I‑ Codetermination - Introduction
•Three different systems
–Coal and steel
–Large companies‑ over 2000 employees
–Small companies and public sector
•Three Levels of Codetermination
–Supervisory Board‑ degree of worker representation
–Management Board‑ Labor Director
–Works councils‑ Every firm with five or more employees
Codetermination – Introduction
Justified in terms of political rights, not economic efficiency

Coal and steel
Most complete power sharing

Large companies‑ over 2000 employees‑
Close to coal and steel
Crucial differences enable stockholder representatives to retain more complete control

Small companies and public sector
Closer to consultation than codetermination
Applies only to corporations so many small companies refuse to incorporate

Management Board‑ Labor Director
Coal and steel and large companies only

Works councils‑ Every firm with five or more employees
About 30% of firms which should have them don't
Mostly small firms