A growing number of major German companies are evading the rules of co-determination. New data from the Institute for Co-determination and Corporate Governance (I.M.U.) of the Hans-Böckler Foundation, as reported by the South German Newspaper, indicates that at least 3.18 million employees across approximately 500 large German corporations are being denied parity co-determination.
Under the law, large companies are fundamentally required to staff their Supervisory Boards equally with representatives from shareholders and employees. According to the I.M.U., this means that these millions of workers are losing the right to have their interests represented within the company structures.
The number of employees excluded from co-determination-at least 3.18 million in roughly 500 corporations-is a significant increase, adding about 700,000 employees compared to the figures recorded by the institute in 2022. Sebastian Sick, a corporate law expert at the I.M.U., told the newspaper, “In major German companies, co-determination is increasingly being denied to employees.” He added that the previous year marked a peak in this trend, noting that the proportion of large companies that actually implement co-determination on their Supervisory Boards is at a historically low point since the law took effect in 1976.
The law mandates parity for companies with over 2,000 employees, although certain businesses, such as media conglomerates, are exempt. However, even among the companies where exemptions do not apply, the data shows a steep decline. According to the I.M.U., only about 57 percent of these large companies had a parity-filled Supervisory Board in 2025, down from approximately 60 percent in 2022 and 67 percent back in 2019. Sick explained that companies are increasingly using legal loopholes and legal avenues to circumvent the co-determination mandates.
