Works Councils Flex Co?Determination Powers as German Auto Supplier Standoff Escalates

5,000 ZF employees walk out after HR director booed; works council blocks weekend work as management threatens China move. German co-determination rights and new EU pay rules add complexity.

Roughly 5,000 employees of the automotive parts supplier ZF walked out of a works assembly in Friedrichshafen on Tuesday before it even ended. The reason: Human Resources Director Lea Corzilius was met with minutes of sustained booing when she took the stage. Works Council Chair Achim Dietrich described the mood among staff as “incredibly heated.”

The flashpoint is management’s plan to scrap above?tariff pay supplements — most controversially the so?called “Zeppelin bonus.” That allowance accounts for between 7% and 13% of gross salary. For the 7,500 workers at the Friedrichshafen site, losing it would mean monthly cuts of €300 to €500 per person. The company wants to terminate the bonus effective July 1, 2027, and negotiations broke down on Monday when the employer side walked away.

ZF justifies the belt?tightening by pointing to a tough economic environment. In 2025 the group posted a loss of €2.1 billion. Domestically, up to 14,000 jobs are on the line.

In response, the works council has blocked weekend work on a major order from South Korea. Management has reportedly threatened to move production to China if no deal is reached.

The confrontation illustrates how much leverage worker?representation bodies enjoy under German law. The Works Constitution Act grants extensive co?determination rights. IG Metall, citing specialist publications from July 2026, notes that works councils have a say in vacation guidelines and schedules — though the actual duration of leave is not negotiable.

Co?determination also extends across borders. On April 15, 2026, the Berlin?Brandenburg State Labour Court confirmed the right of a works council at Berlin’s BER airport to have a say for a Ryanair subsidiary. The Federal Labour Court had already affirmed that the body qualified as a works council in May 2026.

New legal requirements are piling on additional duties. The EU Pay Transparency Directive, in force since June 7, 2026, sets stricter standards. Full transposition into German law is not expected before 2027. Lawyers point to a Federal Labour Court ruling from autumn 2025, which held that knowledge of even a single comparator’s salary can create a presumption of pay discrimination.

Artificial intelligence at work is another emerging field. When AI?driven systems are used for performance reviews that could form the basis of warnings or dismissals, a works agreement is essential. Data type, purpose, and storage periods must be precisely spelled out.

Changes are also looming for sick?leave formalities. A coalition decision on July 2, 2026, plans to make a medical certificate compulsory from the first day of illness and to abolish the phone?based sick note. Currently the law requires a written note only from the fourth day onward, though employers can already demand one earlier. Because the decision has not yet been enacted, current practice remains in place.

To help works councils navigate these complex rules, training providers such as the ver.di education centre in Lower Saxony are offering seminars from November 2026 on labour law, dismissal protection, and the fundamentals of the Staff Representation Act.