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.
References in periodicals archive ?
He was aware of the importance of co-determination for the Group's success story.
Referred to as co-determination, this policy -- which has been proposed in the US by Senator Elizabeth Warren -- is often touted as a way to give workers more power to demand better wages and benefits.
In relation to this planned reorganisation, the company will initiate a co-determination procedure.
This is best illustrated by the case of Germany where the system of collective bargaining was further reinforced by the Law on Co-Determination, which requires companies with 2,000 or more workers to have in the company supervisory boards representatives of the workers, and for the smaller companies, to have 'work councils', or forums for sustained dialogue between management and the workers on various work and productivity issues.
the mine is currently undergoing co-determination negotiations, during which the completion of the underground mining of the mine will be clarified.
KEMET announced the intention of closing its Granna, Sweden manufacturing facility by initiating co-determination consultations with the local Swedish unions which start the legal consultation period under Swedish law.
(The term for such corporate-board splitting is co-determination.) But Warren was on the ballot in a solidly Democratic state, while Baldwin was running in purple Wisconsin.
He told the German delegation that "the way your co-determination system works where labor, government and business work together has been a window for us to look through and say there is something that we can learn." Ramaphosa added that "one of the challenges we're facing is a skills deficit, and there as well German can teach us a lot."
Complex governance structures in Germany, notably co-determination between different stakeholders, including management and employee representatives, and potential political intervention due to companies' status as national champions, could lead to lengthier timeframes than for similar cases in the US.
People should not take "peaceful cohabitation, co-determination and stable political conditions for granted," he warned.
The second feature of the German model is its "social market economy," best reflected in its unique system of industrial "co-determination." Alone among the major advanced economies, Germany practices "stakeholder capitalism." All companies are required by law to have works councils.
Furthermore, a new definition of "employment" is discussed (in order to protect economically dependent persons such as crowd workers, solo self-employed workers) and a new definition of the unit represented by the works council (to ensure co-determination rights in new decentralized structures).