It was a long journey—but ultimately a very successful one: “With your contribution to the new compensation system, you’ve done a great job and can rightly be proud of the Silver Works Council Award,” said Marco Schmidt, head of the Active Workers in the Workplace department on the IG Metall Executive Board, in his laudatory speech at this year’s Works Council Day in Bonn. The award went to the works council of SMS Group GmbH in Mönchengladbach for revising its compensation system.
Pay systems are complex structures that are usually unable to adapt flexibly to changing realities. At SMS, changes in job functions and corporate mergers over many years had created a huge backlog of adjustments. “You convinced the employer to turn everything upside down and reorganize it from the ground up in a joint, broad-based process,” praised Marco Schmidt.
New Compensation System Introduced
“It was important to us as the employee representatives to jointly develop the modernization of the compensation systems and to handle the issue of compensation with great sensitivity,” says Tobias Tigges, Chairman of the General Works Council of the SMS Group in Hilchenbach. The collaboration between the works council and the employer leading up to the introduction of the new system in August 2024 was characterized by mutual trust and joint action. Through working groups and workshops, the compensation system was ultimately designed so that no one suffered losses and the majority of employees not covered by the collective bargaining agreement were brought back under it.
“It is very important and essential that all colleagues benefit from pay protection with no time limit,” emphasizes Tigges. “Potential pay losses within the collective bargaining framework were protected through wage indexation. Potential pay losses above the collective bargaining framework were protected through a static adjustment.”
Regulating AI for Employees
At recreational vehicle manufacturer Erwin Hymer in Bad Waldsee, on the other hand, the workforce is facing the introduction of more and more software with AI functions. “We have therefore set out to negotiate a group-wide framework works council agreement with management that provides employees with clear guidelines for the use of AI in our day-to-day work,” says Silvio Petschull, deputy chairman of the group works council.
They have succeeded in doing so. The works council has now been awarded the special “Artificial Intelligence” prize for this project. “You have taken the lead on an issue that is not yet on the active agenda of many committees,” said Peter Kippes, head of labor policy on the executive board of IG Metall, in his laudatory speech. “With your Group Works Council Agreement, you have demonstrated a level of foresight that is undoubtedly worthy of an award.”
The agreement that has now been concluded incorporates and refers broadly to the EU’s AI Regulation—but in some respects it even goes beyond the regulation’s minimum requirements. “We have ensured that our employees have sufficient AI expertise and that they receive immediate training when new systems are introduced,” says Petschull. The works council is particularly proud of the fact that the agreement—developed in collaboration with the group’s representative body for employees with severe disabilities—also explicitly addresses the integration of employees with disabilities.
Highlighting Successes
At agricultural machinery manufacturer AGCO Fendt in Marktoberdorf in the Allgäu region, voter turnout in the 2022 works council election was by far the lowest it had been in decades. Furthermore, the works council’s public relations efforts were invisible—virtually nonexistent. “The workforce had a very negative view of the works council and no understanding of the committee’s work and achievements,” says Michael Schnitzer, chairman of the company’s general works council. “We had to do something.”
And they did—with great success. For this, they were awarded the special “Public Relations” prize in Bonn.
The works council at the site has succeeded in establishing a wide range of effective public relations initiatives. The site now features a monthly podcast, weekly bulletin board posts, video campaigns, the launch of Instagram and TikTok accounts, content on its own online platform, and the use of Mentimeter polls at works meetings.
“All of this has been very well received by the workforce,” says Michael Schnitzer. “We’re very happy about it and will continue on this path.”
Working Together for Good Jobs
The award-winning projects clearly demonstrate that works council work pays off—for employees, for the company, and for each and every individual. And one thing is clear: Works councils are more important now than ever. Many companies are in crisis, cutting jobs, relocating, or closing down. IG Metall, the shop stewards, the works council, and the employees form a strong team here: Together, we make jobs fairer and more secure. Together, we ensure career prospects and secure fair pay.
Getting involved as a works council member is a good thing—and as a works council member, you’ll receive our full support: IG Metall provides newly elected works council members and newly formed works council committees with advice and practical assistance. We train works council members for their roles. We equip works council members with the knowledge they need on all key legal and economic issues. And we foster strong networking: We enable works council members to exchange ideas with other employee representatives at conferences, networking events, or seminars at our training centers.
Works council elections —our elections in the workplaces—will take place from March through May 2026. You, too, can run for office and help ensure good, secure jobs at your workplace.
