2002 works council elections start

Over March-May 2002, works council elections are taking place in German companies. These are the first elections since the 2001 reform of the Works Constitution Act (BetrVG), which governs the establishment and operation of works councils. The aims of the reformed BetrVG include increasing the number of works councils. The German Federation of Trade Unions (DGB) launched a campaign in February 2002 to support the works council elections, and one objective is to motivate employees to elect works councils in companies which do not have them at present.

Between 1 March and 31 May 2002, works council election s are taking place in German establishments under the terms of new Works Constitution Act (Betriebsverfassungsgesetz, BetrVG) passed in 2001 (DE0107234F). The BetrVG, which had previously remained almost unchanged for 30 years, determines the legal framework for co-determination at the establishment level in the private sector.

The highly disputed (DE0102242F and DE0103221N) reformed BetrVG has been in force since 28 July 2001. The current 'red-Green' government's aim in reforming the BetrVG was to make it more compatible with modern company and work organisation. The main focus of the reform is on measures to maintain and strengthen works council structures and to enable works councils to adapt to changed structures at establishment and company level. Various provisions to streamline the procedure for the election of works councils and to increase their size have been introduced and, further, the new Act will improve the representation of women on works councils. Moreover, the law seeks to give works councils a say in areas such as training, employment security, protection of the environment and fighting xenophobia and racism at the workplace.

Essential points of the reform

The former BetrVG was regarded as not being compatible with changes which have occurred in company and work organisation, and this was seen as the major reason for the decreasing spread of works councils in Germany (DE9702101F). Fundamental changes in companies' organisational structures have taken place through various forms of restructuring, owing to increasing numbers of mergers and acquisitions, a concentration on 'core' business activities and the outsourcing of peripheral activities. Additional factors have been the splitting of companies into various business units and profit centres and the introduction of 'lean management' methods. Changes in work organisation have taken place particularly through the introduction of various forms of group or team work, new flexible working time arrangements and the increased use of temporary work, subcontracting and teleworkers.

Works councils may be established in establishments with at least five employees. However, works councils are rare in small and medium-sized establishments. According to figures from the establishment panel of the Institute for Employment Research (Institut für Arbeitsmarkt- und Berufsforschung, IAB) in western Germany only 12.5% of private sector establishments with at least five employees, employing 49.5% of all employees in such establishments, had a works council in 2000. The equivalent figures for eastern Germany were 12.6% and 39.6%

Against this background, a central trade union demand in the reform of the BetrVG was to simplify the election procedure in order to make the establishment of a works council easier, particularly in small establishments. The new Act did indeed streamline the procedure.

Streamlined election procedure

The revision of the works council election procedure was the most disputed element of the draft reform of the BetrVG. The trade unions argued that the existing rules often kept employees in small and medium-sized companies from initiating the election of a works council. The employers, however, feared that a facilitated election procedure in companies with up to 50 employees would make it easier for small radical minorities to create works councils. Finally the government followed the unions' reasoning that there must be democratic way of representing employees' interests in small companies too, and introduced a 'streamlined election procedure' (vereinfachtes Wahlverfahren). The new Act provides for a simplified and less bureaucratic election procedure which reduces obstacles to establishing a works council. Furthermore, the new procedure should also contribute to reducing the costs of works council elections.

The streamlined election procedure is compulsory in companies with between five and 50 employees. In companies with between 51 and 100 employees, management and employee representatives can agree voluntarily to apply the streamlined election procedure as well. Under the streamlined procedure in companies without works councils, the election procedure is divided into two stages. First, an electoral board (Wahlvorstand) is set up and candidates for the works council nominated. After a period of one week, the actual election takes place. In companies with existing works councils, the nomination and election takes place during the course of a single meeting. The complicated and lengthy former rules provided for a period of six weeks between the nomination of the candidates and the election. There had been cases where employers in small and medium-sized companies reportedly made candidates feel insecure, with employees thus resigning as candidates before the election. It also became clear to critics that small companies have a different type of management which was not in line with the old election procedure.

In addition, the new BetrVG abolished the so-called 'group principle', according to which blue- and white-collar workers held separate elections for representatives of their group on the works council. This has been replaced by a single joint election for both groups.

