Codetermination in Germany is a concept that involves the right of workers to participate in management of the companies they work for.
There is also legislation in Germany, known as the Betriebsverfassungsgesetz whereby workers are entitled to form Works Councils at the local shop floor level.
Some social reformers maintain that workers are not merely factory parts, but citizens with equal rights.
This means matters on organisation of the business, the conditions of work and the management of personal and economic decisions affecting the future of the company and jobs.
Operational codetermination (Betriebliche Mitbestimmung) concerns the organisation of the business, job arrangements, personal planning, guidelines for hiring, social services, time registration and performance assessments.
Corporate codetermination (Unternehmensmitbestimmung) concerns private (GmbH) and public limited companies (AktG).
After threats of massive strikes by Metalworker unions, the Montan-Mitbestimmungsgesetz [de] was passed in 1951 in West Germany.
The purpose was that in the lead up to World War II, these companies were openly supporting the Nazis financially.
[4]: 38 Passed on the 11 October 1952, this law introduce one third selection of Supervisory Board directors by workers (§§ 76 ff.
On 15 January 1972, the Act of 1952 was updated giving more powers for participation in personal and social affairs of company employees.