German company sets up Europe-wide rep structure to reflect its new status

The German-based chemicals company BASF reached an agreement last month on a new structure of employee participation, for when it becomes a European Company early next year.

BASF employs 61,000 people in Europe and it announced in February that it was to convert itself into a so-called European Company. This relatively new concept permits the simplification of some legal structures and emphasises the company’s European activities.

As with all large German companies half of the members of BASF’s supervisory board must represent employees and the company is required to retain this in the new European structure. However, they must now speak for all the employees in Europe, rather than just those in Germany.

In the deal signed on 11 November, it was agreed that one of the six employee representatives would come from Belgium. The other five are Germans, three from the elected works councils and two from the union. The existing European works council has also been strengthened.

Speaking after signing the deal Robert Oswald, the chair of the BASF group works council, said it was “a good day for the employees in Europe”.