Works Constitution Act

The Works Constitution Act (German: Betriebsverfassungsgesetz, pronounced [bəˈtʁiːpsfɛɐ̯fasʊŋsɡəˌzɛt͡s] (listen)), abbreviated BetrVG, is a German federal law governing the right of employees to form a works council.[1]

History

In the Stinnes-Legien Abkommen 1918, at the collapse of the German Reich following World War One an agreement between trade union confederation leader Carl Legien and industrialist leader Hugo Stinnes, it was agreed that capital and labour would cooperate on an equal foot in all aspects of economic management. This was written into the Weimar Constitution, article 165. To implement this principle, in 1920 the legal predecessor Betriebsrätegesetz (Works Councils Act) mandated consultative bodies for workers in businesses with more than 20 employees. All voting rights and work councils were, however, abolished by Hitler in 1933, and replaced with Nazi controlled management bodies.[2]

After World War Two and the defeat of fascism, work councils were revived by collective agreements promoted under the Control Council Law No.22 (Kontrollratsgesetz No. 22) of the Allied-occupying forces in 1946. This enabled unions to create work councils with binding participation rights and be tasked with enforcing union collective agreements.[2][3]: 72 

1952 ratification

Subsequently, the agreements for work councils were codified in the Works Constitution Act, passed on 11 October 1952 in West Germany. Trade unions in Germany wanted much more,[4] including the formalisation of works council members as union representatives, and the expansion of the Coal Co-Determination Act in all industries, which in the Act only relegated 1/3rd of Supervisory Board seats for employee representatives, in contrast with parity for of coal industry.[3]: 74  Instead, the Conservative government emphasized in the law, the legal restrictions on works councils and their independence from trade unions.[3]: 64 

1972 major reform

In 1972 the Works Constitution Act was updated and reissued, and largely forms the current basis of the law. It strengthened works council power on the plant level, while subordinating works councils to trade union when it came to collective bargaining.[3]: 65 

Subsequent reforms since

In 2001, the Betriebsverfassungsgesetz strengthened the rights of workers marginally, and in 2021 the Betriebsrätemodernisierungsgesetz (Works Council Modernization Act) was planned to adjust co-determination over artificial intelligence in the workplace, allow digital meetings amongst other reforms.[5]

See also

References
  1. "Germany - Works Constitution Act". International Labour Organization. Archived from the original on 15 May 2022. Retrieved 21 February 2021.
  2. E McGaughey, 'The Codetermination Bargains: The History of German Corporate and Labour Law' (2016) 23(1) Columbia Journal of European Law 135
  3. Thelen, Kathleen Ann (1991). "The Origins of the Dual System". Union of parts : labor politics in postwar Germany. Cornell University Press. ISBN 978-1-5017-1756-7. OCLC 1037272916.
  4. "Works Constitution". Eurofound. Retrieved 21 February 2021.
  5. Becher, Anja (20 August 2021). "Germany's Works Constitution Act: Important Changes to the Law Effective June 2021". The National Law Review. Archived from the original on 30 November 2021.


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