Haipe e , Thomas
A icle — Published Ve sion
Cu en T ends o Ge man Code e mina ion by Wo ks
Councils: On Pa h Dependencies, E osion and Inno a ion
Indus ial Rela ions Jou nal
P o ided in Coope a ion wi h:
John Wiley & Sons
Sugges ed Ci a ion: Haipe e , Thomas (2025) : Cu en T ends o Ge man Code e mina ion by
Wo ks Councils: On Pa h Dependencies, E osion and Inno a ion, Indus ial Rela ions Jou nal, ISSN
1468-2338, Wiley, Hoboken, NJ, Vol. 56, Iss. 3, pp. 226-235,
h ps://doi.o g/10.1111/i j.12461
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/323763
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Indus ial Rela ions Jou nal
ORIGINAL ARTICLE
Cu en T ends o Ge man Code e mina ion by Wo ks
Councils: On Pa h Dependencies, E osion and Inno a ion
Thomas Haipe e
Ins iu e o Wo k, Skills and T aining, Uni e si y o Duisbu g‐Essen, Duisbu g, No h‐Rhine‐Wes phalia, Ge many
Co espondence: Thomas Haipe e ([email p o ec ed])
Recei ed: 15 Augus 2024 | Re ised: 23 Decembe 2024 | Accep ed: 1 Janua y 2025
Funding: The s udy was suppo ed by he Hans‐Böckle ‐Founda ion (HBS) and he Ge man Resea ch Founda ion (DFG).
Keywo ds: code e mina ion | e osion | pa h dependency | social inno a ion | ade unions | wo ks councils
ABSTRACT
This a icle is abou cu en de elopmen s o code e mina ion by wo ks councils as a co e ins i u ion o labou ela ions in
Ge many. I is a gued ha we can obse e se en di e en pa hs o de elopmen which poin in o di e en di ec ions, com-
bining p ocesses o e osion, unc ional change and social inno a ion in co‐de e mina ion.
1 | In oduc ion
Co‐de e mina ion o wo ks councils is one o he co e ins i u-
ions o Ge man indus ial ela ions. Toge he wi h collec i e
ba gaining i o ms he ins i u ional co ne s ones o he “dual
sys em”, as which Ge man indus ial ela ions a e o en
desc ibed and pe cei ed in in e na ional compa ison. This sys-
em is dual because i is based bo h on di e en legal no ms—
he Collec i e Ba gaining Ac and he Wo ks Cons i u ion
Ac —and on o mally independen ac o s such as wo ks
councils and ade unions, as well as on di e en egula o y
ins umen s such as collec i e ag eemen s and wo kplace
ag eemen s. Wi hin his amewo k, he a ena o collec i e
ba gaining au onomy deals wi h he gene al e ms o sale o
labou , while he a ena o co‐de e mina ion o wo ks cons i-
u ion deals wi h he speci ic condi ions o applica ion o labou
in he company (Mülle ‐Jen sch 2007).
This sys em o indus ial ela ions was long ega ded as a model
o success in compa a i e pe spec i e, bo h because o he
lexibili y o i s egula o y le els and because o he, a leas
empo a y, econcilia ion o compa a i ely good wo king con-
di ions o a b oad ange o employees and a high compe i-
i eness o companies on global ma ke s. In his sense, i has
been desc ibed as a cen al ea u e o coo dina ed ma ke
economies (Hall and Soskice 2001). Howe e , i is now ha d o
o e look he ac ha he ounda ions o his model o indus ial
ela ions a e c umbling. Only jus unde 40% o employees a e
s ill ep esen ed by wo ks councils, and jus unde 50% a e
en i led o he bene i s o collec i e ag eemen s. The model has
hus become a mino i y model, which s ill mainly ela es o he
manu ac u ing indus y, la ge companies and he public sec o .
A he same ime, a a ie y o changes can be obse ed wi hin
he s ill exis ing scope o he dual sys em, many o which cen e
on he co‐de e mina ion o wo ks councils. These include ec-
onic shi s be ween he egula o y le els o collec i e ba gain-
ing au onomy and wo ks cons i u ion, new app oaches o
coope a ion be ween wo ks councils and ade unions, new
o ms o employee in ol emen and pa icipa ion in wo ks
council wo k, shi s in he mul i‐le el sys em o co‐
de e mina ion and, inally, he ansna ionalisa ion o co‐
de e mina ion. Addi ionally, global ends like globalisa ion,
digi alisa ion, deca bonisa ion o demog aphic changes ha e o
be deal wi h a he wo kplace le el.
Agains his backg ound, his a icle will ake a close look a
hese changes in wo ks council co‐de e mina ion. The aim is
no somuch op o ideascomp ehensi eano e iewon
co‐de e mina ion li e a u e as possible, bu a he o iden i y
This is an open access a icle unde he e ms o he C ea i e Commons A ibu ion License, which pe mi s use, dis ibu ion and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly
ci ed.
© 2025 The Au ho (s). Indus ial Rela ions Jou nal published by B ian Towe s (BRITOW) and John Wiley & Sons L d.
226 o 275Indus ial Rela ions Jou nal, 2025; 56:226–235
h ps://doi.o g/10.1111/i j.12461
and s ess some undamen al lines o de elopmen in
Ge man co‐de e mina ion. This unde aking is based on own
esea ch al eady published by he au ho and, mainly, on
o he indings om li e a u e. In iew o he la ge numbe o
publica ions on he subjec hese indings a e p esen ed in a
selec i e way.
Discussing challenges and changes o wo ks councils'
code e mina ion has o deal wi h he pa adox ha al hough
he legal‐ins i u ional ounda ions o co‐de e mina ion in he
o m o he Wo ks Cons i u ion Ac ha e endu ed o e a long
e m, bo h he ac ual scope o co‐de e mina ion and he
p ac ice o in e es ep esen a ion ha e changed undamen-
ally. Wi h his in mind, he concep s o pa h dependencies
and o he o ms o ins i u ional change equi ed o his
discussion will i s be b ie ly p esen ed. Subsequen ly, he
changes o co‐de e mina ion will be analysed in mo e de ail
in se en lines o de elopmen . Finally, hese de elopmen s
will be discussed and e alua ed based on he concep s ou -
lined a he beginning.
