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Examines the pressures on the German co‐determination system in the context of the introduction of total quality management (TQM) in a German steel company. The case is a particularly interesting research site because the German steel industry is regulated by the most extensive co‐determination laws in Germany and the German company in question is French‐owned, enabling comparisons to be drawn with the introduction of new management methods in France. Outlines the positions of the works council and labour director towards TQM and the difficulties that they experienced when it was introduced. Concludes by portraying two possible scenarios of the effects of new management techniques on German co‐determination.

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