What is codetermination in Germany?
Codetermination in Germany is a concept that involves the right of workers to participate in management of the companies they work for. It applies to public and private companies, so long as there are over 2,000 employees. For companies with 500–2,000 employees, one third of the supervisory board must be elected.
What is a works council in Germany?
Defining a German Works Council It’s defined as an organization representing workers that function at the local level and complements national labor negotiations. In particular, a German Works Council is set up as follows: General Labor Agreements Defined at the National Level by German Unions & Employer Associations.
Does Germany have work councils?
A works council can be elected in Germany in operations normally having at least five employees. Preventing a works council election in Germany is punishable under criminal law. The size of the works council to be elected depends on the number of employees in the company and can consist of up to 35 members.
Which countries have codetermination?
Countries with codetermination laws, such as Germany, Norway, and Sweden, also have very widespread firm-level union representation and have strong collective bargaining agreements negotiated at the industry level that set standards for wages and working conditions.
What are the benefits of codetermination?
Codetermination leads to increased profits if the other firm is a traditional profit maximizer. Bargaining is the dominant strategy, although joint profits would be maximized with unrestricted profit-maximization. The theory is tested with data from 22 German firms, who operate in the same markets over 23 years.
What is meant by codetermination?
Definition of codetermination : the participation of labor with management in determining business policy.
What is the difference between a works council and a union?
The distinctions between trade unions and works councils are the following: Trade unions are voluntary affiliations that exclusively represent the interests of their members. Works councils represent all employees in the company and are constituted by statute.
What is the purpose of a works council?
Works councils and staff councils represent the employees of a company. For this purpose, employees elect colleagues from their company to the works council or staff council. It then champions the rights of all employees in the company and negotiates, for example, works agreements.
What is the role of a works council?
Works councils provide representation for employees at the workplace and they have substantial powers – extending to an effective right of veto on some issues. Although not formally union bodies, union members normally play a key role within them.
What are the two channels of codetermination in Germany and what does each do?
There are two levels through which employees are given codetermination rights to participate in a firm’s decision making: the work council (“Betriebsrat”,establishment or “shop-floor” level) and the supervisory board (“Aufsichtsrat”,company level).
What is codetermination?
In corporate governance, codetermination (also “copartnership” or “worker participation”) is a practice where workers of an enterprise have the right to vote for representatives on the board of directors in a company. It also refers to staff having binding rights in work councils on issues in their workplace.
How does the Codetermination system work in Germany?
For companies with 500–2,000 employees, one third of the supervisory board must be elected. There is also legislation in Germany, known as the Betriebsverfassungsgesetz, whereby workers are entitled to form Works Councils at local shop floor level. Views differ on the goals of codetermination in general.
How does the works council work in Germany?
According to the German Works Constitution Act (Betriebsverfassungsgesetz- BetrVG), the works council must agree to the use of technical devices designed to monitor the behavior or performance of the employees.
Where does co determination take place in Germany?
Co-determination at board level takes place in the supervisory boards. Whereas co-determination at the establishment level applies to all German private law companies, the right of co-determination in board matters affects only large corporations. The two levels of co-determination complement each other.
Which is the organ of Operational codetermination?
The Betriebsrat or works council is the organ of operational codetermination. In the public sector it is known as the Personalrat (or staff council). Corporate codetermination (Unternehmensmitbestimmung) concerns private (GmbH) and public limited companies (AktG).