European Works Council

The European Works Council ( EWC ) is a workers' representation in cross-border business in the European Union or the European Economic Area who has the right to be informed and consulted by the company management. Its jurisdiction is limited to decisions and developments that have cross-border effects on the employees of the company or group of companies.

Prehistory

A pan-European cross-border worker representation was required since the 1960s as a necessary complement to the national interest groups by the unions. Yet ideas diverged considerably about. First introduced in 1992, the majority of procedures due to changes in the EC Treaty and the introduction of the single European market enabled a breakthrough. Since none of the previously discussed concepts proved to be feasible and a majority, the European Commission has taken a completely new approach. Instead of a uniform legal regime for all countries in Europe Transnational effective agreements between employee representatives and central management of the company should be negotiated.

Legal basis

Legal basis of the EBR ( who need not be hot in all companies so ) is the European Works Council Directive of 22 September 1994, which was amended on May 6, 2009. The Directive was transposed into national law in Germany by the Act on European Works Councils ( EBRG ) of 28 October 1996 ( Federal Law Gazette I p 1548). The aim of the Directive is to create a cross-border worker representation with consultation and information rights in pan-European companies. The criteria for a Community-scale, EWC enterprise required to provide that it employs at least 1000 employees within the Member States and that at least 150 workers are employed in at least two Member States. The policy also applies to the present in EU countries branches of multinational companies, which are headquartered outside the EU.

The Directive has now been implemented in the 27 EU Member States into national law, although, according to national preferences, in a very heterogeneous manner. On June 18, 2011 numerous amendments of the European Works Councils Act came into force in Germany. These more specific information and consultation rights and confer the right to development of the EWC. This means that the European EWC Directive 2009/38/EC has been largely transposed into German law. For earlier completed EWC agreements, there is a grandfathering. When both sides want this, the agreements also with changes to the corporate structure must not be negotiated automatically from scratch.

As the central institution for the constitution of an EWC Directive determines the " special negotiating body " of the employee whose selection mode is not set. The detailed provisions are left to national legislation. It should negotiate an agreement on the composition and powers of a to be established EWCs. In the Annex to Directive minimum requirements are presented. This " subsidiary legislation " provide that the EWC has at least three and not more than 30 members that once take place a meeting with the central management once a year, in this about the " probable development of the business, production, sales and employment situation, has to inform changes in the organization, introduction of new work processes, transfers, mergers or closures. " The EWC can this give its opinion and has the employee representatives to inform the national sites over the content and results of the information and consultation.

The decision on the establishment of an EWC is made in negotiations between the special negotiating body of the employees and the central management of the European- scale undertaking. On the initiative of central management or the employee ( at least 100 workers from two plants from two Member States) the beginning of negotiations. In the design of the agreement, the negotiating body and the central line are autonomous. The negotiating body may request union representatives and experts for consultation.

Seat of the EWC is usually in the top management. If this is not domiciled in any of the EU member states, it has to designate as a negotiating partner a representative ( eg Commissioner for Europe ), otherwise the management of the company with the highest number of employees in a Member State is responsible for the negotiations.

Due to historical differences due to the employee representatives of various European countries, the Directive requires only minimal requirements for such a council. These consist in information and consultation rights, but not in participation rights as those enjoyed by the German works council. Comparable he is, therefore, with a European Economic Committee, similar to the Works Constitution Act provides for him for German companies with more than 100 employees.

The information and consultation rights may well interfere with the rules for the prevention of insider trading according to § 13 WpHG.

Transposition into national law of other EU countries

The legal transposition of the Directive into national law was done in a very different form. In Austria, it occurred in Part V of the Labour Relations Act (§ § 171-207 ). In the EU accession countries of Central and Eastern Europe, this was done mostly by simple insertion of appropriate provisions in the labor laws, not by special law.

Dissemination and further

After a wave of foundations 1994/1996, but did not lead to increased transnational communication and in terms of objectives, as it frequently has limited the activities of the EWC on an information event per year, it came in the last few years increased transnational contacts among members and a genuine dialogue with employers. In 2009, the European Trade Union Institute (ETUI ) in Brussels was one of 908 European enterprises with an EWC. This corresponds to more than one-third of the EWC requiring companies that employ about two- thirds of the employees covered by the Directive. 2010, the number of start-ups of the EWC had fallen by ETUI- information to the lowest level since 1994 (only 11). Today (2011) active EWCs represent about 18 million workers. In 1500 another company EWC could be established.

Although legally restricted to information and consultation rights has evolved in individual cases, the EWC to a strong negotiating body. So has the European Employee Forum, as the EWC is to say at General Motors, complete with its European management since 2000, several framework agreements to secure sites.

While the trade union federation IndustriALL cross-industry or European branch unions can negotiate sectoral European agreements with employers, this possibility exists for them in the case of group negotiation of specific agreements not. Since the turn of the millennium, therefore, European works councils in addition to the company's management and operating at European or international level sectoral union in the conclusion of transnational agreements are involved at the corporate level. The articles of this Agreement are for example Restructuring, occupational health and safety, training and mobility, privacy and fundamental rights as enshrined in the core labor standards of the ILO. The agreement must then be implemented in a national agreement. The respective capabilities of the European Works Councils are to be taken in each individual case.

Empirical studies show that the most important support comes in the foundation and goal formation of EWC of the unions ( " obstetrics " ), such as as part of the Leonardo projects LIFT.COM and TEAM.EWC where training material has been developed and provided for to team organizing intercultural cooperation between the councils.

Assessment

According to the judgment of a union- scientist of the EWC is an example of a well balanced mix of subsidiarity (both national adaptation through implementation), proportional representation ( interaction of governments and organizations in their creation and implementation), and flexibility ( is "the Directive opens up various options for implementation ) ".