'Equality quota' to promote women's representation

According to the German Federation of Trade Unions (Deutscher Gewerkschaftsbund, DGB), 43% of employees are women but only a quarter of all works councillors are female. A major aim of the new BetrVG is to improve the representation of women in works councils. At the centre of the new law is the so-called 'gender equality quota' ('Geschlechterquote'), which provides that the gender which is the minority within the establishment's workforce must be represented by at least a corresponding proportion of works council members. For the majority of establishments, this establishes a minimum quota for female representation.

Moreover, the new law acknowledges the special difficulties experienced by women in combining work and family life and provides for various measures to facilitate their participation on works councils. In addition, the Act now obliges the works council to contribute to real success in achieving equality between men and women.

Trade union campaign

DGB is spending EUR 2 million on a new campaign entitled 'I work well. Better with a works council.' ('Ich arbeite gut. Besser mit Betriebsrat'), launched in February 2002. DGB is seeking to motivate employees to elect works councils in companies where they currently do not exist - the so-called 'blank spots' ('weiße Flecken') - and, furthermore, to encourage women to run for election as works councillors. The campaign involves:

• the provision of extensive information online;

• regional telephone 'hotlines' for legal and practical questions about works council elections;

• the organisation of 'information evenings' both of a general nature and for women in particular, with the long-term aim of building networks for mutual exchange of experiences;

• contacting employers who are willing to cooperate in introducing works councils in small and medium-sized companies;

• a major public relations and press campaign;

• winning over public figures to support the creation of works councils;

• an 'information bus' touring the country during the period of the elections;

• campaign activities in front of company premises; and

• after-work parties starting with information and discussions, with a disco to follow.

At regional level, DGB has drawn up a wide-ranging programme of activities in cooperation with affiliated trade unions, which will provide support during the works council elections through various activities. For example, visits to major trade fairs have been used to present the works council elections. Also DGB-affiliated trade unions are providing extensive online information, including a 'frequently asked questions' section on the elections, specimen texts relating to the election procedure and information in languages other than German.

First results

The lengthy debates on the reform of the BetrVG and the trade union campaign appear to have attracted the attention of many employees in small companies and educated them about their right to elect works councils and the relevant procedures. According to the IG Metall metalworkers' trade union, first experiences show that the interest among employees in creating works councils has increased considerably increased since the last elections in 1998 (DE9810180F). In mid-April 2002, some half way through the election period, many new works council elections had taken place, especially in small companies. In the sectors covered by IG Metall, just under 150 new companies had established a works council so far, of which 42% were craft companies, 28% were in metalworking and electrical industrial enterprises and 8% in the information technology branch. In nearly all these companies, internal problems were reportedly the reasons for initiating an election. According to IG Metall, the simplified electoral procedure has been helpful for many employees.

Particularly in small companies, the interest in creating works councils has increased since the new law has been in force. The Office for Social Research (Büro für Sozialforschung) has been observing and analysing the works councils election since the reform of the BetrVG. According to the Office, the increased interest in the election of works councils is due not so much to the detailed legal provisions in the reformed law, but more to the detailed public discussions about the arguments for and against works councils in small companies.

The experiences of regional trade union representatives with the streamlined election procedure are, to date, somewhat different . On the one hand, in many cases the new procedure, with its reduced periods between nomination and election, is seen as supporting a prompt and smooth election in small establishments. On the other hand, much work has been necessary in the preparation of the elections. Moreover, there has often not been enough time to contact employees and make the trade union known among the workforce because of the short duration of the election procedure. The Office for Social Research has now started an online survey about works councils' experiences with the streamlined election procedure.

Commentary

The reform of the BetrVG was the first step towards extending the possibilities of introducing co-determination at the workplace, particularly in the large number of small and medium-sized companies without works councils. The second step is to make use of the new streamlined election procedure to reduce the 'blank spots'. The lengthy discussions about the reform of the BetrVG and the trade unions' campaign seem to have supported this aim.

Whether the public discussion has also been useful in increasing the number of women in works councils will be seen when the election results are available. However, the campaign conducted by DGB and its affiliated trade unions supports the aim of increasing the share of women in works councils. While the government's reform did not introduce a real right of co-determination for works councils relating to equal opportunities between men and women , the new law does offer many possibilities to support equality. So it depends on works councillors, both female and male, to use the possibilities offered by the new law by representing women's interests. (Verena Di Pasquale, Institute of Economic and Social Research, WSI)