Some Reflections on Developments in German Employee Codetermination Since 1976

Abstract

The latest German law on the codetermination of Supervisory Boards came into effect in July 1976. In one sense it was a major advance in the development of codetermination which some argue began 128 years previously when in 1848 the Constitutional National Assembly first established factory committees with certain rights of worker participation. It was also a compromise result of intensive political discussion and activity particularly in the period after Willy Brandt declared in 1973 that codetermination would be one of the 'main tasks' of his government. Germany industry has had a two-tier Board system since the 1880s. Under the provisions of the 1976 Act companies with more than 2,000 employees (481 enterprises in 1980) must have a Supervisory Board ('Aufsichtsrat') with equal representation for labour and capital, and an Executive Board ('Vorstard'). Under previous legislation (1952, 1972) the labour representation on the Supervisory Boards of joint stock companies (AG) had been limited to one third. The duties of the Supervisory Board include the appointment of the members of the Executive Board, one of whom must be a Labour Director (' Arbeitsdirektor').