The Demise of Works Councils in Germany

Kohaut S, Schnabel C (2025)

Publication Type: Journal article

Publication year: 2025

Journal

Industrielle Beziehungen - Zeitschrift für Arbeit, Organisation und Management Rainer Hampp Verlag

Book Volume: 32

Pages Range: 5-28

Journal Issue: 2

DOI: 10.5771/0943-2779-2025-2-5

Abstract

This paper documents and analyses the demise of works councils in Germany in the period 2007-2022. Using representative panel data, we show that the share of plants with a works council has fallen in the private but not in the public sector in Germany. Almost two-thirds of employees in the private sector are not covered anymore by co-determination at the plant level. We present first evidence that entries and exits of firms have contributed to the reduction in works council coverage. Multivariate analyses indicate that plants' decreasing coverage by collective bargaining agreements, the growing relevance of alternative forms of worker representation, and the owner-management of a plant play important roles in explaining the (non-)existence and the dissolution of works councils. As our results paint a bleak picture for the future of plant-level co-determination in Germany, we critically discuss a number of policy measures to stabilize works council prevalence.

Authors with CRIS profile

Claus Schnabel Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik

Involved external institutions

Institut für Arbeitsmarkt- und Berufsforschung (IAB) der Bundesagentur für Arbeit (BA) DE Germany (DE)

How to cite

APA:

Kohaut, S., & Schnabel, C. (2025). The Demise of Works Councils in Germany. Industrielle Beziehungen - Zeitschrift für Arbeit, Organisation und Management, 32(2), 5-28. https://doi.org/10.5771/0943-2779-2025-2-5

MLA:

Kohaut, Susanne, and Claus Schnabel. "The Demise of Works Councils in Germany." Industrielle Beziehungen - Zeitschrift für Arbeit, Organisation und Management 32.2 (2025): 5-28.

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