The
EWC "transmits information from management to employees to ensure that decisions made in one participating state which affect the employees in another participating state will be communicated to all workers."
(Berkowitz, P.,
The European Works Councils, 1996, visited 2009-10-13)
The EWCDirective
In 1994, the European Council of Ministers issued a Directive (94/45/EC) on the establishment of
European Works Councils for the purposes of informing and consulting employees in companies which operate at the EU level. The
EWC directive applies to companies with at least 1000 employees within the EU and at least 150 employees in each of at least two Member States.
"[The directive] obliges them to establish
European Works Councils to bring together workers' representatives (usually trade unionists) from all the EU Member States the company operates in, to meet with management, receive information and give their views on current strategies and decisions affecting the enterprise and its workforce."
(European Trade Union Confederation (ETUC),
European Works Councils (EWCs), visited 2009-10-10)
Structure
"The majority of
European Works Councils meet once a year, with an extra meeting as required. The structure generally conforms to one of two models: workers' representatives only, or joint worker/management representation, and is influenced by industrial practices in the company's home country.
EWCs may deal with a huge range of economic, financial and social issues, including research, environment, investment, health and safety and equal opportunities."
(European Trade Union Confederation (ETUC),
European Works Councils (EWCs), visited 2009-10-10)
Statistics
"Of the estimated 2,204 companies covered by the legislation, some 772 (35%) have
EWCs in operation. However, many of these are larger, multinational firms, so that the proportion of employees represented by
EWCs is much higher: more than 60% or 14 million workers across Europe. […]
The companies that have so far failed to set up
EWCs tend to be smaller enterprises, often with a low level of trade union organisation, with managements hostile to involving workers in decision-making, or companies that have undergone drastic restructuring in recent years."
(European Trade Union Confederation (ETUC),
European Works Councils (EWCs), visited 2009-10-10)
Future Revisions
"Although the number of
EWCs is growing every year, doubling since 1996, the rate of progress is too slow, and constitutes a major challenge for the development of European information and consultation procedures.
At present, there are few if any penalties for companies that defy the Directive. […] [In addition], the revision foreseen in the original Directive is already some six years overdue, and the ETUC [(European Trade Union Confederation)] is calling for urgent steps to strengthen the law. In recent years, there have been many cases of companies, such as Renault in Vilvoorde, Belgium, carrying out major restructuring without consultation, in defiance of the spirit of the Directive."
(European Trade Union Confederation (ETUC),
European Works Councils (EWCs), visited 2009-10-10)
Global Works Councils
"Recent years have also seen the establishment of worldwide works councils in a small number of MNCs [(multinational corporations)]. In French
-based Renault, a worldwide works council was established in 2003 following the negotiation of a rider to the
EWC agreement. Further meetings of the Renault
EWC are supposed to coincide with those of Nissan's
EWC […] so as to facilitate communication between employee representatives from the two groups. German
-based companies establishing worldwide works councils include DaimlerChrysler […] and Volkswagen […]."
(Hall, M. and P. Marginson,
Developments in European Works Councils, European Industrial Relations Observatory On-Line, 2004, visited 2008-03-13)
