Explain the concept of codetermination and works councils as they apply to German labor relations.

Question

What will be an ideal response?

Answer 1

Codetermination is an institutionalized system of employee voice in which employees are entitled to participate in workplace decision-making. German codetermination has two components: works councils and employee representation on corporate supervisory boards. A works council is a workplace-level committee of employees elected to represent all workers. These works councils have three important rights. Codetermination means that a company must jointly determine with the works council issues pertaining to work rules, discipline, work hours, leave schedules, pay and bonuses, overtime, safety, and personnel selection methods. In addition to codetermination rights, works councils have information and consultation rights which obligate the employer to share financial information and consult with the works council on major workplace changes. The existence of a works council does not depend on whether the employees are unionized. Works councils must meet with the employer at least once a month and the law mandates that the company and the works council must work together in a spirit of mutual trust for the good of employees and the company. A works council cannot strike but can sue an employer to fulfill its legal obligation.