European Works Councils in Practice

By Anni Weiler

The Australian government is about to legislate to remove workers rights to have a say in the workplace. The European Union has legislated to ensure they do have a say. This report shows the benefits of the European approach for workers and employers.

The establishment of European works councils (EWCs) is an important development for industrial relations at European level. European legislation now underpins the need for procedures and a corporate forum for informing and consulting employees in Community-scale undertakings.

Both practices and experiences vary widely, however, between different EWCs, and individual company backgrounds, cultures and industrial relations policies play a key role in influencing procedures. Limitations are apparent, often due to lack of resources, inadequate communication, national differences, or conflict of interest among the participants.

The Foundation's report, based on a comprehensive case study project, focuses on these issues, looking at the internal functioning of European works councils. It examines the relationships between the various actors, both management and employee representatives, and between players both within and outside the EWCs.

The report warns that even where the information and consultation process works well, it seldom includes employees in critical corporate decision-making. Nonetheless, the benefits of EWCs appear to be clear. They are seen as key to better performance of multinational companies at a time of increasing internationalisation and globalisation.

European Foundation for the Improvement of Living and Working Conditions, 2004