German Toymaker Playmobil Fires Works Council Head as Union Cries Foul Over Plant Closure
Published on 07/19/2026 at 18:52 | Editorial boerse-global.de
The move comes just weeks after the company permanently closed its production site in Dietenhofen, a facility that employed around 350 people until it shuttered on June 30. That restructuring—part of a broad overhaul at the Bavarian toy manufacturer—has now been overshadowed by a legal battle between management and its own employee representatives.
Michael Ulbrich, the longtime chairman of Playmobil’s works council, was dismissed with immediate effect. The company, geobra Brandstätter Stiftung & Co. KG, issued a summary termination, citing “serious breaches of duty.” Playmobil declined to specify whether those breaches related to Ulbrich’s employment contract or to obligations under the German Works Constitution Act (Betriebsverfassungsgesetz), saying only that the matter was the subject of ongoing proceedings.
Works councils in Germany enjoy strong legal protection against dismissal; an extraordinary termination like this one is generally permissible only for a compelling reason and typically requires either the council’s approval or a court order. Ulbrich has challenged his firing at the Nuremberg Labour Court, which will now decide whether the company’s justification holds up under German labor law.
The industrial union IGBCE reacted sharply, describing management’s decision as a “taboo breach” of Playmobil’s corporate culture. Despite the dismissal, the union stressed that works council operations at the company’s Zirndorf headquarters will continue uninterrupted.
