Because of the trigger levels for EWCs, this consultation is only likely to be of interest to large, multi-national employers.
European Works Councils – some background information
Under the European Works Council Directive 94/45/EC (the EWC Directive), employers of a certain size with a presence in more than one European country may be under an obligation to set up a European Works Council (EWC), or a similar procedure for the purpose of informing and consulting employees about transnational issues.
The obligation only applies to companies that employ at least 1,000 people in the European Economic Area (the EEA) and at least 150 in two or more countries in that area. It also applies to groups of companies that meet those thresholds.
This obligation should not be confused with information and consultation rights under the Information and Consultation of Employees Regulations 2004, which potentially apply, from April 2008, to UK employers with a workforce of 50 or more.
Consultation
The EU Treaty contains a procedure for enacting EU employment policy through ‘social dialogue’ between management and labour at EU level – the so-called ‘Social Partners’. The main Social Partners are the ETUC for trade unions and BusinessEurope (formally UNICE) for employers.
Under Social Dialogue the European Commission is required to consult the Social Partners if it wants to bring forward an employment or social policy initiative.
If the Commission’s proposal is in an area where there is common ground between them, the Social Partners can then decide to reach some kind of joint agreement. This can then be implemented in two ways: either through an autonomous and non-legislative agreement between the two sides (e.g. a joint code of conduct); or as an EU directive given force of law. If the two sides cannot agree the Commission can then come forward with its own, sometimes legislative, proposal
Using this procedure the Commission has now invited the social partners to consider how to improve the ways in which EWCs operate, with a view to revising the EWC Directive.
Issues that the Commission is seeking views on include:
- Possibly clarifying the definition of ‘consultation’ and add a definition of ‘information’, linking these definitions to those contained in other European directives.
- Explicit recognition of the role that trade unions can play in negotiations and support for EWCs.
- Introducing an obligation on EWC representatives to report to the workers they are representing and a right to training for those representatives.
- Introducing arrangements which would necessitate some EWC agreements being renegotiated when major changes take place within a group (eg as a result of mergers and acquisitions).
- Amending the current system which specifies the maximum number of special negotiating body members and replacing it with a system which better reflects the number of employees.
- Linking information and consultation at a transnational and national level, for example by introducing provisions which could allow a parallel start to the process of informing and consulting the EWC and the national representative bodies.
Timeframe
The consultation itself runs until 3 April 2008, after which the social partners may launch negotiations for a European-level agreement that will form the basis for revised legislation in this area. If the social partners do not negotiate, or cannot reach agreement, it will be up to the Commission to draft a proposal for new legislation.
We attach a link to the Commission’s consultation here. If you have any comments you would like to feed into EEF’s response to the Commission’s consultation, please contact Vanessa Nicholls, Legal Advisor at EEF on vnicholls@eef.org.uk by no later than 14 March 2008.