Work councils' status in Mecklenburg-Vorpommern: An overview of their current standing and implications
Thriving or Struggling? The Fate of Worker Councils in Small Businesses
Working in organizations dominated by a handful of worker councils is a rarity in Mecklenburg-Vorpommern. This is surprising considering the employee co-determination guaranteed by law in businesses with more than five employees remains largely untapped in the northeast, even after over three decades of a social market economy. According to an study by the Institute for Employment Research (IAB) of the Federal Employment Agency (BA), only 29 percent of employees in MV now function in companies boasting a functioning works council — a sharp decline from 40 percent two decades prior.
Obstacles in the Path of Worker Councils
While large companies brim with 54 percent of employees relying on a works council, it’s a different story in smaller organizations. In businesses with more than five employees, fewer than one in ten firms have a works council, and this ratio narrows even more as the company size decreases. The IAB-Betriebspanel reports that only three percent of the myriad small and micro-enterprises (5-9 employees) sport a works council.
Sadly, several businesses employ underhanded tactics to discourage the creation of works councils. The IAB survey reveals that these tactics include intimidation, attempted dismissals of potential candidates, financial incentives for candidates to withdraw, and threats of expanding the company or splitting it apart. It is not uncommon for employees in owner-managed companies to remain hesitant to stand as work council members due to fear, uncertainty, or the impression that cooperation with the management may suffer.
Pursuit of Better Conditions
When properly established, works councils can bring about significant improvements in workplace conditions, hours, and regulations. Laura Pooth, chairwoman of the DGB North regional branch, hailed the efforts of employee representatives, saying, "Bravo to all colleagues - you're amazing."
Various studies have demonstrated that works councils contribute to increased productivity, higher wages, higher profits, increased investments, raised vocational training opportunities, and successful dual vocational training. Nevertheless, without works councils and co-determination, the interests and rights of employees be left at risk, according to the trade unions, as seen in the workers' reception hosted by Minister President Manuela Schwesig (SPD) ahead of International Labor Day on May 1st.
Distinguished Works Councils in Mecklenburg-Vorpommern
Amidst the sea of challenges, some works councils in MV continue to persevere. Three such works councils were honored during the state operating and personnel council prize competition in Schwerin:
- Amas Technology Neu Kaliß: The works council has been tirelessly advocating for more co-determination at the manufacturer of innovative solutions for production plants in the aerospace industry, simulator technology, and defense industry for years. In recognition of their efforts, the committee was awarded with the 2023 state operating and personnel council prize in the "Co-determination - rethought" category. The works council introduced regular departmental office hours to address the concerns, needs, and suggestions of their colleagues, encouraging better participation in co-determination.
- Workers from Wismar (Thyssenkrupp Marine Systems): The works council was honored in the "Co-determination - strengthened" category for its quick alignment of working conditions with those in the three western German locations.
- Employees at Prosegur Cash Services Germany in Rostock: The works council was honored in the "Co-determination - well integrated" category for implementing a working time model that takes into account the wishes of the employees and reduces bureaucracy.
These events emphasize the importance of workplace collaboration in fostering better employee rights, conditions, and opportunities within small and large businesses alike.
- Despite the rarity of worker councils in small businesses in Mecklenburg-Vorpommern, organizations within the health-and-wellness, science, and finance industries could greatly benefit from the establishment of these councils, as they have been proven to contribute to increased productivity, higher wages, and better employee rights.
- Notably, works councils in the business sector, such as Amas Technology Neu Kaliß, have been instrumental in advocating for more co-determination and better working conditions, as evidenced by their receipt of the 2023 state operating and personnel council prize.
- Effective workplace co-determination, as demonstrated by the Distinguished Works Councils in Mecklenburg-Vorpommern, not only improves workplace conditions and regulations but also promotes industry competitiveness, as exemplified by the increased investments and successful dual vocational training programs attributed to works councils.
