Betriebsrat and its Limitations

An important aspect of industrial relations is the betriebsrat group, which is nothing but a representative body of employees who work in synchronization with the management and the workers for the welfare and wellbeing of the workers without harming the company’s interest. It is a popular practice among many European countries along with UK and USA following the footsteps in establishing such welfare bodies for their employees. This custom of betriebsrat, down the lane has almost reached the legal status with high end powers to work in protecting the interest of the employees.

Though it is practiced in many countries but the extent of limitations and powers differ among different countries. This is more visible when there is a comparison between companies from United States with companies from Europe, like Germany. Usually the betriebsrat office present in United States companies does not have much say or powers. Their involvement is much limited with very minimal powers denoted to them. But on the contrary the powers given to the companies of European countries are much wider where they have slowly gained a position much integral and closer to the management group. The principal behind this difference is the fact that the companies of the United States prefer to buy manpower, pay off the services of the workers without encouraging any involvement towards the growth and working of the company. Thus the worker also does not feel for the organization. But the Europeans don’t feel that this is the right process as they strongly believe that every employee is equally responsible for the company’s growth. They must feel a sense of belonging and that is why in Europe, betriebsrat gets a stronger platform and together with the management they produce the best of the organizations.

betriebsrat
have rights to speak in favor of workers in case of recruitment and dismissal of employees, transfer and positioning, work enviourment, workplace appearance, equal pay, employee insurance, collective bargaining, enforcing rules and overall catering to all the interest of an employee. In few places betriebsrat have rights to consultation and information but only occasionally in taking decisions. They work with the motive of maintaining generous and loyal attitude of the employers.

In many countries this is a justified department where though there is no hard and fast rule of keeping such a department, but having such a representative of workers, helps the employers in understanding their perspective, if they want.