Worker representation at the board level is good for companies as well because it can encourage pay restraint when the company really can't afford a pay rise. A board of very rich people telling you the company can't afford a pay rise for you is very different from some of your fellow workers saying the company can't afford a pay rise.
The German law goes a lot further than this law does though since it applies to all companies with over 500 employees.
Considering Germany is an economic powerhouse this law probably isn't harming the economy.
https://en.wikipedia.org/wiki/Codetermination_in_Germany
Worker representation at the board level is good for companies as well because it can encourage pay restraint when the company really can't afford a pay rise. A board of very rich people telling you the company can't afford a pay rise for you is very different from some of your fellow workers saying the company can't afford a pay rise.
The German law goes a lot further than this law does though since it applies to all companies with over 500 employees.
Considering Germany is an economic powerhouse this law probably isn't harming the economy.