2 | Pa h Dependencies and Ins i u ional Change
A cen al app oach o explaining he his o ical de elopmen o
ins i u ions such as Ge man co‐de e mina ion is pa h depen-
dency. This concep ecognises he ac ha ins i u ions— ules
o he game ha go hand in hand wi h no ms, cogni i e o i-
en a ions and esou ces and in his way can bo h es ic and
enable social ac ion (Giddens 1984)—o en ep oduce hem-
sel es ela i ely s able in he ac ions o ac o s o e longe his-
o ical phases. Ins i u ional ep oduc ion can be explained
by h ee causal mechanisms (Campbell 2010). The i s o hese
is he e e ence o ‘inc easing e u ns’. Wi h ega d o
co‐de e mina ion, om he company's pe spec i e hese can
a ise om he paci ica ion o labou ela ions, he educ ion o
ansac ion cos s h ough collec i e wo kplace ag eemen s o
new ideas om wo ks councils; om he employees' pe spec-
i e, he eliabili y o e ec i e ep esen a ion o in e es s and
he imp o emen o hei own nego ia ing posi ion h ough
collec i e s eng h a e likely o ake cen e s age.
A second mechanism ela es o he ing ained na u e o cog-
ni i e and no ma i e o ien a ions. This ‘ aken o g an ed’o
anins i u ionischa ac e isedbyac ionsc ip saswellas
o mal and in o mal no ms which a e ega ded as legi ima e
and expec ed. Because and as long as co‐de e mina ion and
he exis ence o wo ks councils a e aken o g an ed, he e
a e ew easons o c i ically ques ion hem. Thi d and inally,
pa h dependencies can be explained by ins i u ional in e -
dependencies and complemen a i ies. Companies ha ocus
on quali y p oduc ion o demanding ma ke s wi h quali ied
employees and high employmen s abili y a e likely o do well
wi h wo ks councils ha suppo he implemen a ion o hese
s a egies and also demand hem when company managemen
wan s o educe i s in es men s in quali ica ion, job secu i y
and echnological equipmen . In his si ua ion, he ins i u ion
o wo ks councils s abilises he chosen pa h, jus as i bene i s
om he i wi h o he ins i u ions like he oca ional aining
sys em by adhe ing o his pa h.
I is hese mechanisms ha can explain o a la ge ex en he
ins i u ional s abili y ha has been obse ed in he co‐
de e mina ion o wo ks councils in Ge many since he 1950s
and in o he 1990s. De elopmen s like he inc ease in he
e ec i eness o in e es ep esen a ion which we e obse ed in
he 1980s (Ko ho 1994) can ce ainly be econciled wi h he
concep o pa h dependency because hey con ibu ed o a
s eng hening o co‐de e mina ion as an ins i u ion in he sense
o lea ning p ocesses. The p e equisi e o his was ha he
wo ks councils lea ned o ac ually make use o hei ins i u-
ional powe esou ces, such as co‐de e mina ion igh s, and o
de elop o ganisa ional powe esou ces oge he wi h he ade
unions.
Howe e , his in e play o esou ces and lea ning p ocesses
los i s igou in he 1990s. I was again Ko ho (1995) who,
unde he new imp ession o globalisa ion and compe i ion
be ween loca ions, spoke o eg essions in e ms o he e ec-
i eness o wo ks councils. As will be desc ibed below, he
ins i u ion has los i s binding and o ma i e powe since his
ime. This poses a se ious p oblem o he explana o y powe
o pa h dependency.
The explana ion gi en by Mahoney and Thelen (2010)a gues
wi h he dis ibu ion o powe and esou ces and hei
dynamics. In his iew, ins i u ions a e based on his o ical
comp omises be ween s a egically o ien a ed—and abo e all
collec i e—ac o s and e lec ce ain cons ella ions o powe
and esou ces. A he same ime, ins i u ions c ea e esou ces.
In he case o co‐de e mina ion, o example, hese a e hei
legi imised co‐de e mina ion claims o wo ks councils o
hei endowmen wi h pe sonnel esou ces ha a e p esc ibed
by law.
Shi s in powe and esou ce posi ions can lead o indi idual
ins i u ional ules being applied di e en ly, changed o e en
called in o ques ion comple ely. This is pa icula ly ue a
poin s whe e he ins i u ional ules lea e oom o di e en
in e p e a ions and whe e hey a e di icul o en o ce. Such
challenges a e o be expec ed in pa icula when he dis ibu-
ion o powe esou ces shi s in a ou o he g oup o ac o s
who eel disad an aged by he ules. In he case o co‐
de e mina ion, hese a e he companies ha no longe see
co‐de e mina ion as a bene i , bu a he as a es ic ion on
co po a e decision‐making so e eign y.
On his basis, S eeck and Thelen (2005) dis inguish be ween
a ious o ms o g adual ins i u ional change. These include he
addi ion o new unc ions o exis ing ins i u ions (‘laye ing’),
he eplacemen o old ins i u ional models wi h new ones
(‘ eplacemen ’), he change in he en i onmen o an ins i u ion
and i s associa ed change in meaning o unc ion (‘d i ’), he
ans o ma ion o he goals and unc ions o an ins i u ion while
e aining i s o mal s uc u e (‘con e sion’), and he loss o
signi icance and in luence o an ins i u ion (‘exhaus ion’). All
s ong o ms o change, in which he cha ac e o signi icance
o ins i u ions changes undamen ally, a e in his pe spec i e
he esul o in ended p ocesses in which he de ende s o an
ins i u ion ha e los powe and esou ces o i s c i ics. This
applies o o ms such as eplacemen and ans o ma ion, bu
also o exhaus ion, i i is ac i ely pu sued.
