HomeAutomotive & E-MobilityHalf of Germany’s Large Firms Now Lack Parity Codetermination—and the Crisis Has...

Half of Germany’s Large Firms Now Lack Parity Codetermination—and the Crisis Has a Name: Volkswagen

The 50th anniversary of Germany’s landmark Mitbestimmungsgesetz (Co-determination Act) on 1 July 2026 was meant to be a celebration. Instead, it became a stage for raw warnings. DGB chairwoman Yasmin Fahimi told the audience in Berlin that only every other company with more than 2,000 employees still operates a parity-composed supervisory board—down from a much higher share in decades past. She accused EU proposals for new legal forms of creating loopholes that allow firms to bypass national co-determination standards. Meanwhile, participants called for updating the legal framework to cover sustainability and digital democracy.

The most immediate threat to worker representation, however, is playing out at Volkswagen. A tightened cost-cutting programme could eliminate up to 100,000 jobs worldwide by 2030. Plants in Zwickau, Hanover and Emden are particularly at risk. Carsten Büchling, head of the works council at VW’s Baunatal components plant, described management’s communication as

a “disaster for the board.” Employee representatives are demanding binding investment commitments and the preservation of existing job guarantees. A critical supervisory board meeting is scheduled for 9 July 2026.

A similar stand-off is brewing at Glencore’s site in Nordenham. The works council there has halted negotiations on the so-called “1+1” project after a key external advisor left the process. The council suspects the departure was linked to the advisor’s pro-worker stance. A deadline for climate-protection contracts expired on 30 June 2026 without a company pledge. IG Metall is now demanding a five-year employment guarantee and a clear commitment to decarbonisation.

Anniversary and Reality Check

Federal Constitutional Court President Stephan Harbarth, speaking at the same Berlin gala, called co-determination an “essential pillar of the economic and social order” and credited reliable cooperation in supervisory boards with stabilising Germany as a business location. But his praise stood in stark contrast to the industrial conflicts unfolding in the automotive and metals sectors.

Not all news is grim. The European Works Council at Unilever negotiated agreements between March 2024 and June 2025 that reduced planned job cuts and secured working conditions for three years. At automotive supplier Brose, after a factory closure was announced in February 2025, the works council managed to preserve about 1,400 jobs through public pressure and detailed analyses.

Training, Podcasts and Dress Codes

After recent works council elections, many bodies are investing in structured onboarding. Peter Schober, chairman of the works council at Vienna’s WAFF (Employee Promotion Fund), said new hires receive a personal introduction from the council; eight out of ten then join a union. Digital offerings are expanding too: a weekly podcast series launched in spring 2026 covers teamwork and storytelling for council members, and a large seminar series is rolling out across Berlin, Brandenburg and Saxony starting in July 2026, covering everything from legal basics to occupational health and safety.

Advertisement

As European works councils invest in training on occupational health and safety, UK employers face their own set of legal obligations. Many businesses risk substantial fines simply because they lack proper risk assessments and up-to-date safety documentation. A free Health & Safety Toolkit offers ready-to-use templates, checklists, and toolbox talks aligned with key UK regulations such as the Health & Safety at Work Act 1974 and COSHH. Download the free Health & Safety Toolkit

Even mundane workplace rules fall under co-determination. Employment lawyers note that dress codes—such as banning national-team jerseys during major sporting events—require works council approval under Section 87 of the Works Constitution Act (Betriebsverfassungsgesetz). Experts advise companies to craft such rules neutrally, without discrimination, and in close coordination with employee representatives.

Brett Shapiro
Brett Shapirohttps://www.newscase.com/
Brett Shapiro is a co-owner of GovDocFiling. He had an entrepreneurial spirit since he was young. He started GovDocFiling, a simple resource center that takes care of the mundane, yet critical, formation documentation for any new business entity.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

spot_img