Südwesttextil calls for modernization of German co-determination laws

Südwesttextil is calling for a modernization of the Works Constitution Act to ensure that corporate decision-making processes remain efficient in a changing technological landscape. The organization argues that co-determination procedures must be accelerated to maintain company agility.

The need for reform has been acknowledged by the Union and SPD Coalition Committee. In its ‘Program for Upswing and Employment’ dated July 2, 2026, the committee announced plans to simplify and speed up the implementation of software, updates, and technical equipment related to artificial intelligence. Social partners are expected to develop proposals to facilitate cooperation through updated labor law regulations.

Concerns have been raised regarding the impact of digitalization. Under current law, works councils have co-determination rights regarding technical devices used to monitor employee behavior or performance. With the rise of AI and data-driven applications, there is a risk that an increasing portion of corporate IT infrastructure could fall under these restrictive co-determination requirements, potentially slowing down technological adoption.