Multinational companies operating in Europe will be able to maintain the status of European Works Councils (EWCs) set up according to voluntary agreements (so called ‘pre-directive’ or article 13 agreements) following the adoption at first reading by the European Parliament and an agreement reached by the Council of Ministers on 17th December. Currently, nearly half (48,9%) of the total number of currently active EWCs within the European Union have been set up on this basis, that is, according to Article 13 of the original Directive (or art. 3 of directive 97/74/EC in case of the UK and IE companies) rather than article 6, which lays out more formal criteria*.

Elsewhere the recast Directive provides clearer definitions for information and consultation, more transparent provisions securing continuity of operation of EWCs in cases of restructuring (mergers & acquisitions) and imposes obligations to include arrangements concerning duration, termination and renegotiation of EWC agreements. Furthermore, it introduces more transparent rules on access to language training for EWC members. The recast directive also addresses the issue of linking the national (works councils) and international (EWCs) levels of information and consultation and, for the first time, provides recognition of the role of trade union organisations. Moreover, it empowers EWCs to collectively represent the interests of employees of the Community-scale undertakings.

The recast legislation is aimed at ensuring that European workers’ information and consultation rights are effective and clarifying the obligation of multinational companies to provide employee representatives with information concerning the structure and distribution of workforce among various countries of the undertaking’s operations.

According to information available from the ETUI EWC database the revision will influence directly or indirectly the operation of nearly 900 currently existing EWCs and affect some 15,6 million workers that are currently employed in multinational companies across Europe.

The highest share of employees represented by EWCs can be found in the metal, services and chemical sectors. These sectors are those most often hit by restructuring.

*During the two-year period granted to EU member states for transposition of the 1994 Directive (that is by September 1996), many companies moved to implement voluntary agreements that according to article 13 of the Directive are exempted from its regime. Since 22/09/1996 only Art. 6 agreements have been allowed, regulated by more stringent conditions set in the Directive. Article 6 requires the establishment of special negotiating bodies and rules on procedures and timing. It is therefore the legislation rather than the company that decides the form and nature of the EWC.

Background

Adopted on 22 September 1994, the European Works Council Directive (94/45/EC) gave millions of workers across the European Union the right to information and consultation on company decisions at EU level through their EWC representatives. The Directive, upon a request by employees, obliges companies to establish EWCs to bring together workers’ representatives (usually trade unionists) from all the EU Member states the company operates in, to meet with management, receive information and give their views on current and prospective strategies and decisions affecting the enterprise and its workforce. The Directive applies to all companies with 1,000 or more workers that have at least 150 employees employed in two or more EU Member States.

It is estimated that the 895 EWCs (including 14 SE Works Councils) currently operating in 858 multinational companies cover roughly two-thirds of the working population.

• See ETUI’s
• See the ETUI European Works Council Memorandum in , and (provisional version)
• See the ETUI’s (section on EWC revision)