Survey examines effects of 2001 reform of Works Constitution Act

Dribbusch, Heiner

Overview

Article

Survey examines effects of 2001 reform of Works Constitution Act

Published: 19 May 2003

In March 2003, the Institute for Economic and Social Research within the Hans Böckler Foundation (Wirtschafts- und Sozialwissenschaftliches Institut in der Hans-Böckler-Stiftung, WSI) presented the first results of its third works and staff council survey (published in a special issue [1] of /WSI-Mitteilungen/, Vol. 56, No. 3, 2003). The survey was carried out in summer 2002 and included a representative number of establishments with 20 or more employees. The principal aim of the survey is to give a current overview of the situation of works council [2] s and (public sector) staff council [3] s in Germany and to monitor industrial relations at establishment level. A special evaluation of the survey data provides information on implementation of the 2001 reform of the Works Constitution [4] Act (Betriebsverfassungsgesetz, BetrVG) (DE0107234F [5]) with regard to the works council elections in 2002, and the development of relations between works councils and both employers and trade unions ('Wie gut kehren neue Besen? Das neue Betriebsverfassungsgesetz in der Praxis', Martin Behrens, in /WSI-Mitteilungen/, Vol. 56, No. 3, 2003).[1] http://www.boeckler.de/rde/xchg/SID-3D0AB75F-E62FCF5C/hbs/hs.xsl/169_27931.html[2] www.eurofound.europa.eu/ef/efemiredictionary/works-council-2[3] www.eurofound.europa.eu/ef/efemiredictionary/staff-council-0[4] www.eurofound.europa.eu/ef/efemiredictionary/works-constitution-0[5] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-working-conditions/works-constitution-act-reform-adopted

In March 2003, Germany's Institute for Economic and Social Research (WSI) presented the first results of its third works and staff council survey which – among other matters – examined the effects on works councils of a 2001 reform of the Works Constitution Act, and the development of relations between works councils and employers. The data indicate that, while members of works councils generally report that the 2001 reform has had positive effects, members of works councils in small enterprises complain about obstructions when exercising their participation rights.

In March 2003, the Institute for Economic and Social Research within the Hans Böckler Foundation (Wirtschafts- und Sozialwissenschaftliches Institut in der Hans-Böckler-Stiftung, WSI) presented the first results of its third works and staff council survey (published in a special issue of WSI-Mitteilungen, Vol. 56, No. 3, 2003). The survey was carried out in summer 2002 and included a representative number of establishments with 20 or more employees. The principal aim of the survey is to give a current overview of the situation of works council s and (public sector) staff council s in Germany and to monitor industrial relations at establishment level. A special evaluation of the survey data provides information on implementation of the 2001 reform of the Works Constitution Act (Betriebsverfassungsgesetz, BetrVG) (DE0107234F) with regard to the works council elections in 2002, and the development of relations between works councils and both employers and trade unions ('Wie gut kehren neue Besen? Das neue Betriebsverfassungsgesetz in der Praxis', Martin Behrens, in WSI-Mitteilungen, Vol. 56, No. 3, 2003).

New works council election procedure in practice

A reform of the works council election procedure was regarded as one of the cornerstones of the 2001 amendment of the Works Constitution Act. A new streamlined election procedure was introduced which applies to companies with between five and 50 employees and which can be adopted by a mutual voluntary agreement in companies with 51-100 employees. Trade unions hoped that this streamlined election procedure would make it easier to establish works councils in small enterprises, as it removes certain bureaucratic obligations, accelerates the election procedure and helps to reduce the risk of obstacles created by employers.

The results of the third works and staff council survey show that the new streamlined election procedure was the predominant choice for recent works council elections in establishments with up to 50 employees - see table 1 below. This was to be expected, as this new election procedure is the legal norm for those establishments.

**Table 1. Choice of works council election procedure, 2002 (%)**
Size of establishment	Streamlined election procedure	Streamlined election procedure based on voluntary agreement	Traditional election procedure	No answer given
5-50 employees	88	3	8	1
51-100 employees	7	42	49	2
101-200 employees	1	11	77	11
201-500 employees	2	4	82	13
501-1000 employees	1	3	83	14
>1,000 employees	0	2	85	14
Total	13	9	68	10

Source: WSI works and staff council survey (3rd survey), 2002.

However, the new election procedure - which had been a matter of concern for employers in the debate preceding the 2001 reform of the Works Constitution Act - was also adopted by way of voluntary agreements for over 40% of works council elections in establishments with 51 to 100 employees. This indicates that many employers took a pragmatic stance once the reform had come into effect.

Some 57% of the members of works councils elected under either of the two versions of the new streamlined election procedure said that the new procedure facilitated the election process in practice, while 15% said that this was not the case and 24% that it was impossible to assess (while a further 5% gave no answer). This shows a high level of acceptance for the new procedure among those works councils concerned.

