How to negotiate with the works council? Preparation is key! Practical action plan: 1. Establish the right team. 2. Know your business case. 3. Set specific goals. This video is the second episode of the German Labor Law video series. In this video – Negotiations with the Works Council – Dr. Gerlind Wisskirchen will explain the key principles you should abide by when negotiating with the works council.
Birgit Steinborn, Head of Siemens Works Council
According to the daily Frankfurter Allgemeine Zeitung, Birgit Steinborn is Germany’s most powerful female executive. She heads up the works council at Siemens, and was recently appointed deputy chairwoman of its supervisory board. Who is Birgit Steinborn? How did she become such a high-flier? And how does she feel about the company’s plans to slash jobs?
Dealing with the Works Council
In this video Dr. Gerlind Wisskirchen explains 5 principles you should abide by when dealing with the works council in Germany. The German works council system is quite unique in the world, and many companies complain about their dealings with the works council.
Most companies consider it as a daily, almost tedious task to deal with the works council, and they find it extremely difficult to get to results. By abiding by all these principles, you can do much better with dealing with works councils!
Explaing the Works Council
The works council represents the interests of all employees. In our video clip you will find out when and to what extent a works council must be involved and what a head of HR of a major company with a works council has to bear in mind. For further information please visit
10 Important Facts About the 2022 Works-Council Elections
A works council in Germany is elected by employees and the conduct and procedure of the election is a matter for them too. Nevertheless, the employer usually has an interest in the proper conduct of the election.
An incorrect election procedure could result in higher costs for it, as well as unclear and unstable conditions in day-to-day dealings with the council and any collective agreements (“works agreements”) negotiated with representatives elected in an unlawful ballot.
Due to new case law and recent changes to the Works Constitution Act (BetrVG), the election procedure has been simplified. Employers are well advised to familiarize themselves with the recent amendments regarding the election process in good time to avoid subsequent disputes about the validity of the ballot.
German Works Council — An Essential Guide For Employers
Germany has some of the strictest labor laws in the world, with a key focus on protecting the rights of employees. To ensure a balanced relationship between the employer and employees, two systems exist alongside legislation to bridge the gap that can exist in corporate systems. The work undertaken by a German Works Council within companies is the system that focuses on company-level matters for decisions that impact employees.
Key Takeaways
1. A German Works Council (‘works council’, or, ‘Betriebsrat’) is a group of elected employees that represent the interests of a company’s workforce. A works council collaborates with management on key decisions within the company.
2. Although it is formally mandatory for companies with five or more permanent employees to set up a works council, this does not mean that all companies do. Companies can operate without a works council until it is formally requested by employees to hold an election to set one up.
3. The Works Constitution Act grants elected members of a works council a range of rights to effectively conduct their purposed tasks: This includes a right to information, a right to consultation, a right to decline, and a right to co-determination.
4. There are various pros and cons to having a works council within any given company. The pros include that works councils protects employee rights, provide a unified voice for negotiation with employees, are free for employees, and increase productivity. The cons include the costs of operation and maintenance, arguably lesser employee freedoms, and longer decision-making timeframes.
German or American: Which labor law is better?
The recent terminations at Twitter have once again shown how different the protection against dismissal is in German and American labor law.
U.S. employees will probably receive continued pay for 60 days, or two months, under the WARN Act, and that’s it. If Elon Musk offers the dismissed employees (instead) a severance payment amounting to three months’ salary, that is considered quite fair by American standards. After all, Musk is paying 50% more than he has to.
In Germany, we would rather draw up a social plan that grants the dismissed employees (at least) 1 gross month’s salary per year of service as severance pay, in addition to compliance with the notice period.
Where do these differences come from, and which system is actually better?
What Happened in Chattanooga?
2014. The recent vote by workers in a Volkswagen plant in Chattanooga, Tennessee to decline representation by the United Auto Workers union (UAW) highlights the differences in labor policies between the United States and Germany.
With American union membership on the decline, this was the first time that the UAW attempted to represent workers in a foreign company in over a decade, and its failure sets a precedent for the future of unions in the American South.
Looking to its successes in Germany and elsewhere, Volkswagen was in favor of creating a German-style “works council” in Chattanooga that, due to American labor laws, would require the UAW to represent workers’ interests.
This was met with mixed reviews. In particular, workers worried that voting for union representation would scare away production of a new model of SUV, despite VW’s assurances that the UAW vote would have no effect on the decision to manufacture the SUV in Chattanooga. Politics also played a role in the outcome.
In the politically conservative South, several Tennessee government officials, with the help of anti-union action committees, were able to lead a successful campaign against the union. Some lawmakers warned that VW might not receive new tax incentives to expand in the state if the UAW was successful at the VW plant.
Furthermore, many workers were reportedly happy with current wages, felt that the company treated them well, and did not want the union to damage or muddy that dynamic. The vote has left Volkswagen still looking for a way to create a works council, even without the UAW.
Employment law: Basic information
In Germany, all laws and regulations concerning work are summarised in labour law. The protection of workers plays a key role in this. For example, labour law gives you comprehensive rights in relation to your employment contract, wages and holidays.
Termination of the employment relationship
You or your employer may terminate your seasonal employment relationship early. The notice periods to be observed are stated in your employment contract. Your employment may only be terminated without notice in specific cases.
A notice of termination is only valid if it can be proven to have been handed over. This is the case when a notice of termination exists as a written document and has been signed by both parties. A notice of termination is also valid if a witness was present when notice was given or handed over as a written document. Notice of termination by email is not deemed to be written notice of termination and is therefore invalid.
Working hours
The average working hours in Germany is 8 hours per day. This can be extended to up to 10 hours per day for a short period. A rest period of 11 hours is normally prescribed between 2 shifts.
Breaks
If you work between 6 to 9 hours a day, you are entitled to a 30-minute break after no later than 6 hours. If you work more than 9 hours a day, the break is extended to 45 minutes. Labour law prohibits taking the break at the end of the day’s work in order to leave earlier.
Breaks are not considered working time and are therefore not paid.
Holidays
Even as a seasonal worker, you are entitled to paid leave. This is at least 2 days for each month in which you work full time. The holiday pay may also be paid to you at the end of your period of employment if you have agreed this with your employer in advance.
If you work on Sundays or public holidays, your employer must offer you a corresponding number of days off in lieu within 8 weeks.
Wages
A minimum wage is mandatory for all employees in Germany. This means no employer may pay less than this hourly wage. Since 1 January 2022, the minimum wage has been EUR 9.82 per hour gross. This means before taxes and other charges are deducted from this amount.
Even if you have agreed a piecework rate with your employer, you may not earn less than the statutory minimum wage.
Your employer must also give you a pay slip. This lists the tax amounts that will be deducted from your gross wage. If your employer provides accommodation, the cost for this may also be deducted from your wages. The corresponding amount must also be shown on the pay slip.
Features of German Employment Law
Relations between German employers and employees are extensively regulated under German labor and employment law. German labor and employment law is strongly biased in favour of employees and is probably best referred to as the “employee protection law”.
