Gradual Evaluation of Co-determination

Co-determination is the most important of all the factors that played important roles in the post-war reconstruction and rehabilitation of German industries. It is believed that Germany has been successful to regain its lost supremacy in industrialization only through Co-determination.

Germany was defeated in both the first and the Second World War. Destruction of German industries was unparalleled and no industrial enterprise worth the name could survive bomb attacks by the Allied Forces. Completely destroyed industrial enterprises numbered around seven hundred. The most affected were the steel and chemical industries. Other industries were also heavily affected and remained closed for a long time even after the war was over. Unemployment problem engulfed the whole economy. Almost one crore people became homeless. Food and water became so scarce that life became endangered in the whole of Germany.

            But what a wonder! The German people, thanks to their technical expertise, hard labour and unique system of management, became successful, within a short period, to rebuild the economy. The defeated and humiliated soldiers in the battlefield became undaunted captains of industry. They did the wonder without any foreign aid. They re-organised their industries and management in a way that amazed the US or the British people who won the war. The Germans soon became successful to emerge as economic super power and to reteliate.

The conflict between the USA and the Soviet Union also helped Germany to flourish. The more fortunate was West Germany which was fortified by the western big powers in order to encounter possible Soviet aggression. American and British capital found increasing inroad into West German industries. Research and development activities also helped the invention of much improved machine and technology, thereby enhancing productivity to such an extent that it was unparallel in the world.

            Undoubtedly, political stability is one of the prc-rcquisities for industrial development. After the establishment of the Federal Republic in 1949 political stability in West Germany became so pervasive that it helped establish Co-determination on a solid foundation. However, the initial inroad to Co-determination started during World War-I when a boost in industrial production  became a hard reality. Gradually the workers and their unions were brought  closer to management. The formation  of  "Works Council" in industrial enterprises  with representatives of workers laid the foundation of Co-determination in Germany.

Finally the passage of a special piece of law called "Workers Co. determination" in German legislative assembly, gave co-determination the legal foundation. According to that law, the formation of 11 member "supervisory board", having equal number of members (5+5) from among workers and shareholders and one neutral member was made compulsory. The passage of another law in 1952 called "Constitution of the Enterprise" also helped Co-determination by requiring the formation of "Works Council" with 50% of workers' membership mandatory. In the opinion of some scholars, "Works Council is the heart of Co-determination." After 1952 the powers and functions of 'Works Council' were extended and they were compulsorily introduced in all industries except iron. steel and coal. Ultimately the Co-determination Act of 1976

(implemented in 1978) was passed which still remains in full force throughout German industries. In modern Germany jobs in industrial management are considered much more prestigeous than those in civil or military bureaucracy. Co-determination offers the opportunity for young graduates to brighten their career and at the same time to serve the nation by ensuring quality and higher productivity in industry. The industrialists, managers and workers, are all working together in the same direction. thereby ensuring the best possible industrial relations in the world.