227 o 275
The key ole o he ac o s and hei powe esou ces allows
ins i u ional change o be hema ised beyond he igid concep
o pa h dependency. Howe e , his goes hand in hand wi h he
need o conside he de elopmen o ac o cons ella ions o e a
longe pe iod o ime. O he wise, he e is a dange o de i ing
long‐ e m p ocesses om selec i e changes in powe posi ions
and o e looking he ac ha ac o s can lea n, de elop new
capaci ies o ac o ap in o and u ilise new esou ces—and hus
in luence he dis ibu ion o esou ces in u n.
This idea will be impo an o unde s and he wo e y di e en
dynamics ha ha e become inc easingly cha ac e is ic o
Ge man co‐de e mina ion: on he one hand, con as ing de el-
opmen s wi hin co‐de e mina ion, i.e. s eng hening in one
segmen and weakening in ano he , and on he o he , he
signi icance o ins i u ional inno a ions as an independen o m
o ins i u ional change ha is no included in he ypology
desc ibed abo e. The discussion abou pa h dependencies and
o he o ms o ins i u ional change o ms he backg ound o
he ollowing analysis o di e en lines o de elopmen in
co‐de e mina ion, om which se en de elopmen s—wi hou
claiming o be encompassing—a e highligh ed.
3 | Se en De elopmen s in Co‐De e mina ion
3.1 | E osion and Exhaus ion
The i s de elopmen is he declining sp ead o wo ks councils
as an ins i u ion. This de elopmen is easy o iden i y as ex-
haus ion o e osion. As Figu e 1shows, he p opo ion o em-
ployees co e ed by wo ks councils has allen by mo e han 10
pe cen age poin s o e he las a ound 20 yea s, om 52% in
2000 o jus 41% in 2023. This end is s ongly connec ed wi h
he dec ease in he p opo ion o employees wo king in com-
panies wi h a collec i e ba gaining ag eemen , which ell by 18
pe cen age poin s du ing his pe iod. As a consequence, in 2023
abou 42% o he employees in Ge many we e nei he co e ed
by a wo ks council no by a collec i e ba gaining ag eemen .
The s ong link be ween wo ks councils and collec i e ba -
gaining ag eemen s is wo old: on he one hand, wo ks councils
end o pu p essu e on managemen o join he employe s'
associa ions o o nego ia e an ag eemen di ec ly wi h he ade
unions, and, on he o he hand, unions p esen in companies
wi h collec i e ba gaining ag eemen s use o ini ia e wo ks
councils' elec ions.
Howe e , his end o e osion shows some se ious di e ences
when compa ing sec o s. I is possible o dis inguish h ee
wo lds in o which he Ge man indus ial ela ions sys em has
spli (Sch oede 2016). In he i s wo ld o he expo indus y
and la ge companies, he ins i u ions o he dual sys em con-
inue o ha e a s ong binding o ce. The second wo ld is
cha ac e ised by he ac ha hese ins i u ions s ill exis o
some ex en o , as in he case o collec i e ag eemen s, ha e an
in o mal impac . In he hi d wo ld, inally, he ies o hese
ins i u ions a e la gely se e ed; he e we can speak o a (ma ke )
libe al model o labou ela ions.
Figu e 2con as s h ee indus ies—in es men goods, con-
s uc ion and e ail— o illus a e his hesis. In es men goods
is an indus y ha ep esen s he i s wo ld. He e, s ill he
majo i y o employees is co e ed by collec i e ba gaining
ag eemen s and wo ks councils; nea ly se en ou o 10 em-
ployees wo k in an es ablishmen wi h wo ks councils. The
cons uc ion indus y is an example o he second wo ld; he e,
collec i e ba gaining co e age is high a jus unde 60%, bu he
p opo ion o companies wi h wo ks councils is only 11%.
Finally, e ail is an example o he hi d wo ld, wi h collec i e
ba gaining ag eemen s co e ing less han one ou h o he
employees and wo ks councils only one ou o 10 employees.
A key ac o in he sp ead o wo ks councils is he size o he
company. In gene al, wo ks councils a e a mo e widesp ead in
la ge companies han in smalle companies: While he p o-
po ion o wo ks councils among employees in companies wi h
mo e han 500 employees is 96%, i is only 7% in companies
wi h i e o 50 employees. In con as , he decline in he p e -
alence o wo ks councils has been g ea es in he company size
ca ego y be ween 51 and 500 employees in ecen decades and
was 13% highe han he a e age (Ellgu h and T inczek 2016).
The main easons o his a e he lowe p e alence o unionised
employees in hese companies, weake ela ionships be ween
ade unions and wo ks councils and a lack o accep ance
o wo ks councils by managemen (A us, K ae sch, and
Röbenack 2016), whe eby he la e appea s o be inc easingly
FIGURE 1 | Co e age o collec i e ba gaining ag eemen s and wo ks councils by employees 2000–2023 (Hohendanne and Kohau 2024).
228 o 275 Indus ial Rela ions Jou nal, 2025
linked o wo ks council a oidance s a egies modelled a e
union‐bus ing o US companies (Beh ens and D ibbusch 2020).
The end owa ds a decline in co‐de e mina ion hus
combines new co po a e o ien a ions and s a egies agains co‐
de e mina ion and he implemen a ion o i s ins i u ionalised
ules wi h a g owing weakness in he powe and esou ces o
ade unions as he mos impo an suppo e s o wo ks
councils.
3.2 | Wo ks Councils as Co‐Manage s and
S a egic Co‐De e mina ion
The deba e abou co‐managemen has i s oo s in he ea ly
1990s (Mülle ‐Jen sch 2007; Ko ho 1994). A ha ime, wo
qui e con adic o y de elopmen s in co‐de e mina ion ha e
been obse ed. On he one hand, wo ks councils in he co e
indus ial sec o s we e ac i e as p omo e s o eam wo k and
pa icipa i e managemen concep s. Wo ks councils cam-
paigned, albei wi h a ying deg ees o in ensi y and success, o
he in oduc ion o inno a i e eam concep s based on unc-
ional in eg a ion and ex ended scope o pa icipa ion and
au onomy o he employees. On he o he hand, new opics
such as globalisa ion and whipsawing eme ged, and in he
poli ical deba es o ha ime collec i e labou s anda ds we e
c i ically ques ioned as an obs acle o compe i i eness. Com-
panies p ac ised new es uc u ing s a egies in which mobili y
o capi al, eloca ion o p oduc ion and ou sou cing o ac i i ies
o o he companies played a majo ole. Sa egua ding o loca-
ions and jobs hus de eloped in o a new co e ask o wo ks
councils (Dö e 2002).
