EU welcomes compromise on European Works Council

EU Employment Commissioner Vladimir Špídla  yesterday (4 September) welcomed the deal struck between social partners’ on a revision of the European Works Council (EWC) Directive after months of deadlock and Commission threats to go it alone if no amicable solution was reached.

Earlier this week, trade union and business representatives – who had been struggling to find a common position since the Commission took the initiative by announcing a review with a social partner consultation in February – informed the French Presidency that they accepted the proposal to revise the EWC Directive. The proposal was a key element of the EU executive’s new social package presented on 2 July (EURACTIV 03/07/08). 

The European Trade Union Confederation (ETUC) had been pressing for a review of the 1994 EWC directive since 2004, pointing to large gaps in implementation. Indeed, the directive obliged companies with 1,000 or more workers and at least 150 employees in two or more member states of the European Economic Area (all  EU states plus Norway, Iceland and Liechtenstein) to set up councils with worker representatives from all countries. 

However, twelve years after the directive’s entry into force, only about a third of companies have done so, with medium-sized businesses of up to 5,000 workers lagging behind the most. 

ETUC hopes that the new directive will bring legal certainty to companies’ obligations, promote cross-border dialogue and strengthen the position of the EWCs compared to national-level works councils. 

Business associations had long resisted any move to revise the directive but finally gave in and decided to co-operate after the Commission’s February move. 

In a joint letter to French Employment Minister Xavier Bertrand, social partners gave their backing to the Commission text, although they suggested some changes. 

While trade unions have asked for a more prominent role in the negotiation process with employers and a clearer definition of ‘information’ and ‘consultation’, businesses’ main demand is a two-year transition period following the adoption of the new directive. This should allow for voluntary agreements in cases of so called ‘controlled undertakings’ – such as acquisitions or financial participation. 

Jorgen Ronnest from BusinessEurope, which represents 40 national federations at the EU level, told EURACTIV that he considered the agreement to be “a win-win situation” for all parties and “as sensible as it can be” given the demands of the different actors. He especially lauded the efforts of the French Presidency, which he said approached all social partners just after the Commission had adopted the text. 

“I am convinced that a revised directive will translate into a better functioning of European Works Councils and make them more efficient. This will serve the interests of workers and employers alike,” Commissioner Spidla said. 

All parties hope the revised text will be adopted by all 27 member states under the current French Presidency. 

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