co-determination


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co-determination

the German form of INDUSTRIAL DEMOCRACY in which all companies with more than 2000 employees are required to have an equal number of employee and shareholder representatives n the upper tier of a two-tier board of directors. However, full parity representation is not achieved (except in the coal and steel industries) because the chairperson, nominated by the shareholders, has a casting vote. In enterprises of 500-2000 employees one-third of the seats on the supervisory board are reserved for employee representatives. Employee representatives are nominated by the Works Council, elected by all employees in the company. These Councils have the legal right to co-determine with management methods and changes in WORK organization, hours of work, payments by results, HEALTH AND SAFETY regulations and discipline. To support them in this activity Works Councils have the right to DISCLOSURE OF INFORMATION from management. The Works Council system is formally separate from TRADE UNION representation but in practice union representatives are often deeply involved in the Works Council system. See BULLOCK REPORT, FIFTH DIRECTIVE, WORKER DIRECTOR, EUROPEAN WORKS COUNCIL.