Works Councils Face Dual Challenge: EU AI Act Compliance and Plant Closure Conflicts
23.06.2026 - 21:23:06 | boerse-global.de
By the beginning of August 2026, German works councils will be legally required to conduct risk analyses for any high-risk artificial-intelligence applications in their workplaces. That deadline, set by the EU AI Act, lands at a moment when labour representatives are simultaneously navigating award-winning innovation deals and escalating conflicts over plant closures and job cuts.
According to a Bitkom study, 54.5 percent of German companies already use AI. The new regulation, effective 2 August 2026, obliges works councils to establish formal risk assessments for high-risk systems — a compliance task that demands technical expertise and strategic foresight.
Some councils have already moved ahead. The works council at automotive supplier Brose in Würzburg was shortlisted for two national honours — the German Works Council Prize and the German Co-determination Prize — on 23 June 2026. Instead of merely reacting to technological change, the body secured the site’s future by building expertise in satellite technology. The Würzburg location employs around 1,400 people.
Building that kind of expertise often starts with getting the fundamentals right. A free Risk Assessment Toolkit offers 41 ready-to-use templates and checklists that help you document and manage workplace risks efficiently — from fire safety to manual handling and lone working. Download the free Risk Assessment Toolkit
Another pioneering example came on 21 June, when the DGB Bavaria chapter awarded the group works council of MAN Truck & Bus for negotiating a company-wide agreement on the use of artificial intelligence. The framework makes clear that AI systems are meant to support employees, not replace them.
But those examples of proactive cooperation stand in sharp contrast to the tensions boiling over at Audi, Volkswagen and Zalando.
At Audi’s Ingolstadt plant, around 5,000 workers joined works council chief Jörg Schlagbauer at a mass meeting to demand clear investment commitments. The carmaker’s plan to cut 6,000 jobs by 2027 is already 4,500 positions deep. The council insisted that the Neckarsulm site must not be put up for negotiation.
A similar mood prevailed at the VW plant in Baunatal. Works council head Carsten Büchling addressed 6,000 attendees, accusing the board of poor communication over the austerity programme. The smaller site on Lilienthalstrasse is set to close in summer 2027; the 100 affected employees will transfer to the main Baunatal plant.
The situation is worse at online retailer Zalando in Erfurt. Talks over a social plan for the logistics centre, which employs roughly 2,000 people, collapsed on 22 June. An arbitration panel with a neutral chair has now been appointed. Closure remains scheduled for 30 September 2026.
While restructuring dominates the headlines, the day-to-day duty of keeping employees safe remains a legal requirement. Over 37,000 UK businesses already use a free Health & Safety Toolkit with ready-made risk assessments, checklists and toolbox talks to stay compliant with key regulations like COSHH and PUWER. Get the free Health & Safety Toolkit
Beyond technology and restructuring, social responsibility is gaining traction in works council work. Roughly 1.3 million people in Germany suffer from a gambling disorder. Labour representatives are being urged to break the taboo around betting addiction and embed preventive measures in company policies.
On a broader note, the 19th German Sustainability Award is launching in 2026 with revised rules. Companies will be evaluated in three size categories. The winners will represent Germany in the European Sustainability Award. The ceremony is set for 3 December in Düsseldorf.
