German Federal Labor Court Rules on Works Council Election in Construction Firm

The German Federal Labor Court (Bundesarbeitsgericht) dismissed an employer's challenge to a works council election held in May 2022 for the South region of a nationwide construction company. The court affirmed that the joint election was invalid because the two branches M and S no longer formed a single organisational unit after a tariff agreement expired, making the employer’s appeal unfounded.

In a related context, the works council at Volkswagen, backed by the metalworkers' union IG Metall, recently secured a collective agreement that guarantees employment until 2030, commits the company to provide 600 annual apprenticeship places, and outlines plant‑specific investment plans while limiting closures and layoffs.