Labor representative bodies in North Rhine-Westphalia facing mounting stress

Labor representative bodies in North Rhine-Westphalia facing mounting stress

Stand: 15.06.2025, 05:00 AM

Sweat drips down Thomas' brow as he clutches his walkie-talkie, eyes darting between the bustling airport crowd and the monitors showing planes land and take off. He's a security officer, and he works in silence, preferring to keep his identity hidden, fearing he might lose his job if his voice is heard. "I'm scared to speak up," he whisper-yells into the walkie-talkie, confessing to our magazine Westpol.

Works Councils: Wanted or Not?

Anja Weber, Chairwoman DGB NRW

When employees band together to fight for their rights, it often results in conflicts with companies, says Anja Weber of the German Trade Union Confederation (DGB) NRW. But it's not just the infamous "problem sectors" that sidestep the works council—Weber points out that even industries perceived as responsible can resist the idea.

The Shrinking Influence

Currently, 51 percent of employees in North Rhine-Westphalia have a collective agreement—a figure only slightly above the national average, but a far cry from past levels. In 1994, the collective bargaining coverage in NRW was 82 percent, and in 2020, it was still 57 percent. The same decline can be seen in the works councils—an analysis by the employer-affiliated Institute of the German Economy (IW) shows that, today, works councils exist in only about seven percent of companies nationwide, historically low. In 1996, almost twice as many companies had a works council. Meanwhile, the number of employees working in a company with a works council has fallen from 49 percent (1996) to 36 percent (2023).

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Roadblocks to Representation

A recent survey by the Institute for Economic and Social Research (WSI) supports these findings: In Germany, every fifth planned works council founding is hindered. Intimidation, threats, dismissals—particularly affecting medium-sized, owner-managed companies. Almost half of the affected employers enlist the help of specialized law firms or management consultants. The figures from WSI are based on scientific studies in which works and personnel representatives were asked about their experiences.

Johannes Pöttering, Managing Director unternehmer nrw

When asked about the persistent resistance to works councils, Pöttering explains, "The binding power of trade unions, parties, and associations is generally decreasing."

Time for an Update?

The state government is currently working on a responsible contracting law, and one is also announced in the federal government's coalition agreement. With such laws, state contracts would only be awarded to companies that also pay according to collective agreements. However, employer associations repeatedly argue that responsible contracting laws have been abolished in the past due to enormous bureaucratic hurdles.

Karl-Josef Laumann (CDU), NRW Minister of Labor

Laumann holds:

On Friday, an initiative for comprehensive modernization of industrial co-determination was on the agenda in the state chamber. The goal: to make the Works Constitution Act fit for digitalization, AI, and globalization—with a particular focus on a fixed digital access right for trade unions and better protection against union-busting. The term originates from the USA and describes the deliberate attempt by companies to suppress or sabotage union organization and co-determination in the workplace.

A hopeful step forward, according to the DGB chairwoman from NRW, Anja Weber:

AtunternehmerNRW, there's not much enthusiasm for the proposals—as Johannes Pöttering.

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Whether industrial co-determination ends as a relic or is reformable will not be decided in Berlin and Düsseldorf, but ultimately in each individual workplace.

Our sources:

• Interview with Anja Weber, DGB NRW• Interview with Johannes Pöttering, unternehmerNRW• Interview with NRW Minister of Labor Karl-Josef Laumann• Survey/study by the Institute for Economic and Social Science Research• Analysis by the Institute of the German Economy (IW-Report 1/2025)

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Insights:1. Economic Conditions: A weak economy can negatively impact the influence of works councils, as companies might downsize or restructure.2. Structural Change: Transitioning away from traditional industries can lead to changes in employment structures, potentially affecting the role of works councils in these regions.3. Regulatory Challenges: Bureaucratic hurdles and long approval processes can slow economic growth and impact the ability of works councils to effectively represent workers' interests.

1. Current Statistics:
2. Unemployment Rate: North Rhine-Westphalia had an unemployment rate of 7.5% in 2024, higher than the national average of 6%.
3. GDP Per Capita: The GDP per capita in North Rhine-Westphalia was €47,916 in 2024, slightly lower than the national average.
4. Proposed Solutions:
5. Enhancing Representation: Strengthening works councils in decision-making processes can protect workers' rights during restructuring.
6. Support for Transition: Providing training and support for workers transitioning to new sectors can help mitigate job losses and maintain economic stability, benefiting works councils.
7. Regulatory Reform: Streamlining bureaucratic processes could help improve economic conditions and support the role of works councils in negotiations and employee representation.
8. Fiscal Support: Investing in regions undergoing structural change could help create new job opportunities and maintain economic stability, benefiting works councils.

Germany's political landscape is considering updates to the Works Constitution Act to make it more modern and adaptable to digitalization, AI, and globalization. This proposed legislation aims to secure a digital access right for unions and enhance protection against union-busting.

Despite the decline in the influence and growth of works councils in North Rhine-Westphalia, more than one out of five planned works council foundings face obstacles, including intimidation, threats, and dismissals, particularly in medium-sized, owner-managed companies.

The state government is eager to address these issues comprehensively, as seen in the proposed responsible contracting law, which would only award state contracts to companies adhering to collective agreements. This legislation aims to provide an economic incentive for businesses to collaborate more closely with works councils.

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