In line wi h his si ua ion, he concep o co‐managemen was
cha ac e ised om he ou se by wo con as ing emphases.
Acco ding o he mo e o ensi e e sion, wo ks councils de e-
loped new co‐de e mina ion claims o new issues such as
pa icipa i e o ganisa ional concep s (Mülle ‐Jen sch and
Sei z 1998). In he de ensi e in e p e a ion, on he o he hand,
co‐managemen e e s p ima ily o an “economis ic”pe spec-
i e o job secu i y, bu no o an ex ension o co‐de e mina ion
in o new ields like wo k o ganisa ion (Ko ho 1994, 54).
Since hen, no leas because o he g owing impo ance o
sa egua ding loca ions and employmen , de ensi e in e p e a-
ions o co‐managemen ha e become mo e and mo e
p e alen (Ko ho 1998). Rehde (2003) explici ly e e ed
co‐managemen o alliances o sa egua d employmen by con-
cession ba gaining a he wo kplace, which can go hand in
hand wi h legi imisa ion p oblems o wo ks councils
(Rehde 2006). In addi ion, Beh ens and Käd le (2008) poin ed
ou ha he new es uc u ing s a egies o companies a e un-
de mining co‐managemen . This is due o he ac ha he
wo ks councils' oppo uni ies o in o ma ion and pa icipa ion
a e a weake in he case o ou sou cing o eloca ions ab oad
han in he case o he in oduc ion o eam wo k, which was
he aim o he o ensi e o ms o co‐managemen .
O ensi e co‐managemen was p ima ily a phenomenon o
co‐de e mina ion in la ge companies. I was he esou ce‐ ich
and p o essional wo ks councils o hese companies wi h high
ade union densi y—especially in he au omo i e indus y—
ha de eloped and demanded new concep s o wo k o ganisa-
ion oge he wi h he ade union IG Me all in he ea ly 1990s
(Bahnmülle and Salm 1996; Kuhlmann, Spe ling, and
Balze 2004). A he same ime, i is also hese companies in
which new ends in co‐de e mina ion a e now eme ging. The
wo ks councils he e eac ed o he p oblems o co‐managemen
and de eloped new con ou s o wha can be called a s a egic
code e mina ion, as can be obse ed in he example o he
au omo i e company VW.
A he hea o his s a egic code e mina ion is he ex ension o
co‐de e mina ion claims o co po a e s a egies. This includes
issues ela ing o long‐ e m pe sonnel planning, in es men
s a egies o loca ion and ou sou cing decisions which a e mo e
and mo e d i en by digi al o ecological ans o ma ions. This
ex ension is based on he assessmen by he wo ks councils ha
code e mina ion can be all he mo e e ec i e he ea lie i is
applied o co po a e decisions. Ul ima ely, his s a egy is abou
a mo e p oac i e o m o sa egua ding o jobs in an e a o
ans o ma ions which s a s al eady a in es men s. O cou se,
his does no mean ha wo ks councils can ac ually ha e a say
in all o hese issues; i is well known ha hei legal igh s o
co‐de e mina ion a e he smalles in hese a eas. Howe e , a
FIGURE 2 | Co e age o collec i e ba gaining ag eemen s and wo ks councils by employees in selec ed sec o s 2023 (Hohendanne and
Kohau 2024).
229 o 275
leas in indi idual cases, such as a VW, i can be obse ed ha
wo ks councils a e mo e closely in ol ed in in es men plan-
ning and a e able o de elop and success ully nego ia e hei
own concep s o he de elopmen o loca ions and jobs
(Haipe e 2019).
Howe e , his p oac i e s a egy equi es a g ea e
esou ces and expe ise on he pa o he wo ks councils.
Wo ks councils mus be able o de elop hei own al e na i e
concep s and pu o wa d good a gumen s. A numbe o
p e equisi es can be iden i ied o his: de eloping and
adap ing hei own o ganisa ional s uc u es, o example by
eo ganising he wo k o hei commi ees; o ganising ech-
nical suppo om specialis ad iso s; inco po a ing he ex-
pe ise o employees; imp o ing he a icula ion wi hin he
mul ile el sys em o code e mina ion; and, inally, a mo e
ac i e di ision o labou wi h he ade union.
Mos o hese poin s, in u n, o m de elopmen s o
code e mina ion o hei own, which a e discussed below. Wha
hey ha e in common is ha hey a e inno a i e; he ans o m
he way in which wo ks councils ac . A leas wi h ega d o he
co e g oup o s a egic wo ks councils, con e sion, he e o e,
does no lead o a loss o impo ance o co‐de e mina ion, bu is
a he he s a ing poin o inno a ions and new ac i i ies o
wo ks councils.
3.3 | Decen alisa ion o Collec i e Ba gaining
Sa egua ding loca ions and employmen is, a he same ime,
he d i ing o ce behind a hi d de elopmen in co‐
de e mina ion, opening clauses o de oga ions om collec i e
ba gaining ag eemen s a he wo kplace le el, which a e asso-
cia ed wi h conside able new demands on wo ks councils.
Following T axle (1995), his de elopmen can be called o -
ganised decen alisa ion.
O ganised decen alisa ion in Ge man indus ial ela ions had
i s o igins al eady in he 1980s, when ade unions and em-
ploye s' associa ions s a ed o delega e he egula ion o
wo king ime lexibili y o he company le el, a he same ime
as educing wo king hou s. In his way, o ganised decen-
alisa ion is, he e o e, a ma e o he delega ing compe encies
o wo ks councils wi hin a amewo k o s ill binding collec i e
ba gaining s anda ds, which was possible because wo ks
councils ha e ex ensi e igh s o code e mina ion in wo king
ime issues.
