The Federal Republic of Germany has begun an experiment in industrial democracy giving workers federally guaranteed rights and authority in industrial decision making. All workers in companies with five or more employees are entitled to elect a works council with which management must consult concerning all employment policies and conditions. All companies with over 100 employees must establish a workers finance committee, which will be given specific information on the company's economic and financial situation. The structure has functioned with little friction. Management generally speaks positively about the council system. The more controversial aspect of codetermination is the federal law requiring large stock companies to allow employees to elect 50 percent of the board of directors with rights and authority equal to owners' representatives on the board. Full parity is still elusive, because the power scales remain tipped in favor of management, a situation that is criticized by labor activists. Some owners fear excessive labor influence, and others use and benefit from the system. Works council representatives from both labor and management support the arrangement and its lack of confrontation. Unions remain strong, and strikes occur, but the cooperative potential of codetermination continues to work to resolve conflicts. However, some concern about the future of unions exists. Early fears about the inadequacy of workers in decision making positions have not been borne out, and West Germany has regained substantial industrial strength. (MSE)