A director on the board of a company who is elected as a representative of the workforce. In Germany, worker directors are a legal requirement on the supervisory boards of large companies. Under the Works Constitution Act 1952, one-third of the seats on supervisory boards are allocated to worker directors in companies with more than 500 employees and under the Codetermination Act 1976 larger companies with more than 2,000 employees must have an equal number of shareholder and worker representatives. The strongest system, however, operates in the coal and steel industry, where there must be parity on the supervisory board and where employee representatives have a right of veto over the appointment of the labour director to the company's management board. [See codetermination.]
Subjects: Human Resource Management.