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DGB calls for modernization: Strengthen participation for the future!
The DGB Lower Saxony is calling for a reform of the Works Constitution Act to strengthen co-determination in times of digitalization and climate change.
DGB calls for modernization: Strengthen participation for the future!
A significant reform process is underway in Lower Saxony that could raise employee participation in companies to a new level. On Friday, June 13, 2025, a joint motion for a resolution to modernize the Works Constitution Act was submitted by the Federal Council. The initiative enjoys broad support from several federal states, including Lower Saxony, Bremen, Brandenburg, Hamburg, North Rhine-Westphalia and Saarland. The German Federation of Trade Unions (DGB) Lower Saxony is pleased about this step and sees it as a necessary impulse for the needs of the modern working world.
Like DGB chairman Dr. Mehrdad Payandeh emphasizes that an update of the Works Constitution Act is more than overdue. With a view to challenges such as artificial intelligence and the climate-friendly restructuring of the economy, the expanded co-determination mode is seen as central to the trust of employees and the competitiveness of companies. In this context, the DGB highlights the need for precise reform measures to meet workers' expectations.
Extended co-determination required
The need for reform is not only reflected in the current political agenda, but is also supported by scientific studies. According to Buse.de, companies with co-determined structures have been proven to have higher productivity and economic success. In times of crisis, such as the financial crisis and the corona pandemic, many companies have had positive experiences with employee representatives. This leads to widespread criticism from trade unions that existing co-determination rights are no longer sufficient in times of climate change and new technologies.
To take this into account, the DGB has proposed six areas of action for expanding co-determination:
- Umweltschutz
- Gleichstellung
- Mitbestimmung für Beschäftigte bei Kirchen
- Persönlichkeitsschutz
- Regelungen zur Vergütung von Betriebsräten
Some of the specific suggestions include the formation of an environmental committee in companies with over 100 employees and the co-determination of the works council in production issues relevant to environmental and climate protection. In addition, regulations should be set for the release of works council members and the involvement of the works council in hiring and termination.
The challenges of the future
As is also emphasized on verdi.de, company co-determination faces major challenges arising from digitalization, internationalization and a social-ecological transformation. Experts from various sectors, including trade unions and universities, have drawn up a detailed legislative proposal that could serve as a framework for the reform. Not least 50 years after the last revision, an update of the Works Constitution Act is more than necessary.
However, the employers' associations are skeptical about the reform process and are calling for the existing law to be “dusted out”. It remains to be seen how the new federal government will react to these initiatives and whether it will take up the unions' suggestions in order to actually further develop co-determination.
In any case, one thing is certain: the challenges of the future require a good hand in redesigning co-determination rights. The next few weeks and months will show whether the momentum of the reform initiative can be translated into concrete improvements for employees.