German Labor Conflicts Escalate as Works Councils Challenge Dismissals and Takeover Bids
13.06.2026 - 06:31:47 | boerse-global.de
A string of intensifying disputes between employers and employee representatives across Germany is drawing attention to the legal and practical limits of worker protections. Recent cases at KölnBäder GmbH, Commerzbank, and the Bremen Jobcenter highlight what union officials describe as mounting attempts to sideline or silence employee representatives.
Legal battles over the dismissal of works council members remain particularly fraught. In a case brought before the Nuremberg Labour Court, a works council member was handed an extraordinary dismissal after posting comments in the company intranet. Judges scrutinised whether the posts constituted impermissible private use of company resources or legitimate workplace communication. The outcome underscores how high the bar is for employers seeking to remove elected representatives.
That principle was reinforced in late January by Germany's highest labour court, the Bundesarbeitsgericht (Case No. 2 AZR 128/25). It ruled that terminating a severely disabled employee during the statutory waiting period was invalid because the consultation period with the disabled persons' representation had not yet expired when the dismissal notice was delivered that afternoon. The decision strengthened the rights of workers with special protection status.
In Cologne, the ver.di union sounded the alarm on Friday after a member of the works council at KölnBäder GmbH was abruptly suspended. The employer cited an alleged working-time violation. The works council had refused to consent to an extraordinary termination. Tjark Sauer, ver.di district manager for Cologne-Bonn-Leverkusen, called it a "massive infringement on the rights of a works council member." He accused management of union busting — attempting to obstruct legitimate employee representation — and demanded the immediate reversal of the suspension. Further legal action is being considered.
The most high-profile conflict involves Commerzbank's works council and Italy-based UniCredit's takeover bid. The group works council is preparing to file a criminal complaint accusing UniCredit of market manipulation and misleading the capital market, citing Sections 119 and 120 of the German Securities Trading Act (Wertpapierhandelsgesetz). Works council chair Sascha Uebel confirmed an extraordinary meeting was held to discuss the matter.
UniCredit's offer, announced at the start of May, proposes swapping 0.485 of its own shares for each Commerzbank share. Employee representatives argue that the ratio significantly undervalues the stock, which was trading at around €37.20 at the time. They also question the validity of the 11.22 percent acceptance rate reported by UniCredit. The works council and Commerzbank's management suspect that the bulk of those shares come from banks with ties to UniCredit. Following a formal complaint by Commerzbank, the German financial regulator BaFin has opened an investigation. UniCredit denies all allegations.
Another flashpoint erupted at the Bremen Jobcenter in May when employee Fred Göcken was dismissed after voicing strong criticism in a television documentary. That case has already triggered prior legal disputes and formal warnings.
Meanwhile, structural changes are adding to the friction. Home-furnishings retailer JYSK is relocating roughly 50 accounting positions from Handewitt, Germany, to Poland — despite having posted a revenue increase to €1.297 billion. Employee representatives are now reviewing dismissal protection measures and the fairness of the social selection process used to determine which staff will be affected.
