German firms demand consultation changes


The business lobby in Germany is calling for fundamental changes to legislation which mandates companies to let their workforce have a role in corporate decision-making.

According to the Financial Times, the proposals include reducing worker representation on large companies' supervisory boards from a half of seats to a third and are likely to inflame political exchanges on how to improve German competitiveness ahead of federal elections in 2006.

The proposals will also fuel tensions between business and trades unions at a time when several leading companies are in sensitive negotiations with unions over plans to cut costs and shed jobs.

Financial Times | German business attacks board laws