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1 The organization has to exceed a ceratin size, which is 5 employees (in Germany). There is no obligating to the employer to establish a workers' council. But the employees have the right to elect a workers' council, they have to take action. Once a workers' council has been elected, though, the employer is legally obliged to inform the workers' council (or call it employee's council, as you like) about all affairs which concern the staff / employees. The employer is also supposed to reach consent with the emplyoee's council. If the employer refused refuses to do so, the council can go as far as to take legal actions against the employer.
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