient, and the government’s actions have not been effective in stopping the decline.
The head of the Christian-Democratic Association (CDA), Dennis Radtke, places the responsibility on the employers. “I think, for example, of Amazon, where everything was done to prevent the establishment of a works council, including threats of dismissal and intimidation”, said Radtke, a CDU politician.
Susanne Ferschl, the social policy spokesperson for the Left party, pointed out that it is particularly difficult for people in temporary work, fixed-term employment, or mini-jobs to engage in a works council, as these forms of employment are rapidly increasing in the booming service sector.
Frank Bsirske, a Green party politician, referred to the previous government’s plans to strengthen employee co-determination, which ultimately failed due to the government’s collapse. The employers, on the other hand, criticize the government’s efforts, saying they have led to new, bureaucratic regulations that employees are not interested in. Steffen Kampeter, the head of the German Employers’ Federation (BDA), also criticized the outdated and bureaucratic nature of the Works Constitution Act, suggesting that alternative forms of employee participation, such as employee representative bodies, offer simpler and more modern ways of getting involved in companies.