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THE EU LEGAL FRAMEWORK ON EMPLOYEE INVOLVEMENT
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The employee involvement: from practice to law
The challenges faced by the European economy and the development of industrial relations, as well as the evolution of multinational company structures generated an increased need for a common legal framework aiming to set the standards of employee involvement in decision-making and establish clear procedures to be implemented in all EU member states and candidate countries. The harmonization of participative tools is an essential condition for the proper functioning of the European Social Dialogue and a core principle of the EU acquis.
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Various laws, same scope
The employee involvement is a topic wide present in the legal framework of EU. When approaching the legal aspects of the topic we need to refer to several European laws currently in force, in order to build the picture of legislative priority and perspectives of national transpositions: Directive 2002/14/EC establishing a general framework for informing and consulting employees in the European Community; The European Works Councils Directive; The Collective Redundancies Directive; Council Directive 2001/86/EC of 8 October 2001 supplementing the Statute for a European company with regard to the involvement of employees Council Directive 2003/72/EC of 22 July 2003 supplementing the Statute for a European Cooperative Society with regard to the involvement of employees The Transfer of Undertakings Directive.
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The Directive is establishing a general framework for informing and consulting employees in the European Community. Object and principles: 1. The purpose of this Directive is to establish a general framework setting out minimum requirements for the right to information and consultation of employees in undertakings or establishments within the Community. 2. The practical arrangements for information and consultation shall be defined and implemented in accordance with national law and industrial relations practices in individual Member States in such a way as to ensure their effectiveness. 3. When defining or implementing practical arrangements for information and consultation, the employer and the employees' representatives shall work in a spirit of cooperation and with due regard for their reciprocal rights and obligations, taking into account the interests both of the undertaking or establishment and of the employees. Directive 2002/14/EC
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The European Works Councils Directive
Directive 2009/38/EC of the European Parliament and of the Council of 6 May 2009 on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees (Recast). The Directive defines: ‘Community-scale undertaking’ - any undertaking with at least 1 000 employees within the Member States and at least 150 employees in each of at least two Member States; ‘group of undertakings’ - a controlling undertaking and its controlled undertakings; ‘Community-scale group of undertakings’ means a group of undertakings with the characteristics: - at least 1 000 employees within the Member States, - at least two group undertakings in different Member States, - at least one group undertaking with at least 150 employees in one Member State and at least one other group undertaking with at least 150 employees in another Member State; The European Works Councils Directive
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The Collective Redundancies Directive
Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies For the purposes of this Directive (a) 'collective redundancies` means dismissals effected by an employer for one or more reasons not related to the individual workers concerned where, according to the choice of the Member States, the number of redundancies is: either, over a period of 30 days: - at least 10 in establishments normally employing more than 20 and less than 100 workers, - at least 10 % of the number of workers in establishments normally employing at least 100 but less than 300 workers, - at least 30 in establishments normally employing 300 workers or more, or, over a period of 90 days, at least 20, whatever the number of workers normally employed in the establishments in question. The Collective Redundancies Directive
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Directive 2001/86/EC of 8 October 2001 supplementing the Statute for a European company with regard to the involvement of employees. Objective: 1. This Directive governs the involvement of employees in the affairs of European public limited-liability companies (Societas Europaea, hereinafter referred to as "SE"), as referred to in Regulation (EC) No 2157/ To this end, arrangements for the involvement of employees shall be established in every SE in accordance with the negotiating procedure referred to in Articles 3 to 6 or, under the circumstances specified in Article 7, in accordance with the Annex. Directive 2001/86/EC
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Directive 2003/72/EC of 22 July 2003 supplementing the Statute for a European Cooperative Society with regard to the involvement of employees. Objective: 1. This Directive governs the involvement of employees in the affairs of European Cooperative Societies (hereinafter referred to as SCEs), as referred to in Regulation (EC) No 1435/ To this end, arrangements for the involvement of employees shall be established in every SCE in accordance with the negotiating procedure referred to in Articles 3 to 6 or, under the circumstances specified in Articles 7 and 8, in accordance with the Annex. Directive 2003/72/EC
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The Transfer of Undertakings Directive
Directive 2001/23/EC of 12 March 2001 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses. Scope and definitions: 1. (a) This Directive shall apply to any transfer of an undertaking, business, or part of an undertaking or business to another employer as a result of a legal transfer or merger. (b) Subject to subparagraph (a) and the following provisions of this Article, there is a transfer within the meaning of this Directive where there is a transfer of an economic entity which retains its identity, meaning an organised grouping of resources which has the objective of pursuing an economic activity, whether or not that activity is central or ancillary. (c) This Directive shall apply to public and private undertakings engaged in economic activities whether or not they are operating for gain. An administrative reorganisation of public administrative authorities, or the transfer of administrative functions between public administrative authorities, is not a transfer within the meaning of this Directive. 2. This Directive shall apply where and in so far as the undertaking, business or part of the undertaking or business to be transferred is situated within the territorial scope of the Treaty. The Transfer of Undertakings Directive
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The situation of the member states
In some countries, the implementation of these Directives has meant little or no change to national legislation (example: Germany). The main exceptions to this are the UK, Latvia, Lithuania, Romania and Bulgaria, all of which had no pre-existing general framework in place in relation to the information and consultation of employees. In most countries, the actual implementation of legal provisions is one of the main challenges.
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The influence of Directives on information and consultation of workers and employee involvement
Although these Directive contain minimum provisions that must be implemented by all EU Member States, some countries implement their own complementary provisions, either by law or by collective agreements (example Italy, UK). In countries with foreign-owned companies, the legislation sets out a baseline, above which companies can put into place their own policies in relation to employee participation (example Malta).
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Some questions remain Foreign-owned private sector organisations need to adhere to the law but can adopt their own policies, including through negotiations with trade unions, and can negotiate their own collective agreements. In some of the newer EU Member States, the social dialogue is as yet relatively undeveloped in comparison with other EU Member States The chemical sector is dominated in most countries by SMEs, where collective employee representative can traditionally be a challenge There is an increasing need for company-level tools that foster worker participation and more integrative networking
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Conclusions There are a range of trade union initiatives taking place across Europe that seek to boost employee participation. Employee participation in decision-making in the chemicals sector varies between country, although operating within the framework of EU legislation on information and consultation of employees and participation requirements in the area of health and safety. The existing strong tradition in most countries of employee representation through trade unions, and a well-established social dialogue between employer and employee representatives, which can foster employee participation.
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