Lessons Learned on European Works Councils

By EIRO

Ten years ago, the Council adopted Directive 94/45/EC on the establishment of a European works council (EWC) in Community-scale undertakings and Community-scale groups of undertakings

Eight years after the deadline for transposition of the Directive at national level, companies and workers that have put in place EWCs report the positive role these bodies can play in improving the information flow between workers and management, allowing for consultation of workers on relevant cross-border issues affecting the group, developing a corporate culture in transnational groups and gaining acceptance for necessary change. Reference was also made to the cost and complexity of organising transnational information and consultation in such European structures.

Today, some 750 transnational companies or groups have established EWCs or similar bodies. This represents approximately 45% of the companies or groups of companies and about 70% of the employees potentially concerned. The majority of agreements establishing EWCs were concluded before 1996, on the basis of Article 13 of the Directive, which allowed greater flexibility to workers and management to design and operate procedures for transnational information and consultation in their company. In the meantime, a number of these agreements has been renegotiated.

The lessons learned:

1. EWC: a useful tool to organise transnational information and consultation.

2. Mutual trust

3. Understanding complex issues

4. Reconciling different cultures

5. Ensuring ownership of the EWC by the workforce

6. Difficulty of identifying worker representatives in new Member States

7. Managing multiple layers of information and consultation

8. The good functioning of EWC is an evolving process