The WSI survey indicates that, where works council elections take place, there are no signs of a diminishing interest on the part of employees. Some 31% of all respondents stated that the turn-out at the most recent election was higher than in the previous election in 1998, whereas 25% reported a lower turn-out and 39% said that the turn-out had been about the same as in 1998. Evaluating the situation more closely, however, a less encouraging situation can be identified in eastern Germany, where the percentages are more or less reversed compared with those in western Germany - ie 30% of respondents in eastern Germany reported a lower turn-out in 2002 compared with 1998 and only 26% a higher turn-out. As a general trend, the turn-out in small companies exceeds that in large companies.

The new election regulations were well received by the members of the works councils on the whole; 89% of respondents described the new election rules as 'good' or 'satisfactory', and only 3% said that they were 'inadequate' (6% gave no answer).

Release from work for works council members

The 2001 reform of the Works Consitution Act lowered the ratio of employees to works councillors released from work to perform their duties in general, and reduced the threshold for a works council to be entitled to one representative released form work full time from 300 to 200 employees. Furthermore the amended Works Consitution Act introduced the possibility for part-time release in order for employees to fulfil the tasks of a works council member. Whereas the employers’ associations had opposed the extension of paid release from work due to the associated costs, the trade unions viewed more generous release provisions as central to achieving an improvement in the operating conditions of the works councils.

The 2002 WSI works and staff council survey evaluated the extent to which works councils made use of these improved provisions. The data suggest that, in the wake of the reform, works councils have clearly not succeeded in making full use of the release options to which they are entitled. Whereas the 1999/2000 survey found no cases in which works councils did not made full use of their entitlement to full-time release, this was certainly the case in a considerable percentage of works councils monitored in the 2002 survey - see table 2 below.

**Table 2. Full-time release for members of works councils in practice, 2002 (%, N=1,397)**
Size of establishment (number of members of works councils legally entitled to full-time release)	Works councils not making full use of entitlement	Works councils making full use of entitlement	Works councils benefiting from more full-time releases than legally entitled
2,001-3,000 (5)	12	62	27
1,501-2,000 (4)	27	60	13
901-1,500 (3)	24	50	27
501-900 (2)	34	57	9
200-500 (1)	20	77	3

Note: Establishments with more than 3,000 employees are not included because of the very small number of cases in the sample.

Source: WSI works and staff council survey (3rd survey), 2002.

It appears to be the case that many active works council members are reluctant to take advantage of full-time release from work duties. It must be noted, however, that the situation is still in flux: as the works council elections had only recently been held in many of the companies in the survey in the summer of 2002, it is to be assumed that the level of utilisation of release options will increase over time. Moreover, the option of part-time release that was included in the law in 2001 certainly explains some of the cases where councils did not make full use of their entitlement to full-time release from work.

Development of relations with employers

Like the two previous works and staff council surveys (DE0102208F), the 2002 survey asked whether the work of the works council was hindered by the employer.

A comparison with previous surveys shows that the number of works council members who state that they 'often' have to force through their rights in the face of obstacles created by the employer is declining. Whereas in the 1997 survey 26% of respondents said that they were 'often' hindered in exercising their participation rights, this proportion fell to 11% in the 2002 survey.

Obstacles to the participation rights of works councils are found most frequently in small and medium-sized establishments below the threshold of 200 employees for full-time release of a works councillor. In this segment, 15% of respondents said that they still encountered such obstacles, compared with only 6% in establishments with between 501 and 1,000 employees.

Developments of relations with trade unions

According to the 2002 WSI survey, the percentage of members of works councils and staff councils who are members of one of the unions affiliated to the German Federation of Trade Unions (Deutscher Gewerkschaftsbund, DGB) is 78.8% - a slight increase compared with the 1999/2000 survey when the comparable trade union density stood at 76.2%.

More than half of works council members describe the support from the relevant trade union as 'good' (39%) or 'very good' (16%), while only 10% rate the quality and benefits of this support as 'inadequate'.

Despite the positive assessment of the support provided by the trade unions, members of works councils cite a number of further areas where they would appreciate more assistance. Alongside the well-known and established 'classics', such as seminars and working materials, the list includes, in particular, fast-track assistance from the unions.

Commentary

It appears from the findings of the 2002 WSI works and staff council survey that the new streamlined election procedure is not only welcomed by the works councils concerned, but has also convinced a significant number of employers.

The extended entitlement to release from work for members of works councils, however, has not been fully adopted by a considerable number of works councils. It remains to be seen whether this will change in the future. Support from trade unions certainly plays a key role in this area, as many works councils, particularly those in small and medium-sized companies, appear to find it hard to make their activities more professional 'under their own steam'.

Members of works councils demand a wide range of support services from their trade unions as well as direct problem-oriented assistance. As particularly rapid problem-specific support is very personnel-intensive, the expansion of these activities makes major demands on the personnel resources of the unions – demands that will not be easy to satisfy in times when funds are scarce. (Heiner Dribbusch, Institute for Economic and Social Research, WSI)

Eurofound recommends citing this publication in the following way.

Eurofound (2003), Survey examines effects of 2001 reform of Works Constitution Act, article.