Understanding European Works Council Consultation.

Gain more understanding of the European Works Council consultation requirements for international companies.

The European Works Council (EWC) has the Right to Information and the Right to Consultation, and was established under the European Works Council Directive 2009/38/EC.

The EWC serves as a transnational body that facilitate the information and consultation of employees on significant business decisions that affect employees in multiple countries.

In addition, the EWC was founded as a result of the economic and political integration of the European Union in multinational company affairs.

In this article we will provide more information about the EWC requirements and consultation.

European Works Council Requirements

Any organisation is required to establish an EWC when it qualifies as a community-scale undertaking or group of undertakings.

Community-Scale Undertakings

Community-scale undertakings (multinational companies) are undertakings employing at least 1,000 employees within the EU Member States and the European Economic Area (EEA) and, at the same time, employing at least 150 employees in each of at least two EU Member States.

Community-Scale Groups of Undertakings

Community-scale groups of undertakings are groups of undertakings, employing in total within the EU Member States and EEA at least 1,000 employees and controlling at least two group undertakings in different Member States, of which each state employs at least 150 employees.

EWC Directive Beyond EU Headquarters

The headquarter (HQ) of an international company or group of undertakings does not impact the European Works Council Directive. The directive is even applicable if the HQ is outside of the European Union and the company has 1,000 employees within the EU and at least 150 in two or more EU Member States.

Management Responsibilities

Management of an international company is responsible for creating the conditions and means necessary for the setting up of a European Works Council.

In addition, they are also initiating negotiations on their initiative or at the written request of at least 100 employees or their representatives in at least two undertakings in at least two Member States.

Objective of the European Works Council

Joining the EWC of a company is a great opportunity for employee representatives from across Europe to discuss management on the various issues affecting them and to raise ideas that go beyond a local or national level.

It is also an opportunity for management to share their thoughts and plans for the strategic direction of the company in Europe with a broad cross-section of employees.

The EWC has three main objectives:

  1. Representing employees within the scope of the agreement.
  2. Ensuring constructive exchange with the company and the employees.
  3. Providing advice and opinions on the company’s strategy.

Topics in Scope for European Works Council

The EWC is a body representing the European employees of a company. Through them, employees are informed and consulted by management on the progress of the business and any significant decision at European level that could affect employment or working conditions.

Topic that concerns or impact two or more countries in scope for the European Works Councils are:

  • Company Strategy
  • Data Protection
  • Diversity, Equality & Inclusion
  • European Law
  • Employment Benefits
  • Financial Data
  • Health & Safety
  • Mergers & Acquisitions
  • Training

Please note, the EWC is not responsible for negotiations, compensation, salaries and other non-wage benefits; local or national topics subject to national legislation or to local or national collective agreements, political issues or matters relating to individuals, which will continue to be dealt with at local levels under the consultation procedures of the European country concerned.

European Works Council Consultation Requirements

The rights of the EWC consist of the Right to Information and the Right to Consultation.

Right to Information

The EWC is informed by management with data of which explanation may be sought, and questions can be raised. This information shall be given at such time, in such fashion and with such content as are appropriate to enable the EWC to undertake an in-depth assessment of the possible impact and, where appropriate, prepare for consultations.

Typical topics of Right to Information include:

  • The economic and financial situation of the group company.
  • Changes in the organisation.
  • Employment trends.
  • Investments in major projects, or other cross-border matters.

In summary, the information contains the facts and figures in timely fashion before any company decision is made.

Right to Consultation

The Right to Consultation means a dialogue and exchange of views between the EWC and central management or any other more appropriate level of management. The dialogue and view shared by central management of the company gives the EWC the right to provide their opinion and influence the decision before the final decision is made.

Typical consultation topics are strategic or structural decisions with transnational impact, such as:

  • Mergers and acquisitions.
  • Relocation or closure of sites or major units.
  • Collective redundancies across more than one country.
  • Introduction of major new technology.
  • Changes to work organisation with cross-border effects.
  • Group-level restructuring programmes.
  • Transnational policies on health, safety, diversity, equality, inclusivity and sustainability.

In conclusion, the EWC provides for the following:

  • An opportunity for listening and understanding each other’s concerns and perspectives.
  • A long-term approach to influence and engage with each other upwards and downwards.
  • A valuable opportunity to build trust and networks across the organisation.

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