Germany's 6.3 Million Low-Paid Workers Spark Push for Stronger Works Councils and New Training Mandates
16.06.2026 - 02:04:20 | boerse-global.de
Roughly 16 percent of employees in Germany — some 6.3 million people — earned less than the low-wage threshold of €14.32 per hour in 2025, with the hospitality sector hit hardest at 51 percent. Against that backdrop, SPD social-policy lawmaker Annika Klose is demanding higher collective-bargaining coverage, broader extension of sectoral agreements, and criminal penalties for anyone obstructing works council elections. Her proposals come as the country's system of employee representation faces a raft of new complexities, from artificial intelligence to cloud computing to psychological risk assessment.
Works councils derive their authority from the Betriebsverfassungsgesetz (BetrVG), Germany's Works Constitution Act. In companies with 200 or more staff, one council member is entitled to full release from regular duties under § 38 BetrVG, chosen by secret ballot of the council's chair. The "lost-wage principle" spelled out in § 37(4) BetrVG guarantees that released councillors do not suffer pay cuts; additional protections include a general ban on discrimination (§ 78 BetrVG) and special safeguards against dismissal under § 15 Kündigungsschutzgesetz (Protection against Unfair Dismissal Act).
Continuous training is now essentially mandatory. The Bildungswerk Rhein/Main education institute highlighted in mid-June that, beyond the basics of getting started on a council, issues such as co-determination on artificial intelligence are gaining urgency. A foundational seminar on labour relations is scheduled for November 2026 in Bad Salzuflen, led by trainers Erika Haselhorst and Doreen Rathert.
Cloud-based systems also demand new expertise. Key legal hooks include the co-determination rights under § 87(1) No. 6 BetrVG, the EU's General Data Protection Regulation (DSGVO), and the AI Act. Munich-based attorney Dr. Volker Wodianka regularly addresses data protection impact assessments and rules governing transfers to third countries in his advisory work.
On occupational safety, the Federal Institute for Occupational Safety and Health (BAuA) issued an updated risk-assessment manual in May. The guide, rooted in the 1996 Arbeitsschutzgesetz (Occupational Safety Act), reflects economic pressures: in 2018 Germany recorded roughly 949,000 workplace accidents, 541 of them fatal, with production downtime costs estimated at around €85 billion. A notable new emphasis lies on psychological hazards.
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Meanwhile, the system of company-based pension plans (bAV) is heading for reform. A position paper by the German Institute for Retirement Provision (DIA) and Zurich Insurance proposes incentive structures and better integration of low-income earners to lighten the burden on the statutory pension system, which in 2025 is absorbing federal subsidies of some €130 billion.
