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Mitbestimmung is Controversial

Although Mitbestimmung – codetermination: the legal right of workers to be represented at the highest levels of management – is foundational to the German social market economy, its merits are debated constantly.

Business (companies and their associations) believes that Mitbestimmung has been taken too far. The many different interests represented makes it too difficult to find consensus. It is an inefficient way to run profitable companies.

In October 2004 Germany’s two largest chambers of commerce (BDI and BDA) demanded reform of the Mitbestimmung. Their main argument was the pressures due to increasing internationalization of their companies. They referred to Mitbestimmung as an historical mistake.

There exists in Germany, however, a cultural and political consensus favoring Mitbestimmung. Germans believe that it provides for stability in companies. Employees identify themselves with them. Productivity is kept at high levels.

An historical mistake?

Bürgermeister and more

Governors in the German states are called Ministerpräsident or Minister President or Premier. They are president of those ministers, who run the various departments of a state. The state parliaments have the same structure as the Bundestag, Germany‘s national parliament.

The minister president is a colleague among the members of the state parliament‘s largest elected faction and is elected by his or her colleagues to form a government, typically a coalition of two parties.

The minister presidents, like the chancellor, manage and coordinate the work of the ministers, who, however, lead their departments independently. The minister president is a primus inter pares, a first among equals.

Like the ministers at the federal level, the ministers at the state level are powerful political figures from the regions of the state. Each is capable, and in most cases willing, to become minister president. The acting minister president, therefore, has to balance out carefully the interests of these power brokers.

Germans mayors are called Bürgermeister. Again, like the chancellor and the minister presidents, the Bürgermeisters are selected by their colleagues in the largest elected party in their city councils. They form a city government, typically a coalition of two parties.

And like the chancellor and the minister presidents, the mayor is a primus inter pares, managing powerful local politians who head up the city‘s most important departments.

Mitbestimmung

Mitbestimmung: to determine with, to co-determine, co-decide; to be involved in a decision making process; representatives of blue and white collar workers having a seat at top management levels.

German law guarantees that employees have a say in all issues affecting the workplace, including internal rules and regulations, work conditions, personnel policy and those decisions determining the future of the company.

Mitbestimmung has its roots in the 19th century, when workers associations were established to improve work conditions and to check the unlimited power of management. The associations evolved into labor unions, which by the end of the 19th century had the legal right to represent workers over and against management.

The creation of labor unions was supported politically not only for ethical reasons, to protect the interests of the worker. Both sides – labor and capital – wanted to establish mechanisms to balance out the interests of both in ways which would avoid stikes, protests and social unrest. This is the spirit behind Mitbestimmung.

Betriebsrat. Works council. Any company with five or more employees must by law allow the formation of a works council. These are elected democratically and represent the interests of all employees – both white collar (non-labor) and blue collar (labor). If management and the works council cannot agree on certain issue, the law requires that a neutral third party mediator be involved.

The interaction between management and works council can be either positive or negative. Well run companies have a very cooperative relationship, which contributes to company success. In other companies the relationship is contentious, especially in those struggling in the market. The works council can often block management attempts to downsize the workforce, close down plants or otherwise restructure in ways negative for the (white collar workforce) employees.

Gewerkschaften. Labor unions in Germany unite employees of one industrial sector. They mostly represent their members in wage negotiations which are obligatory for the whole sector (labor agreement). They have the right to strike, an instrument they use only when negotiations have broken down and after serious deliberation.

Serve a Good Purpose

Germans believe that when you serve another person – dienen – you have to accept the value system of that person. He who serves, has to do things, has to act in a way, which they might otherwise fully reject. Even more, the person serving is obligated to do their very best. Germans do not consider this a relief, not as a transfer of moral responsibility from the one serving to the one being served. On the contrary, it represents a burden for them, knowing from the very start that they will invariably come into conflict with their conscience.

On the other hand, when a German is willing to serve a good purpose, a cause they believe in, they are freely submitting to a belief, taking a moral stand, agreeing with a set of arguments. They can formulate those arguments in a way which fits their values. If one can no longer support the cause, there is no obligation to continue contributing time and effort.

Psychologically this means that serving a good cause, whether through action, financial assistance or communicating the message, means serving one’s own value system. We are obligating ourselves freely. Independence and self-determination are protected.

But why do Germans have such difficulty with dienen, serving? Perhaps it has to do with the fact that Germans in many ways live mit sich – with themselves, and in sich – in themselves, in the sense of how they live, where they live. Their surroundings are very much a part of their personality, their self-understanding. Unexpected visitors, regulations or limitations on their private lives are quickly interpreted as personal attacks. The boss calling unexpectedly, friends dropping by for a visit, colleagues giveing unsolicited advice concerning their private life make Germans feel uncomfortable.

To serve well, though, means to push to the side one’s own values, beliefs, ways of living. The better one can do that, the better they can serve. And that is the difficult part for Germans. They prefer far more beraten, to advise, or to complete a task. Beraten involves addressing a topic, subject, problem. It is impersonal, independent of one‘s values, lifestyle, belief system.

Back to serving a good purpose. German non-governmental organizations – NGOs – are confronted by the dilemma that they need to function well as organizations, but do not want to give their members the impression that they work for an organization. Internal power struggles are poisonous for small, low-budget organizations. Members need to know that they are serving a higher purpose and not an organizational structure.

For Germans, their work, what they accomplish day in and day out, is very much a part of their personal identity. On the one side this makes it difficult for them to maintain distance from their work. On the other, however, it enables them to work very conscientiously and independently. The German logic is: „Do you want to understand who I am. Look at my work.“

The Switch Operator

Dr. Sigrid Evelyn Nikutta is the head of Berlin’s public transportation authority, and is considered one of Germany’s top managers. Named Manager of the Year in 2012, she is known for her democratic and employee-focused leadership style.

Nikutta characterizes herself as consistent, consequent and cooperative: “Employees are my colleagues. I seen them as people. That is no contradiction to an ambitious leadership style which sets clear goals. Involvement of all key people, on all levels, is critical, in order to make clear and fast decisions, whose results are followed closely.”

Nikutta’s management approach is not only effective, but moreso very popular among today’s German workers. Especially the younger generations prefer a boss who is more of a partner and who communicates transparently.

Successful leadership leads to motivation and results. The head of Berlin’s public transportation authority is a model for successful, consensus-oriented management.