F om he ou se , a con o e sy was conduc ed in he li e a u e
as o wha consequences would be associa ed wi h he in e -
nalisa ion o wo king ime. The p e ailing and ho oughly
scep ical iew a he ime was based on he assump ion ha
he ans e o egula o y compe ences would lead o wo ks
councils being o e bu dened in company nego ia ions wi h
managemen (Schmid and T inczek 1999). In o he e alua-
ions, howe e , his de elopmen was assessed mo e op imis-
ically as an exp ession o he pa icula lexibili y and
adap abili y o he Ge man indus ial ela ions sys em, based
on a a iable in e play be ween collec i e ba gaining
au onomy and wo ks cons i u ion as he pilla s o he dual
sys em (Tu ne 1998).
Be i as i may, his o m o o ganised decen alisa ion la e was
complemen ed by opening clauses in collec i e ba gaining
ag eemen s on de oga ions om he s anda ds o collec i e
ag eemen s a company le el. Di e en om wo king‐ ime
lexibili y, he ade unions ied o moni o and coo dina e he
nego ia ions o such de oga ions ac i ely, d i en by he conce n
o p e en an uncon olled expansion o de oga ion ag eemen s
in he companies (Haipe e 2011).
In doing his, he ade unions de eloped new s a egies in
con lic s abou de oga ions. Fi s ly, hei ocus was on membe
pa icipa ion and o ganising. This was in ended o open up
oppo uni ies o union membe s o exe in luence, bu also o
inc ease he legi imacy o he p ocess and, abo e all, he
a ac i eness o he ade unions. Pa icipa ion in o m o
o ing was planned a he wo cen al in e aces o he nego i-
a ion p ocess: The decision o s a nego ia ions and he deci-
sion o accep a nego ia ion esul . Secondly, he ade unions
ied o de elop a close coope a ion wi h he wo ks councils, as
a ade union canno nego ia e de oga ion ag eemen s wi h any
p ospec o success wi hou and agains he wo ks councils.
Al hough he union is in cha ge o nego ia ions, he wo ks
councils usually play a cen al ole in he ba gaining commi -
ees. Wo ks councils, shop s ewa ds and he union as leade o
nego ia ions ha e o coo dina e hei in e es s and de elop join
goals and s a egies. In his way, hese ac o s wo k a mo e
closely oge he han usual in he Ge man dual sys em, b inging
he wo pilla s o he sys em close oge he . This can be seen as
an ins i u ional inno a ion, a new s a egic esponse o he d i
caused by he ec onic shi s in he collec i e ba gaining sys em.
3.4 | Ac i a ion o he Wo ks Councils
The s a ing poin o he ac i a ion o wo ks councils by
ade unions indeed was he expe ience o de oga ions om
collec i e ag eemen s and he g owing p essu e on wo ks
councils o g an concessions in he ace o compe i ion
be ween loca ions and ou sou cing o o he companies. Fo
his eason, ade unions—and he IG Me all in pa icula —
ocussed on s eng hening esou ces and capabili ies o wo ks
councils o ace hese challenges. As he mos impo an
means o achie ing his goal, a new app oach o ade union
company policy was launched: he ac i a ion p ojec s. The
ac i a ion p ojec s a e ano he exp ession o social inno a-
ions in co‐de e mina ion.
The i s ac i a ion p ojec o IG Me all, which hen se ed as a
model o la e campaigns, was he “Be e ins ead o cheape ”
campaign, which was launched in he middle o he 2000s (see
Haipe e 2013). The s a ing poin he e was also de oga ions
om collec i e ag eemen s; he ques ion was how de oga ions
could be p e en ed in ad ance o , i hey we e al eady
una oidable, how hey could be nego ia ed wi h be e esul s
o he wo ke s. The co e idea was o enable wo ks councils o
de elop al e na i es o cos ‐cu ing and ou sou cing s a egies o
companies o eplace cheape solu ions wi h be e ones.
230 o 275 Indus ial Rela ions Jou nal, 2025
In he p ojec , he ade union p o ided ad ice o wo ks
councils by ade union‐ ela ed consul an s in speci ic si ua-
ions ela ing o es uc u ing o eo ganisa ion. Pa icipa ion
also played a cen al ole he e: he ad iso s in ol ed he em-
ployees as expe s in hei wo k, whe he h ough wo kshops,
on‐si e app oaches o su eys. In his way, expe knowledge
ha was no a ailable o managemen could be used o de elop
al e na i e s a egies.
This idea inspi ed mo e ecen ade union campaigns like
“Wo k 2020 in NRW”. The aim he e was o enable wo ks
councils, suppo ed by ad ice and guidance om ade union
p ojec sec e a ies, o d aw a map o digi alisa ion in he com-
pany, iden i y labou policy issues and p oblems and en e in o
nego ia ions wi h company managemen on “ u u e ag ee-
men s”in which p ocesses o dealing wi h he challenges—o
digi alisa ion and beyond—a e de ined (Haipe e 2020). The
app oach is, he e o e, simila o ha o he IG Me all Execu i e
Boa d p ojec “Labou and Inno a ion”, which was launched in
2016. He e, wo ks councils a e o be empowe ed in aining
cou ses o p oac i ely in luence echnological change. In con-
as o “Wo k 2020”, howe e , he majo i y o he consul a ion
does no ake place in he companies on si e, bu in he union's
aining cen es, combined wi h a quali ica ion se ies o ganised
by he RUB/IG Me all Join Cen e (Schä e s and Sch o h 2020).
The ac i a ion p ojec s hus aim o es uc u e he di ision o
labou be ween wo ks councils and he ade union. Whe eas
his di ision o labou was p e iously cha ac e ised by a mos ly
eac i e o ien a ion o he ade unions as se ice p o ide s o
he needs and eques s o he wo ks councils, unde he
auspices o he ac i a ion p ojec s, ade unions a e aking on a
new ole as issue se e s and d i e s o mo e ac i e co‐
de e mina ion, which migh also s eng hen hei p esence in
he companies. Fo wo ks councils, pa icula ly in smalle
companies, his means new oppo uni ies o imp o e hei
capabili ies o ac by acqui ing new esou ces and compe ences.
