Abhinav
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YOU RUN THE FACTORY. LEAVE THE SOFTWARE TO US.

Why your configurator quickly becomes a works council matter, even though it is not meant to monitor anyone

There is a moment many managing directors know. The project is decided, the budget is signed off, the vendor is chosen. And then it sits for four months.

Not because of the technology. Because of the works council.

What usually follows is a meeting in which the vendor explains that the system doesn't monitor anyone. It calculates quotes. It schedules production. It inspects parts. It has nothing to do with employees.

That argument sounds plausible but falls short legally. And because it falls short, it costs months.

SECTION 1 · THE LEGAL POSITION

What the law says, and how it is actually read

Section 87(1) no. 6 of the German Works Constitution Act gives the works council a co-determination right over the introduction and use of technical systems "intended to monitor the behaviour or performance of employees."


Since the Federal Labour Court's Produktograph decision of 9 September 1975 (1 ABR 20/74), the provision has consistently been read objectively. What counts is not whether monitoring is intended, but whether the technical system is, by virtue of its technical properties, objectively capable of itself collecting and recording individualised or individualisable behavioural or performance information about employees.

The consequence that matters most in practice is routinely missed: the question is not whether you intend to analyse, but whether the system's own facilities would make analysis possible.

Apply that to your own system. A quoting configurator with user logins records who handled which enquiry, when, and for how long. An MES shows throughput per work centre. A production planning system knows which order stalled at which station. An inspection system records reject rates, and in many plants a shift roster identifies who was producing.

Whether a particular system falls under § 87(1) no. 6 depends on its specific technical configuration and the information it processes. For configurators, MES and production planning systems that assessment is frequently engaged, particularly where user activity, handling times, work centre data or other person-related performance information can be processed and evaluated.


Establish early whether your system is subject to co-determination. Starting that assessment shortly before go- live is what stretches the schedule.

SECTION 2 · THE OVERLOOKED PROVISIONS

Three provisions alongside § 87, and one European one


  1. § 90(1) no. 3 BetrVG

    Information during planning

    The employer must inform the works council in good time, with the necessary documentation, about planned work processes "including the use of

    artificial intelligence," and must discuss the effects on employees. In good time means during planning. Not after acceptance

  2. § 80(3) sentence 2 BetrVG

    Expert support for AI

    Where the works council has to assess the introduction or use of artificial intelligence, engaging an external expert is deemed necessary by law. The

    council no longer has to justify the need. The person and the cost still require agreement with the employer, but whether an expert may be engaged is

    settled once there is an AI element

  3. § 95(2) BetrVG

    Selection guidelines

    Participation rights over selection guidelines apply also where AI is used in drawing them up

  4. Article 26(7) AI Act

    A separate EU obligation

    Employers deploying a high-risk AI system in the workplace must inform workers' representatives and affected employees beforehand. This duty stands

    independently of German co-determination. The application dates for high-risk obligations have been postponed during the Omnibus process, so confirm

    the current position with counsel before building a timeline around it

SECTION 3 · WHAT ACTUALLY CAUSES THE DELAY

Projects rarely stall on objection. They stall on information gaps.

The council asks: which person-related fields are stored? Who can see them? How long are they kept? Could an individual performance assessment be derived from them? Is that prevented technically, or only promised?

And in the room stands a sales manager with a presentation but no data model. He undertakes to follow up. By the time it arrives, the next council meeting is four weeks away. And the one after that, eight.

The delay is not produced by conflict. It is produced by information gaps between meeting dates.


Straight metallic shapes with a blue gradient
Straight metallic shapes with a blue gradient
SECTION 4 · WHAT UNBLOCKS A PROJECT

Five things that save the schedule

Involve the works council at specification, not before go-live

§ 90 requires it anyway. Practically, it is the only point at which objections are still cheap: what changes in the specification costs nothing, what changes after acceptance costs a change project.

Disclose the person-related fields, field by field

Not "the system collects no personal data," but a list: which field, what purpose, which role can see it, what retention period. A company that builds the system can produce that list. A company that licenses one often cannot.

Build the commitments into the software, not the presentation

Aggregated reporting per work centre rather than per person. Role-based permissions where the reporting role cannot resolve individuals at all. Automatic deletion periods. No individual rankings. A works council looking at a permissions matrix negotiates differently from one listening to an assurance.

Write those points into the works agreement as technical facts

An agreement describing what the system cannot do holds up better than one describing what the employer will not do.

Give the expert real documentation

Data model, field list, logging concept, role concept. An expert given auditable documents finishes in one sitting. An expert given marketing material asks follow-up questions, and every follow-up costs a meeting cycle.



SECTION 5 · HOW WE HANDLE IT

Field list before the first meeting

We supply the field list, the role concept and the logging concept before the first works council meeting sits — not as an annexe to the quotation, but as a working document for your council and its expert. Where a co-determination right exists, we say so.

We have no interest in selling a project that then sits for six months. We measure ourselves on whether a system is still in daily use after six.

You will not hear from us that a system can be introduced without works council involvement. That it can clear that involvement in eight weeks rather than eight months is realistic — provided the documents are on the table before the first meeting.

This article describes practice from a software builder's perspective and is not legal advice. For assessment of your specific case and the drafting of a works agreement, please involve employment counsel.

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Show us one quote from your sector.

Bring an actual customer enquiry and we will walk it from request to quote — including which fields it creates that your works council will want to see.