Frankfurt am Main – For half a century, equal co-determination has ensured economic stability, greater resilience to crises, and sustainable corporate governance. A strong employee representation on the supervisory board supports workers and has equally positive effects on companies. New corporate structures, legal loopholes, and a growing mistrust of co-determination are increasingly jeopardizing its scope and effectiveness.
Christiane Benner, President of IG Metall, warns: “Co-determination and good cooperation have made Germany a strong industrial hub! In difficult times, when geopolitical upheavals are putting pressure on the country as an industrial hub, we should reflect on this precisely: We need more and stronger co-determination, not less. We must make co-determination future-proof!”
Ironically, on the anniversary of the passage of the Co-Determination Act, the European Commission plans to present a proposal on March 18 that could once again significantly weaken corporate co-determination. The “EU-Inc.” legal form planned as part of the 28th regime opens up new avenues for circumventing German corporate co-determination. This would entail considerable risks for workers across Europe, but especially in Germany, the continent’s strongest economy. Against this backdrop, IG Metall rejects the introduction of yet another European legal form.
The union also recognizes that works participation must be further developed in a meaningful way. To this end, it has put forward comprehensive reform demands, which it is reiterating on the occasion of this anniversary:
1. Extend co-determination to companies organized under foreign legal forms
More and more companies in Germany are using foreign and European legal forms to evade German co-determination requirements. The following must apply: Any company operating in Germany is also subject to German co-determination rules—regardless of its registered office or legal form.
2. Prevent circumvention through the use of other legal forms—in particular the Societas Europaea (SE)
The European Company (SE) is frequently used to freeze or avoid co-determination. A reform of SE law is necessary to prevent abuse and ensure dynamic co-determination.
3. Close the “gap in the one-third participation rule”
Certain groups of employees have so far been excluded from the calculation of employee numbers. This gap must be closed so that the statutory one-third representation includes all employees.
4. Introducing an effective sanctions regime and improving the right to file motions
- A system of sanctions for cases of unlawful failure to apply co-determination,
- A right for unions to file motions in status proceedings, including in matters of one-third representation.
5. Active advocacy by the federal government for an EU directive on employee participation
Europe needs binding minimum standards rather than new corporate structures. The federal government must advocate for an EU directive on corporate co-determination.
6. Lowering the threshold for equal co-determination to 1,000 employees
Democratic participation must also be ensured in modern corporate structures. The reality of companies in 1976 is outdated; co-determination must take this fact into account.
7. Abolish double voting rights—replace them with a minimum list of matters requiring approval and an arbitration procedure
All too often in recent years, we as a union have observed that supervisory board votes are no longer reached through dialogue, but rather that the employee side is outvoted due to the double voting right. This is not how social partnership works.
Further information and press photos of Christiane Benner
