Chapter 21 Employee Representation

Abstract

German law provides for employee representation at different levels. The most important employee representative body is the works council (Betriebsrat), a body elected by employees for a term of 4 years. The works council has to be consulted on a wide range of subject matters. However, the works council is usually not competent to negotiate salaries and other key terms of employment. This competence rests with the unions. The unions are usually nationwide organisations and do not only exist in a single company. Also, only unions have the competence to call for a strike. Key members of the works council, particularly in larger companies, are, however, often union members and have a say within the union. Employees are also represented in an “economic committee” (Wirtschaftsausschuss), a body of employee experts mainly appointed by the works council. The committee has a right to be informed of relevant economic circumstances of the employer. In large companies with significant operations within at least two member states of the European Union (EU) employees may set up a European Works Council, competent for matters affecting several countries.