So it's not mandatory if somehow all employees decided not to form one, but if any of them wanted to, it's mandatory to let them and presumably support them/listen to them in some way?
Basically it’s not mandatory in the sense that you will not be fined as a company if you do not have one. However, employees can make a motion to elect a Betriebsrat (works council) in a given location. Then, if 3 locations have a local Betriebsrat the Gesamtbetriebsrat can be formed which is regularly elected across the whole German staff. Grocery chains like Lidl and Aldi have prevented the formation of a Betriebsrat by employing union busting style measures (intimidating or firing staff, etc).
Iirc teslas giga fab does not have an elected Betriebsrat.
Since many American companies incorporate in Germany for their German branches, they can also face Betriebsrats elections.
Overall I do think a Betriebsrat is a net positive for a company. It’s not always as profit oriented as an executive but it has a long term interest in the company as opposed to executives who just think in quarter years and about keeping shareholders happy.
Iirc teslas giga fab does not have an elected Betriebsrat.
Since many American companies incorporate in Germany for their German branches, they can also face Betriebsrats elections.
Overall I do think a Betriebsrat is a net positive for a company. It’s not always as profit oriented as an executive but it has a long term interest in the company as opposed to executives who just think in quarter years and about keeping shareholders happy.