Germany : battle over the representation of employees after the integration of SAP Systems into the parent company SAP AG

The election of the first works committee in the history of SAP (a workforce of 14,000 in Germany) on December 1, 2006 had already given rise to a wrestling match lasting several months between, on the one hand, management against the election of a works committee and the presence of a union in the company and, on the other, part of the employees supported by IG-Metall. After a long legal battle and numerous attempts by SAP bosses to divide employee ranks, the company management had a change of mind and supported the election of a works committee along the lines of UBR (a unitary works council) composed of 23 members ( see our article n°06629). This type of works council constitutes an exception to the legislation in this area inasmuch as it makes it possible to avoid local committees in the different production locations of the firm. Furthermore, its size is more restricted than a central works council(Gesamtsbetribsrat) which oversees the different local councils. The law on works councils stipulates however that such an exception is possible only if the employees are effectively represented and if no local council has been elected in the company. 
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ion to the legislation in this area inasmuch as it makes it possible to avoid local committees in the different production locations of the firm. Furthermore, its size is more restricted than a central works council(Gesamtsbetribsrat) which oversees the different local councils. The law on works councils stipulates however that such an exception is possible only if the employees are effectively represented and if no local council has been elected in the company.

Two legally incompatible structu

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