European Labour Law Jean Monnet Chair of EU Labour Law Academic Year 2016-2017 Silvia Borelli: silvia.borelli@unife.it http://www.unife.it/giurisprudenza/giurisprudenza/studiare/european-labour-law Please, check the web site for any materials distributed during the course! Lesson 8

European Works Council The purpose of a European Works Council (EWC) is to bring together employee representatives from the different European countries in which a multinational company has operations. During EWC meetings, these representatives are informed and consulted by central management on transnational issues of concern to the company’s employees (see Article 1 of Directive 2009/38). What does information mean? ‘information’ means transmission of data by the employer to the employees’ representatives in order to enable them to acquaint themselves with the subject matter and to examine it; information shall be given at such time, in such fashion and with such content as are appropriate to enable employees’ representatives to undertake an in-depth assessment of the possible impact and, where appropriate, prepare for consultations with the competent organ of the Community-scale undertaking or Community-scale group of undertakings (Article 2 let. f). What does consultation mean? ‘consultation’ means the establishment of dialogue and exchange of views between employees’ representatives and central management or any more appropriate level of management, at such time, in such fashion and with such content as enables employees’ representatives to express an opinion on the basis of the information provided about the proposed measures to which the consultation is related, without prejudice to the responsibilities of the management, and within a reasonable time, which may be taken into account within the Community-scale undertaking or Community-scale group of undertakings (Article 2 let. g).

European Works Council - When does the EWC Directive apply? The Directive applies to Community-scale undertaking (i.e. a undertaking with at least 1000 employees within MSs and at least 150 employees in each of at least two MSs) and to Community-scale group of undertakings (i.e. a group of undertakings with at least 1000 employees within the MS, at least two group undertakings in different MS and at least one group undertaking with at least 150 employees in one MS and at least one other group undertaking with at least 150 employees in another MS) (Article 2 let. a) and c). A group of undertakings means a controlling undertaking and its controlled undertakings (for the definition of ‘controlling undertaking’ see Article 3).

European Works Council What is the procedure to fulfill the obligation to establish a EWC or a procedure for informing and consulting employees? The central management shall initiate negotiations for the establishment of a EWC or an information and consultation procedure on its own initiative or at the written request of at least 100 employees or their representatives in at least two undertakings or establishments in at least two different Member States. For this purpose, a special negotiating body shall be established (Article 5, § 1 and 2).

European Works Council What are the possible outcomes of the procedure? The SNB may decide, by at least two thirds of the votes, not to open negotiation or to terminate the negotiations already opened. A new request to convene the SNB body may be made at the earliest two years after unless the parties concerned lay down a shorter period (Article 5, § 5). The SNB and the CM can reach an agreement that determines the composition of the EWC, its functions and the procedure for information and consultation etc. (Article 6, § 2). The CM and the SNB may decide, in writing, to establish one or more information and consultation procedures instead of a EWC (Article 6, § 3). The CM and the SNB may decide to apply the subsidiary requirements. This requirements apply as well when the CM refuses to commence negotiations within six months or when, after three years, the CM and the SNB are unable to conclude an agreement (Article 7). The Community-scale group or the undertaking that has concluded an agreement providing for the transnational information and consultation of employees before the implementation of the Directive 94/45/EC (22.9.1996) shall not apply the EWC Directive (Article 14).

European Works Council The CM and the EWC shall work in a spirit of cooperation with due regard to their reciprocal rights and obligations. The same shall apply to cooperation between the CM and employees’ representatives in the framework of an information and consultation procedure for workers (Article 9). The members of the EWC shall inform the representatives of the employees of the establishments or of the undertakings of a Community-scale group of undertakings or, in the absence of representatives, the workforce as a whole, of the content and outcome of the information and consultation procedure carried out in accordance with the EWC Directive (Article 10, § 2). The agreement on EWC shall establish the arrangements for the links between the information and consultation of the EWC and national employee representation bodies (Article 12, § 2).

European Works Council European Works Council Database https://www.worker-participation.eu/European-Works-Councils Commission’s website on EWC http://ec.europa.eu/social/main.jsp?catId=707&langId=en&intPageId=211