Howe e , i should be no ed ha , by hei e y na u e, ac i a-
ion p ojec s ini ially ha e a limi ed impac in e ms o hei
sp ead. Howe e , his does no a ec he claim o ade unions
o ake on a mo e ac i e ole in companies.
3.5 | Pa icipa ion and Inno a ion
This ac i a ion is, in u n, closely linked o a i h de elop-
men in co‐de e mina ion, he ocus on pa icipa ion and
inno a ion and he associa ed in ol emen o employees in
he ac i i ies o wo ks councils. New legal ounda ions o
his we e c ea ed back in 2001 as pa o a e o m o he
Wo ks Cons i u ion Ac . He e he possibili y o delega ing
asks o wo king g oups (§ 28.a WCA) and o ganising suppo
om expe employees (§80 (2) WCA) was in oduced.
Howe e , hese op ions emained li le u ilised o a long
ime. The “p oxy model”o in e es ep esen a ion p ac iced
by wo ks councils showed a high deg ee o pe sis ence. I was
no leas he ac i a ion p ojec s—and he posi i e expe iences
o he collec i e ba gaining de oga ion wi h employee
pa icipa ion— ha b ough a new dynamic o he opic o
pa icipa ion and hus p omo ed social inno a ions.
A u he line o de elopmen is o med by he o ganising in-
i ia i es o ade unions, which aim o win o e employees as
o e s o wo ks councils, as ac i e in e es ep esen a i es on
wo ks council commi ees, and, abo e all, as membe s o ade
unions. He e oo, employee pa icipa ion plays a key ole.
Ini ia i es like hose designed o o ganising whi e‐colla
wo ke s in he manu ac u ing sec o a e a kind o labo a o y
o di e en o ms o pa icipa ion, such as join wo king
g oups o wo ks councils and employees o su eys made wi h
employees. Acco ding o esea ch indings, employees g ea ly
app ecia e o be app oached by he wo ks council as expe s. As
a esul , wo ks councils no only gain expe ise, bu also legi -
imacy (Haipe e 2016).
Complemen a y and, as in he case o “Be e ins ead o
cheape ”, linked o new o ms o pa icipa ion by employee
ep esen a i es, he e a e also inc easing indings ha wo ks
councils ac as d i e s and p omo e s o inno a ion
(Ge lach 2012; K iegesmann, Kley, and Kublik 2012). How-
e e , he “social dimensions o he inno a ion p ocess in
companies”(Schwa z‐Koche e al. 2011)a ea hecen eo
his. Wo ks councils—asexpe so hecompaniesand hei
o ganisa ion—a e ac i e conce ning o ganisa ional inno a-
ions ha a e aimed a wo k o ganisa ion, wo k p ocesses o
wo king ime egula ions. He e hey can con ibu e hei own
accumula ed knowledge o hei o ganisa ions, expand hei
skills and in ol e employees as expe s in hei wo k ‐and
hus as a esou ce o expe ise.
3.6 | Shi s in he Mul i‐Le el Sys em o
Co‐De e mina ion
A six h end in he co‐de e mina ion o wo ks councils esul s
om shi s in he mul i‐le el sys em o co‐de e mina ion,
namely be ween he le els o wo kplaces, companies and
g oups. On he wo ks council side, his mul i‐le el sys em is
spanned by he s uc u e o he local wo ks councils, cen al
wo ks councils and g oup wo ks councils. Cen al wo ks
councils ha e o be o med i a company consis s o mo e han
wo es ablishmen s wi h wo ks council commi ees; g oup
wo ks councils can be o med olun a ily i a company wi h
se e al subsidia ies has a g oup s uc u e. These commi ees a e
usually composed o he heads—chai and depu y chai —o he
local wo ks council commi ees.
Unlike he o ganisa ional s uc u es o companies, hese co‐
de e mina ion s uc u es a e no hie a chically s uc u ed. The
uppe le els a e esponsible o issues ha a ec mo e han one
es ablishmen o company, bu his is done acco ding o he
p inciple o delega ion om below. I is ue ha a shi o
issues and esponsibili ies in a ou o he sup a‐local le el was
al eady es ablished a ound 40 yea s ago. A ha ime, Rancke
(1982) no ed an inc ease in he decision‐making compe ences o
cen al wo ks councils. Howe e , his inding has become mo e
i mly es ablished oday; he cen e o code e mina ion in
companies is inc easingly shi ing o “whe e he music is
played”by managemen , ha is, o he commi ees ha ace he
decision‐making le els o he employe s (Wasse mann 2002).
This is all he mo e impo an as he le el o op managemen
231 o 275
has become inc easingly impo an in he con ex o globalisa-
ion, eo ganisa ion and ou sou cing o he cu en digi al and
ecological ans o ma ions, which a e usually based on deci-
sions made by he managemen boa ds.
The main asks o he cen al and g oup wo ks councils
include coo dina ing he local wo ks councils and de elop-
ing common posi ions on he one and nego ia ing ag ee-
men s wi h op managemen on he o he hand, bo h wi h
he aim o con aining in e nal compe i ion and he isk o
playing o loca ions, and de eloping amewo ks by ag ee-
men s ha de ine minimum s anda ds o local wo ks
councils (see he example o Daimle , Ho mann 2006). As a
esul , his de elopmen leads o a p o essionalisa ion o
in e es ep esen a ion—p omo ed by cen alising esou ces
and bundling compe encies (Beh ens 2019). In his way,
wo ks councils can de elop mo e s a egic capabili ies and,
ideally, gain impac on company decisions on in es men s
and pe sonnel planning (Haipe e 2019).
