Operational changes such as reorganisations, mergers or site closures have a significant impact on the workforce. The Works Council has the statutory right to be actively involved in the negotiations. According to Sec. 111 WCA, the employer is obliged to inform the Works Council of planned changes at an early stage and to negotiate a reconciliation of interests and, if necessary, a social plan with the Works Council. The aim is to mitigate negative consequences for employees and ensure that operational changes are implemented in a socially responsible manner.
Our expertise as economic experts enables Works Councils to enter these negotiations well prepared. We support Works Councils in addressing financial matters by analysing key economic figures, assessing the financial framework conditions, and providing viable solutions. Through our comprehensive analysis, Works Councils can make informed decisions and effectively represent the interests of the workforce.
Support for the Works Counsils in the Finance Committee
Employee representatives have the right to economic information, which is usually presented in the form of key figures, tables and graphs. Works Councils and Finance Committees are faced with the challenge of interpreting this economic information correctly and deriving suitable options for action from it.
Financial matters are key aspects of the Works Council’s responsibilities, requiring a deep understanding of corporate finances and economic developments. Our advice helps not only to understand economic data, but also to use it strategically for negotiations with the employer. This includes, among other things:
- Analysing company and industry development: What innovations are necessary? Do we need new products or processes to remain competitive in the long term? Through a thorough analysis, we can identify necessary changes and provide strategic recommendations.
- Capacity and personnel planning: How can market requirements be managed without unnecessarily burdening the workforce? Careful planning helps to optimally utilise resources and minimise workload.
- Safeguarding jobs: What measures are needed to maintain employment in the long term? Targeted strategies can secure jobs and ensure economic stability.
- Rationalisation strategies: Are personnel cost savings really necessary or are there alternative efficiency gains in other areas? A comprehensive evaluation can reveal alternative solutions that are both cost-effective and socially responsible.
Analysing annual and consolidated financial statements: What statements can be derived from the balance sheet, income statement and controlling documents? A detailed analysis of these documents provides valuable insights into the company’s financial health.
Our services for Works Councils and Finance Committees
We support Works Councils and Finance Committees in economic change processes and offer:
- Development of targeted questions to assess the company’s development,
- Industry research for the economic categorisation of business development,
- Preparing and attending meetings of the Finance Committee, in particular to explain the annual financial statements in accordance with Sec. 108 (5) WCA,
- Analysing balance sheets and annual financial statements, taking into account company-specific key figures,
- Inspection and evaluation of business data such as balance sheets, profit and loss accounts, cost and performance accounting and controlling documents,
- Workshops and compact trainings for works councils, finance committee members and employees to jointly develop strategies for dealing with business data and alternative options for action.
Training for Finance Committees
In addition to our advisory work, we also offer training courses for Finance Committees to deepen their expertise in financial matters and co-determination. You can find out more about our training programmes here.
With our support, Works Councils and Finance Committees receive the necessary economic expertise to exercise their co-determination rights in a targeted and effective manner. Contact us to find out how we can help Works Councils manage financial matters with confidence.