This ruling (decision of June 13, 2024, Ref.: 3 TaBV 1/24) determined that giving these managers voting rights at multiple sites would breach essential electoral principles and as a result the election can be contested.

Decision Background

The case revolved around the validity of a works council election held in June 2022. The employer operates five separate sites, each with its own works council, within a matrix organizational structure in which managers lead employees from different locations. For the election, the voting list included managers not directly assigned to the location but who still exercised leadership over employees at that operation site. The employer argued this was a violation of significant election rules and sought a legal ruling to invalidate the election, asserting that voting rights should only apply to those firmly assigned to this site.

The core issue was defining who qualifies as belonging to a particular site. According to the Federal Labor Court’s interpretation, a degree of disciplinary authority and integration into the site is required. TheRegional Labor Court of Baden-Wuerttemberg focuses on the legal interpretation of the term integration, underscoring that integration under the Works Constitution Act is not uniformly understood and should be interpreted differently depending on the regulation’s intent. The court emphasized that matrix managers’ eligibility to vote depends primarily on their labor contract’s assignment to a specific site. The operation site holds primary authority, issuing employment-related directives, and covering most of the collective co-determination matters relevant to these managers. Therefore, integration for voting eligibility should only be recognized at the site where managers are contractually assigned for regular work duties.

The court concluded that there were no legitimate reasons to justify multiple voting rights for matrix managers across various sites, as it would lead to inconsistent representation. Consequently, matrix managers are only granted voting rights in their operating site. However, whether this decision will hold in the long term remains open, as other regional labor courts, such as the Regional Labor Court Hessen, have issued differing rulings (e.g., LAG Hesse, decision of January 22, 2024, Ref.: 16 TaBV 98/23). As the Baden-Wuerttemberg ruling has allowed for an appeal to the Federal Labor Court, a final, unifying decision on this issue is eagerly anticipated.

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