PRESS RELEASE NO. 27/2020 IG Metall: Federal Labor Court (BAG) Submits Important Interpretive Question on Co-determination to the European Court of Justice

Frankfurt am Main – IG Metall has welcomed the decision by the Federal Labor Court (BAG) in the legal dispute against SAP SE, which ruled that co-determination via an SE participation agreement is relevant under European law in the context of conversion to a European Company (SE).

“This is a good day for workers and unions in Germany, whose expertise and diversity strengthen the cross-company perspective on the supervisory board,” said Christiane Benner, Second Chair of IG Metall, on Tuesday in Frankfurt. “By referring the legal dispute to the European Court of Justice (ECJ), the court will have to address the interpretation of the underlying EU directive and its requirements under European law for German SE law.”

The central issue will be whether union seats in companies with equal co-determination are among the components of employee participation that must be guaranteed at least to the same extent as under national law. “Referring the case to the CJEU is the logical step,” Benner emphasized. “Regardless of this, European and national lawmakers are called upon to close existing gaps in the laws to prevent further erosion of co-determination. The German Council Presidency must also put this issue on its agenda.”

Note to editors:

Since 2014, SAP has no longer operated as a stock corporation (AG) but as a European Company (SE). IG Metall, together with the ver.di union, has been leading the legal dispute over the allocation of seats and the unions’ right to nominate candidates.

Further information and press photos of Christiane Benner