SAP AG has taken steps to form a workersโ council comprised of non-union employees in an effort to fend off what the German software vendor views as the harmful influence of unions on its โstart-upโ company culture.
SAP issued a statement late Tuesday announcing the decision by eight employee representatives, who currently sit on the companyโs supervisory board, to organize a workersโ council election themselves.
โIf SAP is to have a workersโ council, then it should be a works council that is representative of the heart of the company,โ Chief Executive Officer Henning Kagermann said in a statement. โWe have a duty to maintain our unique company culture and values.โ
The move follows an attempt by three SAP employees who are members of Germanyโs IG Metall union to establish a workersโ council at the company. The move was denounced by Dietmar Hopp and Hasso Plattner, who are cofounders and major shareholders of SAP, as potentially damaging to its culture, and by 91 percent of SAPโs employees who voted against such a move on March 2.
The IG Metall employees turned to a German court to help win support for their efforts. A petition to install an election committee for selecting candidates was lodged with the Mannheim Labor Court, which is scheduled to announce a ruling April 11.
SAP evaluated the legal situation in Germany and concluded that it could not prevent the union employees from setting up an election committee, the company said in a statement.
โSAP took the initiative to facilitate the swift formation of an election committee run by the elected staff employees, rather then waiting for an enforced election committee,โ analyst company Ovum Ltd. said in a research note Wednesday.
โSince the employees vote in the members of the workersโ council, and as the vast majority of them are not in favor of trade union interference, they stand a good chance of keeping this unique culture intact,โ Ovum said.
SAP is the largest company in Germany to be without a workersโ council. Earlier attempts to establish such a representative body have failed, lacking majority support from employees.
Currently, SAP employees are represented by the eight employee representatives elected to the companyโs supervisory board. They represent SAPโs worldwide workforce of nearly 36,000 people.
Following IG Metallโs attempts to get a foot in the door at SAP, Hopp warned last month that SAP could be forced to relocate its German headquarters if the union should have a say at the software vendor.
The Germanyโs Workersโ Council Constitution Act, which supports the establishment of an employee representation body, was established at a time when โglobalization was either an unknown concept or regarded predominately as a derogative term,โ Plattner, who is also chairman of the supervisory board at SAP, wrote in an internal e-mail circulated to employees last week. In some areas, SAP has aligned itself to the Act, โbut there are some areas that simply do not fit a global high-tech company with more than 80 percent of its employees being college graduates,โ he said.
In his e-mail, Plattner praised SAPโs company culture, noting that it has allowed conflicts of any type to be discussed and solved โduring the late nights, on weekends, over beer and on the soccer field.โ