Co-determination

Co-determination is a practice whereby the employees have a role in the management of a company. The word is a literal translation from the German word Mitbestimmung. Co-determination rights are different in different legal environments. In some countries, like the USA, the workers have virtually no role in corporate management; and in others, like Germany, their role is more important. The first serious co-determination laws began in Germany through collective agreements in 1918. In 1976, a general law was passed mandating that worker representatives hold seats on the boards of all companies employing over 500 people.