German Labor Relations Under Strain: Playmobil Fires Works Council Chief Amid Broader Job Cuts

Horst Brandstätter Group dismisses works council head Michael Ulbrich, sparking union outrage; Germany faces widespread job cuts at Festo, VW, Brose, and upcoming labour law reforms.

Just weeks after shuttering its Dietenhofen factory, the Horst Brandstätter Group has dismissed works council chairman Michael Ulbrich without notice. The company, best known for its Playmobil toys, cited "massive violations" of employment duties as grounds for the extraordinary termination, carried out in mid-July. The works council itself reportedly approved the move, though management insists the action targets Ulbrich personally, not the institution of the works council.

The IGBCE union reacted with outrage. A spokesman called the dismissal a breach of a fundamental taboo. In Germany, works council members enjoy exceptionally strong statutory protection against dismissal — making the firing of a council chairman a rare and legally contentious step. The union suspects the company is trying to silence critical voices among the remaining workforce.

The conflict escalated after production at Dietenhofen ended on June 30, costing roughly 350 jobs. Ulbrich had already been placed on leave following the closure and was locked in a legal dispute with his employer. A conciliation hearing took place at the Nuremberg Labour Court, though the two sides gave conflicting accounts of their willingness to negotiate. The company declined further comment on internal personnel matters.

The Playmobil case is unfolding against a wider wave of industrial restructuring in Germany. In July 2026, several major firms announced significant workforce reductions:

• Festo: The automation specialist plans to cut around 1,300 jobs nationwide, with the Rohrbach site hit hardest. Reductions are to be achieved through voluntary programs and socially compatible measures.

• Volkswagen: At the Osnabrück plant, car production is set to end in summer 2027, affecting roughly 2,000 jobs. Conversations are underway about converting the site for defence manufacturing. The state of Lower Saxony is considering acting as a mediator between Israeli defence contractor Rafael and major shareholder Qatar.

• Brose: The automotive supplier denied rumours it would fully abandon its Wuppertal site. With the lease expiring, the company is searching for a new property either in Wuppertal or within a 25-kilometre radius. A decision affecting over 100 employees is expected by September.

These developments run parallel to shifts in German labour law and court rulings. Earlier this year, the Federal Labour Court clarified requirements for works council elections: written ballots must now clearly state the cut-off date on the forms.

Meanwhile, a planned reform of employment law is taking shape. Employers would be allowed to demand a doctor’s certificate from the very first day of sick leave. Fixed-term contracts without a specific reason could be extended to up to 48 months and renewed six times. Labour law experts advise companies to update their internal policies ahead of the changes.