The paper explores the effects of works councils on apprenticeship training in Germany. It argues that the German law attributes works councils substantial information and codetermination rights to training-related issues. Thus, works councils may also have an impact on the cost-benefit relation of workplace training. Using detailed firm-level data containing information on the costs and benefits of apprenticeship training, the study finds that firms with works councils make a significantly higher net investment in training compared with firms without such an institution. Another finding is that the fraction of former trainees still employed with the same firm five years after training is significantly higher in the presence of works councils, thus enabling firms to recoup training investments over a longer time horizon. The paper concludes that all works council effects are much more pronounced for firms covered by collective bargaining agreements.