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Labor Law: Works Council as a Location Risk - Employers Demand Reform

From software updates to changes in production, the works council has a say in the matter. This slows down structural change and throws Germany back in the competition, warn the employers in the BDA.

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Labor Law: Works Council as a Location Risk - Employers Demand Reform

The German Employers' Association (BDA) believes that the extensive participation and speaking rights of works councils are no longer suitable for today's times. According to BDA President Rainer Dulger, these councils often hinder entrepreneurial decisions or stand in the way of profound structural changes. The BDA has commissioned a study from law professors Richard Giesen, Felix Hartmann, and Christian Picker on how to modernize the Works Constitution Act, which dates back to 1952 and was last reformed in 2021.

Dulger argues that the involvement of works councils should bring employee interests into decision-making processes, but not make them co-managers.

Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.

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