This is all he mo e ue, as supe iso y boa d co‐
de e mina ion can be included as a u he ins i u ional
esou ce o ac ion by wo ks councils in co po a ions a
company le el. Full pa i y code e mina ion—apa om he
e en s onge code e mina ion in he sh inking sec o o s eel
companies—is manda o y in all join ‐s ock companies wi h
mo e han 2.000 employees. Al hough he e he chai man ap-
poin ed by he sha eholde ep esen a i es has a double o e
and he e o e es ic s he o ing powe o he labou e-
p esen a i es, boa d‐le el code e mina ion o e s esh in o -
ma ion and deep consul a ion on business de elopmen s o
in es men decisions o he la e . Wo ks councils bene i
om his di ec ly as hey make up mo e han hal o he
labou ep esen a i es on he boa ds. Mo eo e , boa d‐le el
code e mina ion s eng hens he ies be ween wo ks councils
and he ade unions who ha e sea s on he boa ds, and i
o e s a di ec access o he managemen boa d (Gold 2011).
Howe e , he ins i u ional esou ces o boa d‐le el ep esen-
a ion co espond s ongly o he loca ion o he headqua e
and he company‐le el a which he boa d is loca ed: hey a e
he highes in he case o companies wi h headqua e s in
Ge many and in boa ds loca ed a he le el o he pa en
company (Rosenbohm and Haipe e 2019).
A he same ime, howe e , i should be bo ne in mind ha he
cen alisa ion o decision‐making powe can esul in de ici s
o legi imacy and pa icipa ion o he wo ks councils.
Impo an decisions a e made u he away om he em-
ployees, and oppo uni ies o pa icipa ion may be educed o
less impo an ope a ional issues. An aliena ion be ween
wo ks councils and employees, he la e bo h in hei capaci y
as o e s and as expe s in he company, seems o be possible
(Wasse mann 2002). Some wo ks councils ha e ecognised
his and de eloped measu es o coun e ac i , including new
o ma s o di ec communica ion be ween cen alised wo ks
council commi ees and employees (Haipe e 2019).
These shi s in he mul i‐le el sys em a e, on he one hand, a
de ensi e eac ion o ex e nal challenges o wo ks councils,
such as how o deal wi h es uc u ing o ans o ma ions; bu
a he same ime hey ep esen , on he o he hand, inno a i e
esponses o hese challenges which may ex end code-
e mina ion beyond he no ms de ined in he WCA by de el-
oping in luence on s a egic company decisions.
3.7 | T ansna ionalisa ion o Co‐De e mina ion
T ansna ionalisa ion, he inal end o men ion he e, is closely
linked wi h he endencies o cen alisa ion in he mul i‐le el
sys em. On he one hand, ansna ionalisa ion in ol es he
addi ion o mo e le els o pa icipa ion o he na ional le els o
co‐de e mina ion om abo e. On he o he hand, he ans-
na ional o ms o in e es ep esen a ion can be seen as a
esponse o he challenges ha ha e a isen as a esul o glo-
balisa ion, compe i ion be ween loca ions and co po a e
eo ganisa ion.
Eu opean Wo ks Councils a e by a he mos impo an and,
abo e all, he only legally ins i u ionalised o m o ansna ional
employee pa icipa ion on company le el (Hann, Haup meie ,
and Wadding on 2017). Admi edly, pa icipa ion he e does no
ex end o he Ge man adi ion o e o and decision‐making
igh s o wo ks councils, bu only o in o ma ion and consul-
a ion igh s. Resea ch has b ough o ligh many indings on
he di e si y and ypologies o he de elopmen o Eu opean
wo ks councils, which ‐ o use he dis inc ions made by Leche
e al. (1999)—show an ex emely wide ange om symbolic o
pa icipa ion‐o ien ed bodies. The co e indica o he e is he way
in which in e es s a e agg ega ed and e ec i ely ep esen ed a
ansna ional le el. Howe e , he e is much o sugges ha
e ec i e Eu opean Wo ks Councils a e p obably much less
common han Eu opean Wo ks Councils wi h me ely symbolic
ele ance. I is no coincidence ha mo e han hal o Eu opean
Wo ks Councils complain ha companies do no adequa ely
ul il hei in o ma ion and consul a ion obliga ions (De Spie-
gelae e, Jagodziński, and Wadding on 2022).
Ge man wo ks councils—inso a as hey a e ep esen ed
he e—usually play a signi ican ole in he bodies o Eu opean
wo ks councils (see Haipe e , He wig, and Rosenbohm 2019).
This is due o he ac ha hey a e well esou ced and ha e a
high le el o expe ise compa ed o in e es ep esen a i es in
o he coun ies. In companies wi h Ge man headqua e s, hey
can use hei s ong co‐de e mina ion igh s o ansna ional
in e es s, ei he by es ablishing links wi h cen al managemen
on behal o o eign employee ep esen a i es o by in oducing
ansna ional issues in o nego ia ions wi h managemen hem-
sel es. Howe e , his ha bou s he isk o posi ioning hem-
sel es as bene ac o s and c ea ing powe asymme ies in he
Eu opean Wo ks Council bodies wi hou he Eu opean le el
being seen as a genuine added alue o hei own in e es
ep esen a ion ac i i ies. I , on he o he hand, Ge man wo ks
councils ep esen subsidia ies, he Eu opean le el o ac ion
usually means a gain in in o ma ion and he abili y o ac
o hem.
Wo ld Wo ks Councils in all known cases build on he es ab-
lished s uc u es o Eu opean wo ks councils and expand hem.
Acco dingly, hese bodies a e also ound exclusi ely in
Eu opean companies. In a mo e ecen case s udy on VW, i was
232 o 275 Indus ial Rela ions Jou nal, 2025
shown ha hese commi ees can be e y e ec i e in co-
o dina ing in e es s a a global le el, p o ided ha gains and
losses in in es men , p oduc ion olume and employmen a e
made anspa en and dis ibu ed among he loca ions acco d-
ing o p inciples ha a e pe cei ed as ai . In his case, he
conside able suppo ha employee ep esen a i es ecei e
wo ldwide om he wo ks councils' o ice a he company's
headqua e is an impo an ac ; his suppo ex ends o ad ice
and aining as well as o he implemen a ion o global ame-
wo k ag eemen s wi h he company ha se minimum
s anda ds o wo king condi ions and he igh s o in e es e-
p esen a i es (Haipe e 2019).
