Number of German Works Councils Hits Historic Low

Only 7% of companies in Germany now have works councils, reflecting a steep decline in workplace representation since 1996.

A new study reveals that just 7% of German companies have works councils, and only one-third of private-sector employees are represented by one.
Representation by works councils has dropped significantly from 49% of employees in 1996 to 33% today, with smaller companies less likely to have them.
Union leaders warn of an 'erosion of workplace co-determination' and call for stronger protections for those initiating council elections and penalties for election interference.
Employers criticize current labor laws as outdated and bureaucratic, favoring alternative models like employee representation bodies with fewer formalities.
The decline in works councils is linked to reduced union influence, lower collective bargaining coverage, and the rise of precarious employment in growing sectors like services.