job security

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?

YouTube comments:

“I met a retired salesman in his 60’s finishing up his history degree. His dream was to be a history teacher. When most folks are retiring he was starting something new. I never forgot him.”

“When you’re 20 you care what everyone thinks, when you’re 40 you stop caring what everyone thinks, when you’re 60 you realize no one was ever thinking about you in the first place.”

“Thanks for the advice. I’m 52 and quit the manufacturing world after 29 years. I got so tired of the corporate puppets coming down and acting like tyrants I turned walk in and handed in my 30 day notice. I worked as a supervisor but it turned into a supervisor, manager, HR and Safety manager job and expected us to work 12 hour days seven days a week. I decided screw that paid everything off I own. I now make knives and jewelry as my hobby and help my kids out with their business. Best thing I could of done.”

“From somebody who’s done this: There is a difference between fear of failure and fear of homelessness. When I got five mortgage payments behind, I was no longer focusing my creative energy on writing, I was losing sleep because I was about to lose my house. For a novelist anyway, I think the idea of quitting your day job is really bad advice. I have found it easier to be creative when I don’t have to worry about where my next house payment is coming from. I’ve written six novels, one of them while unemployed and “chasing my dream.” Lemme tell you – financial desperation does not improve your odds. I can still produce 10,000 words a week just fine as somebody who gets a paycheck. And my books still don’t sell. That problem is not solved by adding the anxiety of having no income. .02 from somebody who tried it and lost.”

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.

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?

​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.

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