Mitbestimmungsgesetz
Mitbestimmungsgesetz 1976 or the Codetermination Act 1976 is a German law that requires companies of over 2000 employees to have half the supervisory board of directors as representatives of workers, and just under half the votes. Background From 1922 to 1933, and again from 1951 Germany had had board level codetermination laws, inspired by collective agreements between worker unions and management. The Weimar Constitution 1919 itself said that, “Works and staff are appointed to participate with equal rights together with the company in the regulation of wages and working conditions, as well as in the complete economic development of the producing powers.” The coal and steel industry had required half worker and half shareholder seats on the company supervisory board, but outside these sectors, the Work Constitution Act 1952 merely required one third representation. By 1976, and given the success of worker participation it was decided that this should be raised. The 1976 Act was passed on May 4 after long consultations and debates in Parliament (the Bundestag). This law was a political compromise between the Social Democrats and Liberal coalition members; it reconciled views of individual employee participation in decision-making with the less conservative view of collective codetermination of