Its creation can be forced by a vote of the employees and the council has a legal special status. This probably comes as a reaction to multiple distribution centers around Germany doing exactly that and forcing the creation of local work councils with the help of unions.
A Works Council is entirely company specific. A Union is usually concerned with an entire sector and deals with company-specific issues only a limited way. In practice the Union organisations often provide assistance and advice to a Works Council, even to companies in which they are not active as a Union.
It's basically like a government of the company and a union is just another party that can get elected.
It's just that the only way a union member can get into a work council is getting elected just like every other employee.