All in all, he ansna ional expansion o co‐de e mina ion is
associa ed wi h con adic o y de elopmen s, namely globalisa-
ion and whipsawing as a po en ial h ea o he powe o ade
unions on he one hand, and he possibili ies o coo dina ing
and in eg a ing in e p e a ions, esou ces and in e es s as an
oppo uni y o expand he abili y o wo ks councils o ac on he
o he . I is hese con adic ions ha will be discussed again in
he concluding ema ks.
4 | Conclusions: Abou E osion and New Pa hs
Wha cha ac e ises he cu en de elopmen s o wo ks councils
and co‐de e mina ion? One answe o his ques ion is ha he e
is no single pa h o de elopmen . Genuine pa h dependency in
he sense o an ex ensi e ep oduc ion o he ins i u ion o co‐
de e mina ion exis s a bes wi h ega d o he legal ounda ions
o co‐de e mina ion in he WCA, which has changed only
ma ginally in he las 50 yea s. Howe e , he second answe is
ha i espec i e o his, a ious de elopmen s can be obse ed
which en ail pa ly inc emen al and pa ly undamen al chan-
ges o he unc ioning and p ac ice o co‐de e mina ion and
which canno be explained by he mechanisms o pa h
dependency.
Two conclusions can be d awn om his. Fi s ly, he e is cu -
en ly a plu ali y o di e en —bu ce ainly in e connec ed—
lines o de elopmen in co‐de e mina ion o wo ks councils ha
poin in di e en di ec ions and combine he p ocesses o e o-
sion, unc ional change and inno a ion in co‐de e mina ion.
And secondly, hese p ocesses also poin beyond he ypology o
inc emen al ins i u ional change men ioned a he beginning.
This is due o he ac ha his ypology does no ake in o
accoun social inno a ions and he associa ed e i alisa ion
app oaches o he ins i u ion, which could poin in he di ec ion
o new de elopmen pa hs. These conclusions will be b ie ly
explained.
I is ue ha indi idual aspec s o he se en lines o de elop-
men can be cap u ed qui e well wi h he ypology o inc e-
men al change. This applies i s ly o he e osion o
co‐de e mina ion caused by he p og essi e sh inking o i s
co e age. I coincides wi h he ype o exhaus ion, whe eby
exhaus ion can be explained he e by he ac ha co‐
de e mina ion is o en unable o gain a oo hold in new com-
panies and ha companies seek o a oid se ing up wo ks
councils. This indica es bo h a loss o he ins i u ion's cogni i e
and no ma i e binding powe o companies and employees
and a ela i e inc ease in he powe o companies, which can
end o he es ablishmen o wo ks councils wi hou ha ing o
ea s onge esis ance. Howe e , his e osion is no aking
place e enly, as la ge companies in indus y and se ices ha e
p o en o be s able cen es o co‐de e mina ion. The e o e, he
esul o he e osion so a has no been a widesp ead decline in
co‐de e mina ion, bu a he a dualisa ion o segmen a ion o
he economy in o a co‐de e mined and a non‐co‐de e mined
sec o .
In he co‐de e mined a ea, in u n, he e a e u he inc e-
men al changes wi h some imes undamen al cumula i e e -
ec s. These include he con e sion gene a ed by o ganised
decen alisa ion in he collec i e ba gaining sys em. This o m
o decen alisa ion o collec i e ba gaining c ea es ec onic
shi s in he dual sys em o labou egula ion, which p o ide
wo ks councils wi h new asks—an en ichmen o unc ions in
he sense o a d i —bu which a he same ime pu g owing
p essu e on wo ks councils. One consequence o hese de el-
opmen s was he con e sion o wo ks councils' policy owa ds
sa egua ding o employmen and loca ions, a p ocess ha was
p ima ily caused by he cen alised decisions o eloca ion and
ou sou cing by company managemen .
So a , he de elopmen s in wo ks councils' co‐de e mina ion
can be summa ised using he ypology o ins i u ional change, a
change ha can be explained p ima ily by he g owing oom o
manoeu e o companies and he associa ed inc ease in hei
powe . O he de elopmen s, howe e , go beyond he ca ego ies
o his ypology because hey a e cha ac e ised by inno a ions
in co‐de e mina ion.
Theseinclude, i s ly,new o mso close coope a ion
be ween adeunionsandwo kscouncilsinnego ia ionson
de oga ions om collec i e ba gaining ag eemen s, in he
con ex o which hese playe s we e able o de elop join
nego ia ion s a egies and, in some cases, expand he wo ks
councils' co‐de e mina ion claims. Wi h espec o he ac i a-
ion o wo ks councils, i was also he ade unions ha
de eloped new app oaches ha p o ided new o ms o suppo
and skills acquisi ion o wo ks councils.
A he same ime, again wi h he suppo o he ade unions,
wo ks councils ely less on adi ional p oxy poli ics and mo e
on employee pa icipa ion, bo h o s eng hen legi imacy among
o e s and o s eng hen compe ence by u ilising he expe
knowledge o employees. This is an impo an esou ce wo ks
councils can mobilise. Ano he impo an new esou ce is he
p o essionalisa ion e ec associa ed wi h he inc easing cen-
alisa ion wi hin he mul ile el s uc u e o code e mina ion.
These de elopmen s These de elopmen s o m he basis o he
wo ks councils in la ge companies o de elop s a egic o ien-
a ions and o expand hei in luence on s a egic company
decisions. Finally, he ansna ionalisa ion o co‐de e mina ion
expands he scope o ac ion o wo ks councils o include he
aspec o ansna ional coo dina ion o in e p e a ions, in e es s
and s a egies in dealing wi h eloca ions o ou sou cing.
These de elopmen s das up o a pa adoxical pic u e— he
weakening o he ins i u ion o co‐de e mina ion on he one and
233 o 275
