Péone Pecking

A need for change?

German workers may take such extensive levels of representation for granted but the models used in the country are not typical of other rich economies — plenty of British and American observers have cast envious glances towards the German system over the years. Watch video 01:49

ThyssenKrupp employees protest merger plans

To what extent the high level of worker influence accounts for Germany’s economic success is debatable, though. Academic studies on the subject differ, but the majority of research suggests co-determination and works councils are positive, particularly when it comes to raising productivity.

The model has its critics though. Some, such as Reiner Hoffmann, chairman of the German Trade Union Federation (DGB), say it is becoming outdated, particularly given that increasingly fewer companies are fully covered by co-determination provisions.

Others see the system as entrenching the privileges of long-term workers at the cost of less secure employees, again, something that is possibly out of step with the realities of a modern labor market.

The system may need some kind of an upgrade, but its essence — that German workers should have a meaningful stake in their companies’ decision making processes — is surely here to stay.

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